The Tamil Nadu state government introduced special packages on Friday to boost green tech, rural impact and women-led start-ups in the state. The initiative included funds earmarked for them under StartupTN’s flagship grant scheme, Tamil Nadu Startup Seed Grant Fund (TANSEED). It also announced a 50 per cent increase in grants for startups falling under special categories, taking the sum from the current Rs 10 lakh to Rs 15 lakh.
The packages, launched by Chief minister M K Stalin, are expected to boost the efforts of Tamil Nadu Startup and Innovation Mission (StartupTN). The grant will be made in three equal instalments of Rs 500,000, subject to the fulfilment of certain milestones. The scheme has also earmarked 25 per cent of the total TANSEED assistance for women-led Startups and 10 per cent for rural-impact startups. Eligible firms will be provided higher amounts of seed funds as equity or convertible debentures from the Tamil Nadu Emerging Sector Seed Fund Scheme, through an accelerated application processing window.
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The slew of announcements not only includes financial assistance and benefits but also support through structured acceleration for scaling up. Exclusive co-working spaces will be made available at state-supported incubation centres for women-led startups. These facilities shall be available free of rent and membership fee for the first year (up to Rs 200,000). A special entrepreneurship training programme, special women mentorship programme and a portal integrating startup ecosystem enablers are among the gains in store for women-led Startups.
An annual acceleration scheme for women-led startups, fem-tech startups and focussed angel investor circles under the Tamil Angels platform are among the other key features of the package. To avail these benefits, the startups should be owned by women or co-founded by a group of women with at least 75 per cent equity in the enterprise.
Commercially viable infrastructure projects that promote sustainability and circularity will be funded by the Green Climate Fund. StartupTN will set up a government procurement facilitation desk for eligible Startups in Chennai and a regional startup hub in Madurai. The desks will facilitate testing and use of products in government and public agencies, including local bodies.
TANSEED, the flagship scheme of StartupTN, was launched by the state government to support early-stage startups with a seed grant of up to Rs 10 lakh each. Sixty startups have received the grant and have benefited in three editions of TANSEED so far.
Stalin also launched a MentorTN portal (mentors.startuptn.in) on Friday, using which budding startups can approach successful entrepreneurs, seasoned professionals and trusted subject matter experts to learn from their experience and expertise. Mentors guide startups in their early stages, when the latter are more prone to stumble. This strengthens the startup ecosystem by increasing success stories.
