Tamil Nadu CM launches revamped startup and innovation policy
According to the policy, the state government will create a Rs 100 crore fund called the Tamil Nadu Co-Creation Fund, for investing in regional and thematic funds.
CHENNAI: Chief Minister MK Stalin on Wednesday released the revamped ‘Tamil Nadu Startup and Innovation Policy 2023’, which has over 50 action points to help the state become a leading start-up ecosystem.
According to the policy, the state government will create a Rs 100 crore fund called the Tamil Nadu Co-Creation Fund, for investing in regional and thematic funds. The fund, to be managed by respective investors and coordinated by StartupTN, is inspired by the Yozma model, established by Israel in the 1990s to kick-start innovative industries by investing n new venture capital funds.
A start-up has also been redefined under the policy. Ventures by persons from socially marginalised 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, according to the policy.
According to the policy, the state will contribute 40% (with a ceiling of Rs 10 crore) in regional, rural impact, women and climate action-focused funds and 20% (with a ceiling of Rs 5 crore) in other thematic funds promoted by the private sector. The fund size should be Rs 20 crore and above in case of a new fund. The government will bear 75% and 50% of the fund setup costs, respectively, for the above-mentioned categories.
The CM also handed over sanction orders for investments to the tune of Rs 10.85 crore in eight startups run by SCs and STs. The state is also creating TANFUND, a startup-investor aggregator platform to connect national and international investment agencies with Tamil Nadu startups, with structured back office facilitation. Besides the policy also highlights establishing ‘Global Coordination Centres’ in potential countries across the globe to connect resources including funding, mentorship and market access with Tamil Nadu startups.