The Karnataka government has announced plans to launch a fund for tech startups in the country. During a recent media interaction, the state’s IT Minister Priyank Kharge invited startups from across India to register in Karnataka.
As stated by Kharge, entrepreneurs can avail the proposed funding by registering their companies under the Karnataka Shops and Commercial Establishment Act, 1961.
Commenting on the development, the Minister for Information Technology, Biotechnology and Tourism said, “We want to take our startup policy to the national level this year. We will support startups from across the country provided they pay taxes here.”
According to Kharge, around 5,000 startups have registered with the Karnataka government so far, of which about 250 companies received funding in 2017. The IT Minister, however, did not disclose specific details about when the new fund will be launched
How Karnataka Is Creating A Startup Ecosystem That Can Rival Silicon Valley
The Karnataka government’s efforts to facilitate entrepreneurship in the state can be traced back to 2015, when the Karnataka Startup Policy was launched with a vision to stimulate the growth of 20,000 tech startups by 2020. The state government has also launched several startup-focussed funds that together have a corpus of $47.3 Mn (INR 300 Cr).
In July 2016, the state launched a number of schemes, which included a $60 Mn fund, and a startup cell in Karnataka Biotechnology, and Information Technology Services, all geared towards bolstering the state’s startup ecosystem. In September 2016, the Karnataka Startup Cell poured $300K (INR 2 Cr) into eight startups in the tourism sector.