Karnataka's New Startup Policy to Offer Rs 100 Cr Fund for DeepTech Ventures, 25% of This for Women led Startups

The state government of Karnataka has announced a new Karnataka startup policy 2022 which will be launched soon to promote 25,000 startups in the next five years. A number of incentives will be offered, including a venture fund of Rs 100 crore, under this policy approved by the Cabinet on Thursday. The policy was prepared by the IT-BT and the Department of Science and Technology.

The new policy, valid till 2027, aims to make Karnataka “the Champion State for startups”, according to a note by the government.

To recall, recently Devjani Ghosh, president of the National Association of Software and Services Companies ( NASSCOM), had said that DeepTech startups received only 11% of total technology investment in India and the sector needs more financing. 

In the new startup policy of Karnataka, venture capital fund of Rs 100 crore will support emerging innovative and deep-tech startups in AI, machine learning, electric vehicles, robotics and drones. 

Startups will also get a lump sum grant of up to Rs 50 lakh.

The new policy aims for 50 New-Age Innovation Networks (NAIN) in higher education technology institutions outside the Bengaluru urban district. Each NAIN will receive support of Rs 5 lakh per student project for three years and Rs 12 lakh annually for operating expenses.

Apart from direct loan of Rs 10 lakh through Niti Karnataka State Mahila Vikas Nigam, 25% of venture capital of Rs 100 crore will be reserved for startups run by women. A Center of Excellence for Assisted Technology will be set up with the help of Rs 15 crore for innovative solutions for the disabled and senior citizens.

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