The Karnataka Cabinet approves INR 100 crore venture capital fund for startups
- ByTejika Bajaj | December 21, 2021
The Karnataka State Cabinet recently approved the setting up of a INR 100 crore venture capital (VC) fund to help cement Karnataka’s pole position in innovation and to support emerging technology firms.
While the government will provide Rs 25 crore, the rest will come from institutions. Chief Minister Basavaraj Bommai is taking ahead a budget announcement his predecessor BS Yediyurappa made on March 8, this year.
This is a sector agnostic fund. Any startup with a technological intervention can apply for funding support, officials in the government expressed in a statement. There are other venture funds in operation, but this one cuts across sectors with tech intervention.
The cabinet also decided to encourage startups emerging from tier two cities and those started by women entrepreneurs. In its first year, the government will allocate 25% each of the fund to startups in tier two cities and those founded by women entrepreneurs.
Companies that are registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and that meet the criteria of a start-up definition and policies of the state are eligible to apply for funding support.
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