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March 27, 2013

Fund Alert: Karnataka proposes Rs.1,000-Cr ICT Innovation Fund

Karnataka is set to launch a Rs.1,000 crore fund to help create 1,000 startups in the next seven years. The fund is conceived on the Israeli model, which has successfully spawned many startups. The proposal by Karnataka Information Communication Technology Group 2020, submitted to the government, says the fund must have a contribution from both central and state government and banks and PE funds. The ICT Innovation fund (ICTIF), comprising an R&D fund, seed fund, growth fund and a debt fund, will be managed by a group of people including internal project evaluation committee, an investment committee and the board of state run venture fund Kitven.

Among other things such as infrastructure development activities, the report also proposes to spend Rs.146 crore to build incubation facilities, launch business plan competition, give startups subsidized memberships to industry bodies, provide access to events and roadshows and partner with Nasscom. Part of the infrastructure development activity includes providing free wi-fi in Bangalore. 

Source: NextBigWhat

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