Chief Minister of Karnataka BS Yediyurappa said that the state government would set up a new venture capital fund to support emerging technology firms and cement Karnataka’s pole position in innovation.
With three venture funds already focusing on biotechnology, animation, visual effects, semiconductors, electronic manufacturing, as well as gaming and comics, Karnataka will tap family offices and high net-worth individuals (HNIs), for its Rs 100-crore start-up fund.
In the budget speech of March 8, Chief Minister of Karnataka BS Yediyurappa said that the state government would set up a new venture capital fund to support emerging technology firms and cement Karnataka’s pole position in innovation. While the government will provide INR 25 crore, the remaining 75 crores will come from private investors and institutions. The new fund will be sector-agnostic and will invest in start-ups that show potential to scale up.
The government will soon invite start-ups for early-stage investments as soon as the requisite database is ready. The government is confident, given the impressive performance of their operational funds, that private investor will back the new fund. The department is working to organize interaction between family businesses and HNIs, and some successful start-ups that are also winners of Elevate 100, a program that identifies and handholds start-ups that show caliber and helps them grow. The state usually funds Rs 2.5-Rs 3 crores in equity support for shortlisted start-ups, rest comes from non-state funding.
Source: Business World
