StartupTN opens applications for TN Space Tech Fund

CHENNAI:
StartupTN, the state's nodal agency for startups and innovation, has opened applications for the Tamil Nadu Space Tech Fund (TNSTF), a ₹10-crore programme for 2025–26 structured as a 1:1 matching equity fund for early-stage space-technology ventures.

Under the scheme, eligible startups must first secure confirmed third-party investment — from angel investors, venture capital firms, institutional partners or corporates — which the fund will then match rupee for rupee, subject to a cap of ₹50 lakh per company. The design mirrors a growing policy preference for using public money to de-risk private investment rather than replace it.

Funding will be deployed as equity and released in tranches linked to clearly defined milestones. An expert committee will evaluate applications and recommend firms for support, with disbursements contingent on verification and compliance with scheme guidelines.

The fund targets startups operating across a wide spectrum of space-tech domains, including satellite systems, launch and propulsion technologies, ground infrastructure, space data analytics, robotics and artificial intelligence-led applications. The objective is to strengthen research and development pipelines, enable technology validation and help push market-ready solutions towards commercial deployment.

Applicant startups must be registered in Tamil Nadu and recognised by the Department for Promotion of Industry and Internal Trade. They must be engaged in developing or improving products, processes or technologies with clear commercial potential in the space-tech segment.

The fund can be used for activities such as prototype development, product engineering, testing and technology validation — provided these efforts are demonstrably linked to eventual market entry, a release stated.

To avoid misuse, the scheme excludes entities formed through the splitting or reconstruction of existing businesses, as well as subsidiaries, joint ventures or associates of other companies. Indian subsidiaries of foreign or multinational firms are also ineligible. Applicants must have no outstanding government dues and should not have been blacklisted by any public authority.

Applications are being accepted online through StartupTN’s portal, with detailed guidelines and eligibility conditions available on its website. Queries related to the scheme can be addressed to spacetech@startuptn.in