The Government of Tamil Nadu will create a 100 crore ‘co-creation fund’, a unique Fund-of-Funds model designed to participate in private sector VC Funds. Particular focus will be on funds investing in Regional Startups and sectors like Rural Impact, Women-led, and Climate Action.
The Hon’ble Chief Minister of Tamil Nadu Thiru. M. K. Stalin released the ‘Tamil Nadu Startup and Innovation Policy 2023’, in Chennai on Wednesday, with over 50 action points that will help the State become a leading Startup Ecosystem.
The focussed initiatives will result in groundbreaking innovative and wealth-creating ventures while giving equal importance to creating socially impactful enterprises by individuals from all walks of life. Specialists will manage the fund, and the government will contribute a percentage based on its theme.
“If a new private entity wants to set up a venture capital fund in the state, the government will share the cost and also help them in setting it up provided they satisfy the determined criteria through the co-creation fund” Sivarajah Ramanathan, mission director and CEO, StartupTN said.
The Policy forms the base to propel the role of Startups in realizing the State’s vision of emerging as a USD 1 Trillion economy by 2030. The Policy was released in the presence of the Hon’ble Minister for Micro, Small, and Medium Enterprises Thiru. T.M.Anbarasan; Chief Secretary Thiru. Shiv Das Meena, I.A.S.; Secretary to Government, MSME Department, Thiru. V. Arun Roy, I.A.S.; StartupTN Mission Director and CEO Thiru. Sivarajah Ramanathan and other higher officials.
TANFUND’ a Startup-Investor aggregator platform will be launched to connect national and international investment agencies with Tamil Nadu Startups, with structured back-office facilitation.
Ventures by persons from socially marginalized communities that apply proven innovative techniques in other sectors for the betterment of the socio-economic conditions of their communities will also be considered Startups. This is in addition to the existing criteria of a Startup.
The Government of Tamil Nadu will contribute 40% (with a ceiling of INR 10 crore) in Regional, Rural Impact, Women, and Climate Action-focused funds and 20% (with a ceiling of INR 5 crore) in other thematic funds promoted by the private sector. The fund size should be INR 20 crore and above in case of a new fund.
Startup TN aims to achieve an innovative ecosystem in the State by joining hands with every Stakeholder. The Vision of the policy is to attract entrepreneurs and investors from across the globe and make the State the “Knowledge Capital” and “Innovation Hub”.