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.

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Frequently Asked Questions

Common questions about Angel Funding for Indian Startups in Karnataka State.

The Angel Funding scheme is an initiative by the Department of Industries and Commerce of the Karnataka State Government to provide financial support to startups in the manufacturing sector. It aims to fund 400 innovative technologies and convert them into commercially viable products manufactured in Karnataka by 2025.

Startups registered with a Science & Technology Entrepreneurs Park (STEP), Technology Business Incubators (TBI), R&D Centers, or Institutions for Engineering & Applied Sciences anywhere in the world are eligible to apply for the Angel Funding. However, startups that have already received seed support from the Government of India or other government agencies are not eligible.

The Angel Funding provided will be in the form of an interest-free loan up to 75% of the project cost or a maximum of Rs. 30 lakhs, whichever is less, per startup.

The scope of support includes funding for manufacturing facilities, test marketing, mentoring, professional consultancy, intellectual property rights (IPR) issues, manpower requirements, and any other area deemed necessary by the investment committee.

A committee headed by the Principal Secretary or Commissioner for Industrial Development and Director of Industries & Commerce will identify the eligible startups to receive the Angel Funding.

Interested entrepreneurs can visit the Karnataka Government Department of Industries and Commerce website for more information and to apply for the Angel Funding scheme.

The vision of the Angel Funding scheme is to support 400 innovative technologies from across the world and convert those ideas into commercially marketable products that will be manufactured in Karnataka by the year 2025.

The Angel Funding scheme will work along with Science & Technology Entrepreneurs Parks (STEPs), Technology Business Incubators (TBIs), R&D Centers, and Institutions for Engineering & Applied Sciences across the world to establish industries in Karnataka.

Yes, the Angel Funding provided by the Karnataka Government under this scheme will be mainly aimed at startups in the manufacturing sector.

The purpose of the Angel Funding scheme is to provide funding options for startups and help build an ecosystem for startups, addressing the lack of funding opportunities and supporting the overall development of the industrial sector in Karnataka.