Karnataka Unveils Two Flagship Programmes To Boost Early Stage Startups

Karnataka’s information technology and biotechnology (IT/BT), rural development and panchayati raj’s (RDPR) minister Priyank Kharge has rolled out two flagship programmes to bolster early stage and growth stage startups in the state. 

One of the two programmes, ELEVATE 2024 is a grant aid scheme, providing up to INR 50 Lakh per startup, along with support, including incubation, expert mentorship, incentives, and access to venture capital networks. It also aims to support startups working in various sectors, including deeptech, AI, ML, robotics, blockchain, 5G, IoT, spacetech and cybersecurity among others.

On the other hand, Karnataka Acceleration Network (KAN) is a growth stage-focused accelerator programme, bridging the gap between mentor and mentee. Under it, around 302 startups are likely to benefit from six cohorts in three years. 

Both the programmes align with the state’s aim to push innovation and entrepreneurship. 

“We are confident that ELEVATE and KAN together will empower startups to tackle funding challenges, scale their operations, and solidify Karnataka’s reputation as a leading hub for innovation and entrepreneurship,” said Kharge.

He further said that, since the inception of ELEVATE in 2016, the department has funded more than 950 startups with grants of INR 224 Cr till date.

Along with this, Kharge also launched an event app for Bengaluru Tech Summit 2024 which will be held from November 19 to 21 this year.

This comes at a time when Kharge recently suggested a deeptech innovation cluster in Bengaluru to help grow and scale up startups in this sector.

Not just this, the government is also mulling to offer incentives of up to 25% on capital investments by EV manufacturers.

Earlier this year, the government also unveiled  an INR 20 Cr venture capital (VC) fund to invest in the animation, visual effects, gaming and comics (AVGC) startups. 

Few months back, Kharge also said that Karnataka is expected to attract investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC, and healthtech from the US and Europe. 

Notably, Bengaluru continues to be the top startup hub of India. In the first half of 2024, Bengaluru-based startups raised $1.57 Bn across 134 deals.