Karnataka To Launch Platform Connecting Startups With VC Investors
Date
5/30/2024 2:20:05 PM
(MENAFN- KNN India) Bengaluru, May 30 (KNN) The Karnataka government is planning to create a dedicated platform that will provide direct access for state-born startups to venture capitalists and high net-worth individuals, in an effort to revive investments after a prolonged funding winter.
The proposed platform will benefit hundreds of startups incubated under the state government's Elevate program, which provides grants of up to Rs 50 lakh to selected startups. In the 2023-24 fiscal year, 244 startups received a total of Rs 56.14 crore under this program.
"The only mechanism with the government now is to provide a grant. We want to develop a platform in coordination with private firms to ensure startups get access to credible investors willing to fund them and provide mentorship," said Priyank Kharge, Karnataka's Minister for IT, BT and Skill Development.
Kharge cited the "venture winter" of the last 2-3 years, attributing it to factors like the angel tax imposed by the central government that impacted the startup ecosystem's robustness.
The planned platform is part of a larger Karnataka Acceleration Network aimed at supporting 500 startups. It comes as the state looks to maintain its position as one of India's leading startup hubs.
In the 2024-25 budget, Chief Minister Siddaramaiah announced new initiatives like the Rajiv Gandhi Entrepreneurship Program for early-stage funding, support for women entrepreneurs, and land allocation for agri-startups to bolster Karnataka's startup ecosystem.
With over 14,000 startups, including 63 unicorns, India has the world's third-largest startup ecosystem. Karnataka has consistently ranked among the top performing states in this domain.
(KNN Bureau)
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