T-Hub will work with the government to attract the best start ups and entrepreneurs from across the world.

Telangana unveils State Innovation Policy to set up Rs 2000-crore master fund
Atom Startups Wednesday, July 26, 2017 - 17:49

The state of Telangana has announced its innovation policy aimed at promoting innovation and entrepreneurship in the state.

According to a report in The Hindu, the innovation policy will look at development of physical infrastructure and programme management capabilities and focus on creating sustainable funding models through funds and other instruments.

Under the policy, startups in the rural and social enterprise space will be given additional incentives.

As per the policy, there is a plan to develop one million square feet of work space dedicated to startups in the next five years.

The state will partner with 20 global accelerators or incubators in building facilities under the public private partnership mode. Two incubators will also be developed in Tier-II towns in the state.

The Hindu reports that Telangana government enabled startup engine T-Hub, will work as the catalyst in the entire effort to attract the best start ups and entrepreneurs from across the world and will also leverage its extensive network of partners to help entrepreneurs launch and scale innovative companies.

The Telangana government will also set up a master fund to invest in sector-specific and general venture capital funds with an initial target of Rs 2,000 crore, as per a report by PTI.

This master fund is spoken of in the guidelines issued for the Innovation Policy.

"Separately, the government will also expedite the launch of its early-stage investing vehicle T-Fund (Telangana Innovation Fund), which is being launched in concert with leading global investors, in collaboration with T-Hub,” says the Policy.

Additionally, it will also launch a T-SEED fund of Rs 250 crore. This will be for entrepreneurs and innovators who need early stage funding. Typically, these are people working on research discoveries and college project ideas.

A professional fund manager will be appointed who will manage the master fund and also raise additional funds, when required, by engaging with financial institutions, venture capital and private equity firms, and High Net-worth Individuals (HNIs)

As part of the policy, a Chief Innovation Officer (CInnO) will be appointed for the state, whose responsibility will be to work across departments and with industry, to incubate, conceptualise and evangelise innovative ideas, according to the policy document.

As per the PTI report, the CInnO will also work closely with T-Fund, and ensure that key ideas with mass impact, that are not immediately fundable from T-Hub perspective, are not left behind.

The state of Telangana has been aggressively pushing for innovation and encouraging startups in the state. It set up T-Hub, a first of its kind startup incubator and accelerator in partnership with private players.

The second phase of T-Hub, a 300,000 square feet facility that will house 900 startups is now being built and is envisaged to be completed within the next five years.

The state also launched a digital wallet T-Wallet, also becoming the first state to do so.

Image: Pranayraj1985

This article has been produced with inputs from T-Hub as a part of a partner program.