CHENNAI:
The Tamil Nadu Government will create a Rs 100 crore Fund of Funds, called the Tamil Nadu Co-Creation Fund, for investing in regional and thematic funds, according to ‘Tamil Nadu Startup and Innovation Policy 2023’ , which was unveiled by Chief Minister M K Stalin. The Fund, to be managed by respective investors and coordinated by StartupTN, is inspired by the Yozma (meaning ‘initiative’) model, established by the Israeli Government in the 1990s to kick-start innovative industries by investing n new venture capital funds.According to the Policy, released at the Secretariat here on Wednesday, 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 operations will be managed by the fund promoters.
The Chief Minister also handed over sanction orders for investments to the tune of Rs. 10.85 Crore in eight Tamil Nadu-based Startups that are run by entrepreneurs from the Scheduled Caste and Scheduled Tribe communities. The investment from the Government brings more credibility to the Startups, helping them acquire new clients and expand to more markets, a release stated.
Designed to nurture Startups, the policy, which has over 50 action points, will help the State become a leading Startup Ecosystem. It will accelerate start-ups growth, make them globally competitive and increase their share in the state GDP and social capital. It defines and strengthens the seven determinants of the Startup Ecosystem - Startup Literacy; Innovation Landscape; Startup Support Centres; Access to Market; Investment Ecosystem; Stakeholder Engagement and Equitable Growth.
Ther 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 beconsidered as Startups. This is in addition to the existing criteria of a Startup, according to the policy.
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.
The eight start-ups include 70 MM DigiversePvt. Ltd (Rs 1 crore), a data asset management company for the entertainment industry, providing backup services at the production stage and archival services as well; Lemurian Ventures Pvt. Ltd. (Rs. 80 Lakh, which specialises in packaging and selling dry fish sourced out of Ramanathapuram; Enthu Technologies Pvt. Ltd. (Rs. 3.5 Crore) a start-up into research and development, and manufacture of IOT devices using the LORAWAN protocol; Auckam Technologies Pvt. Ltd, (Rs 2 crore) which designs and manufactures electronic products like water flow meters, home automation devices, IOT-based devices and industrial automation solutions.
The others include Vervai Food Products Pvt. Ltd. (Rs 25 Lakh), which is into up-cycling of second-grade and cosmetically-damaged vegetables into edible value-added products with an aim to improve farmers' income, while retaining the nutritive value of the products; KSU HarnexonPvt. Ltd.(Sector: Industrial Services) (Rs. 1.2 Crore), an industrial wire harnessing company, primarily for the manufacturing and textile industries; VayurathaPvt. Ltd. (Rs. 1.6 Crore), a 3-D printed and assembled drone manufacturer with a focus on the agricultural sector, specifically manufacturing drones for small-scale farmers; and IcamTechnosysPvt. Ltd. (ST) (Rs. 50 Lakh), which creates a B2B e-commerce platform (Tribal Mart) for tribal-made products. This platform can potentially help the tribal communities earn more from their products.