How you can benefit from Government of Karnataka’s startup policy 2016

It’s prime time for startups with the many funding programs and incubation centres aiming to benefit small, new companies with low revenues and high potential for growth. The Government of Karnataka (GoK) is behind many of these schemes and benefits in their startup policy for 2015-2020. (The entire policy is available at the bottom of the page)
Their vision is to create a world-class startup ecosystem in the state through strategic investment and policy interventions leveraging the robust innovation climate in Bangalore.

The Govt. of Karnataka provides generous incentives and funding for startups allocated through new incubation centres, venture capitalists investing in startups, tax exemptions, direct funding in the social impact sector and new college level incubation centres for both tech and biotech startups. These incubators provide office space, equipment and mentoring assistance to new companies based on selection by committees.

To benefit from these, you must be a Karnataka based tech startup and part of the Karnataka Startup Cell (KSUC). You’re eligible for this policy if

•  50% of your workforce is operating in Karnataka
• your revenues are below 50 crores
• your company is less than 4 years old in the IT industry or less than 7 years old in the Biotech industry
• you’re a technology based startup

The policy has something for everyone depending on the size of your company and the field of tech you’re in.

Incubators 

Most of these incubators have a design zone, conference rooms, device labs, IoT labs, event spaces, a pantry and workspaces. The biotech centre has several labs and facilities for microbiology, molecular biology, etc. To apply or for more information, you can visit these links –

Bangalore Bio Innovation Centre   NASSCOM Startup Warehouse 

91 Spring Board                                The GoK IAMAI Mobile 10X startup hub

Infrastructure
– Aims to stimulate growth of 20,000 technology based startups including 6000 product startups by 2020
– Aims to create 6 lakh direct and 12 lakh indirect jobs in the sector

•  The policy aims at supporting entrepreneurship and creating links with the industry at college level through New Age Incubation Centers (NAIN). Institutions and colleges can apply to be incubation centers (new colleges will be selected annually) and will receive up to 40 lakhs. These funds will be used for building infrastructure, providing training and for financial support towards projects.
•  The government will be partnering with institutions of higher learning which have R&D facilities to create Technology Business Incubators (TBI) for newer technologies like IoT and robotics.
•  To create world class incubation infrastructure the government is aiming at private-public partnerships with accelerators and incubators which provide R&D (research and development) labs, biotech facilities, plug and play workspaces where internet access, food, electricity, meeting rooms etc will be provided at subsidized rates for startups.

College startups can apply to the KSUC to join the scheme at startupcell@bangaloreitbt.in.

Investment
  – Aims to mobilize 2000 crores funding for investment in startups through government intervention

•  Entrepreneurs and innovators just starting off with promising ideas can benefit from the Idea to POC scheme under which the government will provide a total of 50 lakhs to individuals or companies in installments measured against milestones. Ideas will be selected by a screening committee twice a year and will undergo periodic monitoring in order to access the financial aid.
•  For companies which are growing and looking for venture funding or angel funding, a Fund of Funds scheme provides investments of up to 2000 crores from the government into credible venture funds and angel networks which invest in startups.

Social Impact
 – Aims to generate 25 innovative technology solutions with social relevance by 2020.

•  In the social sector, The Grand Challenge scheme will benefit startups which have innovative solutions with a social and governance impact. A selection committee will select 5 solutions per year and these startups will be awarded an initial and follow on funding, assistance in implementing the projects, and will be provided incubation space.

The Karnataka start up cell (KSUC) offers many more incentives to companies such as VAT/ST (Value added tax/Service Tax) exemptions, 10% of seats in incubators for women, self-certifications, access to the schemes mentioned above, reimbursements for Patent Spends – upto 2 or 10 lakhs –  and Marketing spends – upto 30%, subsidized seats in govt. supported incubators and participation in govt. sponsored exposure events.

How to apply

 To register with the KSUC, you can go to this link and fill up the online form – http://bangaloreitbt.in/docs/2015/Startup_Policy.pdf
 A representative from the cell will call you back when they review your application.

If you have any more queries or wish to apply for these schemes, you can contact the startup cell at startupcell@bangaloreitbt.in.