Karnataka government on Monday unveiled a booster kit to startups in the state in a bid to boost the startup ecosystem.
This comes nine months after the government had announced its Start-up policy. The booster kit contains software tools, cloud credits, access to mentors, legal and consulting accountants and access to government funding and government supported incubators for all the startups registered with it.
Announcing this at a media conference on Monday, Minister for Information Technology and Biotechnology Priyank Kharge said financial support equivalent to approximately Rs. 400 crore in the form of grant, equity through various funds to startups, micro and small enterprises in IT, BT, and other manufacturing sectors will be rolled out in the next four years.
Besides, the department has set up a Fund-of-Funds with an allocation of Rs 200 crore for investing in venture funds that finance technology-based startups.
The minister said a portion of the Fund-of-Funds will be utilised for the angel-stage funding. An investment committee comprising officials and representatives from the industry will be set up to clear applications seeking financial assistance.
“This is the first time in India that a government has come up with a dedicated Start-up Cell guided by the Start-up Policy, which envisages the growth of 20,000 new start-ups, including 6,000 product start-ups, by 2020 in Karnataka,”
said State’s IT and BT Minister Priyank Kharge.
The new minister also said he plans to hold an open house event every month for startups to interact with department officials for addressing issues related to their operations.
The first open house will be held on August 16 at the state-run 10,000 startups warehouse in this tech hub.
“Bengaluru is the second fastest-growing startup ecosystem in the world and the only Indian city to be ranked among the best 15 startup ecosystems the world over,”
The state government has also set up a cell in KBITS to implement policy initiatives and provide incentives for incubating startups.
“A startup portal will soon be launched to educate prospective entrepreneurs on our policy and benefits being offered under the booster kit,”
All the related information regarding policies, to help prospective entrepreneurs can be found on the soon-to-be launched web portal ‘www.startup.karnataka.gov.in’
In partnership with the IT industry’s representative body Nasscom, the state government has set up 725 seats to support incubators in the warehouse, in which 325 seats are available at subsidised rate for setting up startups.