TN marching ahead in Startups, Stalin announces Rs 100 cr co-creation fund for support

Startups continue to be the buzz word and Tamil Nadu can’t be any different. Chief Minister MK Stalin on Thursday announced the setting up of a Rs 100 crore co-creation fund, invested in venture capital, to support and strengthen a vibrant atmosphere for startups in the state.

Managed by the TN Startup and Innovation Mission (StartupTN), the fund would be invested in venture capital funds for flow of investments to startups established in the state.

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“To strengthen Tamil Nadu’s startup ecosystem, I would like to announce a new scheme – a co-creation fund with an initial allocation of Rs 100 crore. It will be managed by StartupTN,” he said, inaugurating the Global Startup Summit in Coimbatore.

“Not only big industries, MSMES and Startups are critical to the State to achieve the goal of One trillion-dollar economy by the year 2030 and the Dravidian Model Government is diligently working towards toward that,” he added.

“From a meagre 2032 companies four years ago, Tamil Nadu has reached the top with a six-fold increase with over 12,000 startups at present. And over 50 per cent of them are founded and led by women,” he pointed out adding “with the government spreading startup awareness across the State, its new age entrepreneurship schemes should reach all sections of society, including women and the marginalised as well as transgenders. For, social justice is the fulcrum even in the startup policy of the government.”

“In 2018, Tamil Nadu was ranked at the bottom among the country in startup infrastructure. In just four years, the State had reached the top spot with the best startup ecosystem. At present, Chennai ranks 18th in Asia, according to the report of the Global Startup Ecosystem, released by Startup Genome. The Atal Innovation Mission of NITI Aayog has recognised Tamil Nadu as a model state for developing an excellent innovation system,” the Chief Minister said.

The investment raising capacity of startups in the state has witnessed a quantum jump in recent years, reflecting investors’ confidence. And the number of startups from Tamil Nadu in DPIIT has recorded a growth of 36 per cent, while the national average is 11 per cent. Equity investments are extended to entrepreneurs from SC/ST communities with an allocation of Rs 50 crore in 2023-24.

Over 250 participants from India and abroad are taking part in the global summit and Startups from 21 countries have set up their pavilions at the exhibition.