The Karnataka cabinet has approved a policy that aims to add 10,000 more startups over the next five years.
Minister of Information Technology and Biotechnology, Dr. C. N. Ashwath Narayan, claims that “the new policy framed by the Department of Electronics and IT/BT has the aim of positioning Karnataka as the “Champion State” for startups and further increasing the number of high-growth startups by 2027.”
The policy approved at the cabinet meeting in Belagavi secures Karnataka’s position as the nation’s innovative hub.
The state’s ultimate objective was to launch 25,000 startups, with a focus on boosting the number of existing high-growth startups. Karnataka currently accommodates 15,000 startups.
The new policy states that a venture capital fund of INR 100 crore will be used to help rising deep tech firms in fields like artificial intelligence, machine learning, electric vehicles, robotics, drones, and other disruptive technologies across all sectors.
The strategy, for the next 5 years, aims to significantly boost start-ups working on environmentally friendly technologies that are also in line with the Sustainable Development Goals and those that support people with disabilities.
Additionally, the strategy would promote facilitating the funding channels that result in institutional investors, angel investors, and government funds investing in startups For start-ups, a one-time grant-in-aid of up to INR 50 lakh would be given.
The goal of the program is to establish 50 new-age innovation networks (NAIN) in technological institutions outside the Bangalore urban district in order to support entrepreneurs beyond the state capital.
For three years, each NAIN will receive INR 5 lakh for student projects and up to INR 12 lakh for annual operational costs.
Additionally, the government has promised to contribute 25% of the total cost, or up to INR 45 lakh, over the course of three years.
For female entrepreneurs the state has added 25% reservation in the INR 100 crore venture capital funds as well as a INR 10 lakh direct loan through the Karnataka State Women Development Corporation.
Depending on their Q-Rate, which is a ranking system for startups recognized by I-Start, according to their potential and investment suitability, a number of additional funding incentives are also available for entrepreneurs.
