According to Karnataka's IT&BT minister Priyank Kharge, Karnataka is the first state in the country to provide grant-in-aid to startups without taking equity in return.
According to the Minister, through the Elevate Scheme, Karnataka has created a platform for start-ups even in Tier 2 and Tier 3 cities. “Interestingly, 24% of fund recipients are from Tier 2 & Tier 3 cities, and 30% are women entrepreneurs.”
"We have also done better than private venture capital firms at a time when the funding industry is still talking about slowdowns due to funding winter," minister Kharge said.
The state government will provide a one-time grant of up to Rs 50 lakh to each startup to encourage innovators who may need early-stage funding.
Minister Kharge said that In the last four years, the State has offered around ₹200 crore to 874 start-ups that operate across various business domains. No State government has done this. In fact, we have done better than private venture capital firms, especially when the funding industry is still talking about a funding winter."
In addition, the state government also initiated special programmes to equip Kalyana Karnataka by enhancing the start-up ecosystem in the region to compete with larger markets.
Around 25 start-ups from Kalaburagi, Bidar, Raichur, Yadgir, Koppal, Ballari, and Vijayanagar districts have benefitted under the Elevate Kalyan Karnataka initiative.
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