New policy to boost 25,000 startups, innovations outside Bengaluru

The Cabinet on Thursday approved the Karnataka Startup Policy 2022 to “stimulate” 25,000 startups with a slew of incentives, including a venture capital fund of Rs 100 crore to push innovations in disruptive technologies.

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

There’s a big focus in the policy on Beyond Bengaluru with incentives for startups to operate outside the crowded state capital.

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Karnataka, which came up with its first Startup Policy in 2015, has over 15,000 startups.

The Rs 100 crore venture capital fund will support "emerging innovative and deep tech startups in artificial intelligence, machine learning, electric vehicles, medtech, robotics, drones and other such disruptive technologies across all sectors”. To promote women entrepreneurship, 25% of this venture capital fund will be earmarked for women-led startups.

A dedicated Beyond Bengaluru Cluster Seed Fund will enable scaling up of startups in emerging technology hubs of Mysuru, Hubballi and Mangaluru.

The policy offers 100 per cent reimbursement of state GST for Beyond Bengaluru startups, incubated in government-backed incubators, with a maximum annual turnover of Rs 1 crore within the first three years of being incubated.

The government will set up 50 New Age Incubation Network (NAIN) centres in technology colleges located outside Bengaluru. The government will fund up to Rs 5 lakh per student project for a maximum of 10 projects in a year for three years.

To foster industry-academia partnership, the government will fund Rs 10 crore over five years to set up technology business incubators (TBI).

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Also, each startup - 50 every year - will get a subsidy of up to Rs 1 lakh as internship fees to hire three interns from Beyond Bengaluru for a minimum of six months.

Under the Elevate Idea2PoC scheme, a one-time grant of Rs 50 lakh will be provided to startups.

A one-time capital grant of up to Rs 50 lakh (excluding land and building) will be provided to set up incubators outside Bengaluru by private entities.

Rural Innovation Centres at government colleges outside Bengaluru will get funding of up to Rs 15 crore. Startups from Kalyana Karnataka will get nurturing.

The policy promises support to startups of SC, ST, OBC and minorities. Also, the Centre of Excellence for Assistive Technology (AT) will get Rs 15 crore to develop innovative products and solutions for the differently-abled and senior citizens.