State VC fund for start-ups on anvil, to open up govt market: Kerala CM

Kerala Chief MinisterPinarayi Vijayan on Tuesday said his government was lookinginto the possibility of setting up a dedicated Venture Capital(VC) fund for start-ups, besides opening up the governmentmarket for startup consortiums and hiking the special fund forstartup development.

A proposal to set up the VC fund with the backing ofpublic sector Kerala Bank and Kerala State IndustrialDevelopment Corporation (KSIDC) is under active consideration,hesaid during an interaction with start-ups founders,organised by Kerala Startup Mission (KSUM) here last evening.

Noting that these initiatives would further strengthenthe robust government-startup relationship, the CM said theproposals for start-ups announced in the state budget for2021-22 would be implemented at the earliest.

''It is the policy of the government to offer necessaryfinancial aid to startups to blossom.

The government will consider increasing the special fundfor the development of start-ups. Besides, the state will takefurther measures to enable entrepreneurs to improve theirskills,'' Vijayan said.

The government would think about earmarking more funds tostrengthen the marketing side of startups.

''They can create a strong impression in the national andinternational level through expos and industrial cooperation.

From this year the government has decided to form an'International Launching Pad' for startups,'' he added.

Elaborating on various schemes and events of KSUM,Vijayan said women entrepreneurs would get upto Rs 15 lakh asloan.

Startups led by women have been given a moratorium of twoyears for the aid from KSUM.

For facilitating investment of NRIs in startups, thereare programmes like annual Seeding Kerala event and monthlyInvestor Cafe.

The Chief Minister said startups have already been givencomplete exemption in their rent for four months and therewill be a partial exemption in the rent amount for the nextthree months.

''Under KSUM's Fund of Fund scheme, 11 startups have beengiven aid through Kerala Specific Angel Fund, which is thefirst-of-its-kind in the country,'' he added.

According to startup circles, the move would enable morestart-ups to participate in big government tenders.

This is a novel model to bring business to startupsthrough the government.

The budget also has proposed to bring in startupinnovation zones in government departments, which will helpevolve problem-solving innovations for the benefit of thepublic.

Around 100 startup founders, 70 of them online, madesuggestions and demands for further strengthening the startupecosystem in the southern state.

KSUM is the nodal agency for entrepreneurship developmentand incubation activities in the state.