Dedicated VC fund for startups on anvil: Kerala CM

THIRUVANANTHAPURAM: Chief minister Pinarayi Vijayan said the government is looking at the possibility of setting up a dedicated venture capital (VC) fund for startups, besides opening the government market for startup consortiums and hiking the special fund for startup development.
A proposal to set up VC fund with the backing of public sector Kerala Bank and Kerala State Industrial Development Corporation (KSIDC) is under active consideration, he said during an interaction with startups founders, organized by Kerala Start-up Mission (KSUM).
Noting that these initiatives would further strengthen the robust relationship between government and startup industry, the chief minister assured that the proposals for startups announced in state budget for 2021-22 would be implemented at the earliest.
"It’s the policy of the government to offer necessary financial aid for startups to blossom. The government will consider increasing the special fund for the development of startups. The state will take further measures to enable entrepreneurs to improve their skills," Vijayan said.
"The government will think about earmarking more funds to strengthen the marketing side of startups. They can create a strong impression at national and international levels through expos and industrial cooperation. From this year, the government has decided to form an ‘International Launching Pad’ for startups," he said.
Elaborating on various schemes and events of KSUM, he said women entrepreneurs will get up to Rs 15 lakh as loan. Startups led by women have been given a moratorium of two years for the aid from KSUM.
For facilitating investment of NRIs in startups, there are programmes like annual Seeding Kerala event and monthly Investor Cafe. "Under KSUM’s Fund of Fund scheme, 11 startups have been given aid through Kerala Specific Angel Fund, which is the first-of-its-kind in the country," Vijayan said.
Around 100 startup founders, 70 of them online, made suggestions and demands for further strengthening the startup ecosystem in state.