Angel Funding for Indian Startups
Angel Funding for Indian Startups
The Karnataka State Government, through the Department of Industries and Commerce, has announced Angel Funding for Indian startups. The angel fund will be disbursed to startups that are identified by a Committee headed by the Principal Secretary or Commissioner for Industrial Development and Director of Industries and Commerce. The angel funding provided by the Karnataka Government under this scheme will be mainly aimed at startups in the manufacturing sector.
Introduction
The Department of Industries and Commerce of the Karnataka State Government acts as a catalyst for the overall development of the industrial sector and has announced a scheme for angel investment into startups in the manufacturing sector. The lack of funding options for startups and the need to build an ecosystem for startups has to lead to the creation of an angel fund for Indian startups by the Karnataka Government. The vision of the fund is to support 400 innovative technologies developing across the world and convert those ideas into commercially marketable products that will be manufactured in Karnataka by the year 2025.
To achieve the vision, financial support for upscaling and commercialization of the ideas and technologies will be provided to startups through Government-sponsored Trust or Section 8 Company. Further, the fund will work along with Science & Technology Entrepreneurs Park (STEP), Technology Business Incubators (TBI), R&D Centers and Institutions for Engineering & Applied Sciences across the world to establish industries in Karnataka.
Eligible Startups
Startups anywhere in the world that are registered with a Science & Technology Entrepreneurs Park (STEP), Technology Business Incubators (TBI), R&D Centers and Institutions for Engineering & Applied Sciences are eligible. In addition, register the startup with a STEP or TBI that is under an institution of higher studies and got recognition from the Government of India.
Startups that have already availed seed support from the Government of India or other Government Agency is not eligible to participate in this program.
Scope and Amount of Funding
The scope of support would include manufacturing facility, test marketing, mentoring, professional consultancy, IPR issues, man-power requirement, and any other area deemed necessary by the investment committee.
The angel funding provided will be in the form of an interest-free loan to the extent of 75% of the project cost or a maximum of Rs.30 lakhs, whichever is less, per startup.
Applying for Angel Funding
Identification of the startups eligible to receive this angel funding will be done through a committee headed by Principal Secretary or Commissioner for Industrial Development and Director of Industries & Commerce. Interested entrepreneurs can visit the Karnataka Government Department of Industries and Commerce website.
Download the Angel Funding Scheme Notification.
