Karnataka to set up fund for supporting tech startups in the country

IT Minister Priyank Kharge says that 5,000 startups have already registered, out of which 250 were funded in 2016.
Karnataka to set up fund for supporting tech startups in the country
Karnataka to set up fund for supporting tech startups in the country
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The state government in Karnataka has been quite aggressive on promoting startups in the state and it has now planned to go beyond and invite startups from across India to register their venture in Karnataka. A separate fund has been created for this purpose. This has been disclosed by the state’s IT Minister Priyank Kharge, according to a report Inc42.

The only point to be considered is the startup has to be registered under Karnataka Shops and Commercial Establishment Act, 1961. The minister also clarified that those startups need to pay their taxes in Karnataka to benefit from the funding largesse.

Without disclosing the schedule for the launch of the new fund, the minister indicated that some 5,000 startups have already registered in the state and out of these around 250 were picked up for funding during the last calendar year 2016.

Karnataka had kickstarted this journey in the year 2015 with an ambitious target of helping 20,000 startups to grow in the state by the year 2020. Towards this end, the state has been creating funds in various forms and names, totaling Rs 300 crore.

Sectors like biotechnology, information and technology and tourism are some of the specific sectors the government has focused its efforts on. Then, there were funds allocated for startups founded by women entrepreneurs and one for agri-tech startups.

The Central Government also stepped in, with the then Minister of Industry Nirmala Sitaraman announcing a Startup Coast in Karnataka. This project envisaged a 100-seater workspace in Mangaluru and, up to, five incubation hubs in colleges across the southern part of India.    

Another initiative launched is the ELEVATE 100 project, started in May 2017, which is in partnership with TiE and Deshpande Foundation. Within this, the government expects to identify 1000 startups from smaller towns and is possible with rural roots. It has been reported that the government received 1700 such applications for support under this ELEVATE 100 initiative and 100 were shortlisted for receiving the benefits.

Possibly, as a result of all these efforts, Bangalore has moved ahead of Delhi as the top startup destination. Led by iconic startups like Flipkart and InMobi, Bangalore is home to over 6000 startups and just around 700 of them have succeeded in raising funding to the tune of $6.34 billion in the past 3 years.

The stated objective of the government in the state is to rival the Silicon Valley in creating the ideal ecosystem for startups.

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