karnataka - ief · • the government of karnataka has set up the skill development,...

Entrepreneurship Ecosystem Overview

Karnataka

1

Levers of change ndash Entrepreneurship

Following are the key levers of change which determinewhether a statersquos policy education legal framework financialsystems business markets cultural and social ethos areaugmenting Entrepreneurship Growth

1 The Entrepreneur

2 Govt amp Regulatory Support

3 Access to Finance

4 Educational amp Cultural Preparedness

5 Mentoring amp Networking

2

The Entrepreneur

3

Karnataka ranks 8 in India on lsquoEase of Doing Businessrsquo

index of 2017-18 according to the Department of Industrial Policy andPromotions (DIPP) It features among lsquotop achievers lsquo category on theindex

4

Govt amp Regulatory Support

5

Schemes

bull Rajiv Gandhi Udyami Mitra Yojana (RGUMY)bull i4 Policybull Kaushalya Karnataka Schemebull Karnataka SEZ Policy 2009bull Karnataka Retail Trade Policy 2015

6

Rajiv Gandhi Udyami Mitra Yojana(RGUMY)

The objective is to provide information support guidance andassistance to first generation entrepreneurs as well as other existingentrepreneurs through an lsquoUdyami Helplinersquo(toll free no 1800-180-6763) to guide them regarding various promotional schemes of theGovernment procedural formalities required for setting up and runningof the enterprise and help them in accessing Bank creditetc httpwwwmsmedibangaloregovin

7

i4 Policy- IT ITES Innovation Incentives Policy

bull The policy aims to make Karnataka as the preferred global investmentdestination for ITITESBPOKPO sectors

bull Under the policy the state government will provide IT companies withland with respect to the number of jobs they create It will also providethem with single window clearance exemption from Karnataka IndustrialEmployment rules etc

bull IT amp ITeS Start Ups will be eligible to rent spaces with internet atconcessional rates of Rs5-15 per square feet

8httpitbtkarnatakagovinDocumentsi4-policypdf

Kaushalya Karnataka Scheme

bull Kaushalya Karnataka is an ambitious skill development scheme of stategovernment of Karnataka under which unemployed youth would beprovided skill training to encourage self employment

bull The government of Karnataka has set up the Skill DevelopmentEntrepreneurship and Livelihood Department (SDEL) to help the youth toacquire necessary skills and expertise to increase their employability Itsaim is to undertake the functions of regulation standardisationpromotion implementation and monitoring of all skill developmentinitiatives in the state

9httpwwwkaushalkarcom

Karnataka SEZ Policy 2009

The prime objective of the Policy is to facilitate amp expedite establishmentof SEZs at the same time safeguarding the environment and the interestsof land owners The Policy provides for a package of incentives supportivemeasures besides clarity on procedural guidelines

10

httpwwwsezindianicinwritereaddatastatePoliciesstate20policy20of20sez2020091pdf

Karnataka Retail Trade Policy 2015

bull The policy aims at attracting new investments including foreign directinvestment (FDI) and creating additional employment opportunitiesexclusively in retail sector

bull The retail policy will ensure ease of business for retailers through a singlewindow system

bull Relaxation of stocking limits for essential commodities prescribed underthe Essential Commodities Act 1955 on a case-to-case basis will be done

bull It will also help in creating awareness among the youth especially those inrural areas about the opportunities in the retail sector

11

httpwwwinvestkarnatakacoinassetsdownloadsretail_trade_policy_2015pdf

Access to Finance

12

Schemes

bull New Industrial Policy 2014-2019bull Karnataka Agri-Business amp Food processing Policy 2015bull Karnataka Startup Policy 2015-2020

13

New Industrial Policy 2014-19The policy aims to improve the financial prospects of the state andalleviate poverty through inclusive sustainable and balanced industrialdevelopment The objective is to increase the manufacturing sectorrsquoscontribution to the State GDP to 20 by 2019 and create additionalemployment for 15 lakhs people by 2019 various incentives under thenew industrial policy have been kept for the entrepreneurs Some ofthem are

bull Interest Free Loan to Large Mega Ultra Mega and Super Megaenterprises on Net VAT and CST

bull Investment Promotion Subsidy

bull Stamp Duty Exemption amp Concessional Registration Charges

bull Interest subsidy

bull 100 Exemption from Tax on Electricity Tariff

bull Incentives for Technology Up-gradation Quality Certification for MSMEshttpwwwinvestkarnatakacoinassetsdownloadsindustrial-policypdf

14

Karnataka Agri-Business amp Food processing Policy 2015

The policy aims to achieve sustainable growth in the food sector in thestate by creating enabling frameworks infrastructural facilties andenhancing produce along with revenue Fiscal incentives for setting upfocused industrial clusters and food processing parks-


bull Exemption from Stamp Duty for MSME

bull Concessional Registration Charges for MSME

bull Reimbursement of land conversion fee for MSME amp VAT to MSME

bull Exemption from Entry Tax

bull Subsidy for setting up Effluent Treatment Plant (ETP)

bull Exemption from tax on Electricity tariff

15httpwwwinvestkarnatakacoinassetsdownloadsagriculture-policy-2015pdf

Karnataka Startup Policy 2015-2020The policy aims to create a world-class startup ecosystem through strategicinvestment and policy interventions leveraging the robust innovationclimate in Bangalore It provides the following benefits to entrepreneurs-

bull New Age Incubation Network Grants are to be given to support Op-ex incollege incubators The faculty amp students will get training and thestudents to get internship stipend

bull Technology Business Incubators The state support would be for the initialcapital cost for equipment facilities and recurring costs of management ofTBI for 3 years which is extendable by another 2 years

bull Idea to Proof of Concept Funding The scheme enables technologyinnovators and entrepreneurs to pursue a promising technology idea andvalidate proof of concept (POC) Grant-in-aid under this will be upto 50lakhs

16

bull Startup Fund of Funds A fund of funds will be allocated for investing inventure funds that invest in startups in various sectors A portion of thefund of funds shall be utilised for angel stage funding Fund-size will beINR 200 Crores

bull Idea2POC Fund Technology based sectors will get this funding Fund sizeupto INR 50 Lakhs

bull Kitven Fund 3 is a biotech focused fund of size upto INR 50 Crores

bull Karsemven Fund is an INR 100 Crore Fund focused on SemiconductorElectronics System Design amp Manufacturing (ESDM) Embedded Systemsand such other allied sectors

17

Incentives and Concessions under the startup policy

bull Self-certifications for various statutory permissions

bull VAT CST ST exemptions

bull Reimbursements of patents spends

bull Reimbursements of marketing spends

bull Subsidized seats in Govt supported incubators

bull A better deal for women entrepreneurs in incubators

bull Access to idea to a POC Funding

bull Participate in Govt sponsored exposure visits

bull Make a difference through ldquoGrand Challengesrdquo

bull Avail funding under the Government of Karnatakarsquos fund of funds

bull Other incentives under the Government of Karnataka policies

18httpstartupkarnatakagovin

VCrsquosAngelsOther Institutions

bull Karnataka Information Technology Venture Capital Fund (KITVEN Fund) isa State amp Central Government financial institutions backed Venture CapitalFund (VCF)The Fund received subscription from premier institutions likeKarnataka State Industrial and Infrastructure Development CorporationLimited - KSIIDC Karnataka State Financial Corporation - KSFC SmallIndustries Development Bank of India - SIDBI Karnataka Bio-technology ampInformation Technology Services (KBITS) etc httpwwwkitvencom

bull Seedfund is an early-stage venture capital fund with operations inBombay Bangalore and New Delhi They have huge connection in areaslike advisors mentors consultants evangelists managers andfounders httpseedfundin

bull Omnivore Partners Omnivore invests in startups from India developingbreakthrough technologies for food agriculture and the rural economyhttpwwwomnivorevc

19

bull GrowthStory is an investment firm that has founded and led four greenfield startups nine fund raises from institutional VCs four successful exitsto companies listed in India UK and the US and seven MampA transactionshttpswwwgrowthstoryin

bull Unitus Seed Fund is the leading seed venture fund supporting startupsinnovating for the masses in India Unitus is backed by multiple leadershipinvestors including TV Mohandas Pai Dr Ranjan Pai Vinod Khosla BillGates Steve Singh Desh Deshpande Romesh Wadhwani Michael DellHemendra Kothari and more httpsusfvc

bull Accel Partners is a global venture capital firm engaged in multi-stageinvestments in internet technology companies httpswwwaccelcom

bull Sequoia Capital have been an active investor in a number of Indianstartups and have been seen pretty active in the Bangalore startupecosystem httpswwwsequoiacapcomindia

20

bull Kalaari Capital is a $160 Mn venture capital fund with a strong advisoryteam in Bangalore investing in early stage technology-oriented companiesin India httpwwwkalaaricomtp=1

bull Rebright Partners is an Asia focus early stage venture capital firmhttprebrightpartnerscomenabout-us

bull Helion Venture Partners is a $605 Mn stage independent India-focusedventure fund investing in high growth technology powered and consumerservice businesses in sectors like Outsourcing Internet MobileTechnology Products Retail Services Healthcare Education and FinancialServices httpwwwhelionvccom

bull Nexus Venture Partners invests in early stage companies and has offices inIndia and Silicon Valley It has over $600 Mn under management and anactive portfolio of over 50 companies across technology internet mediaconsumer business services sectors httpsnexusvpcom

21

bull IDG Ventures India is an India-focused technology venture capital fundThe fund is part of IDG Ventures a global network of technology venturefunds with more than $4 Bn under managementhttpwwwidgvcindiacom

bull Ventureast is a pioneering Indian venture capital firm with close to $300Mn under management Ventureast Tenet Fund is the first-of-its-kind Co-creation Venture Capital fund focused on disruptive technology (CloudMobile and Internet) and technology-enabled services startups in theHealthcare Financial Services and Educationsectors httpwwwventureastnet

bull Qualcomm Ventures is the investment arm of Qualcomm Inc A Fortune500 company with operations across the globehttpswwwqualcommventurescom

22

bull Pallav Nadhani an angel investor is the co-founder and CEO of FusionCharts RazorFlow and is CEO at Collabion Few of the startups he hasinvested in includes Plivo Azoi Inc iDubba etchttpswwwlinkedincominpallavnppe=1

bull Sharad Sharma is the former RampD head of Yahoo India He activelymentors startups and speaks frequently on industry issues Sharad hasbeen an investors in a number of startups few of his investments includeFrrole Mobilewalla HashCube Kwench Libraryhttpswwwlinkedincominsharadsharma

bull Manish Singhal is an entrepreneur and an angel investor with technologybackground Few of his angel investments include Ecosense India CollegeSearch GoCoop AdSparx Bluegape Frrole FlipClass and AdPushUphttpswwwlinkedincominsmanishsinghal

23

bull Venkat Raju Venkat Raju is an active angel investor and also serves as amentor amp advisor to his investee companies His current investmentscover a wide area spanning Cloud Computing and SaaS Big Data andAnalytics Mobility and Payments and next-genecommerce httpswwwstartupbootcamporgmentorsvenkat-raju

bull Ganesh Krishnan is a serial entrepreneur with four successful green fieldventures and exits He is a strategic investor promoter of India basedconsumer Internet and ecommerce companies bluestonecom (onlinejewellery) Bigbasketcom (egrocery)httpswwwlinkedincominganeshk

bull Ravi Gururaj is a serial entrepreneur with 5 ventures and 2 public exits anangel investor a mentor to numerous entrepreneurs technologyexecutive and ecosystemevangelist httpswwwlinkedincominrgururaj

24

bull Amit Gupta has been a serial entrepreneur prior to co-founding InMobihe founded Analyticsworks a company that offered a platform forbusiness intelligence

bull Ravi Trivedi is the founder of Srijan Capital which is focused on angelinvestments and hands-on incubation His investments include ndash ExplaraTookitaki Mechmocha Collatebox Venturesity and CouponRanihttpswwwlinkedincomintrivediravi

bull Phanindra Sama had founded RedBus ndash online bus ticket booking servicein 2005 A few of his investments include InnovAccer Venturesity andShieldSquare he also offers mentorship to startups or aspiringentrepreneurs both in his personal capacity as well as through KakatiyaSandbox

25

bull Alok Goel is the CEO of FreeChargein and was a COO of redBusin Indiarsquoslargest online bus ticket booking website As of now he has invested in anangel round funding in Intruocomhttpswwwlinkedincomingoelalok

bull Sachin Bansal founder of Flipkart has been seen actively investing inIndian startups Sachin is a IIT-Delhi alumni and has invested in numerousstartups including Ather TouchTalent Roposo NewsInShortshttpswwwlinkedincominsachinbansal

bull Naveen Tewari started mKhoj a local mobile search firm but later pivotedto a mobile advertising network with a global model which is well knownas InMobi He is investor in tushky moneysights Mettl and LetsVenture

bull Amit Somani is an Advisory Board Member and Chief Products Officer forMakeMyTrip heading the online product portfolio along with UserExperience and Content

26

Education amp Cultural Preparedness

24

Educational Institutions Promoting Entrepreneurship

bull Indian Institute of Management (NSRCEL) Specialization in

bull Entrepreneurship amp Family Businesses amp Women EntrepreneurshipNSRCELrsquos mission is to take ideas to implementation through astructured mentoring programme that helps entrepreneurs createsuccessful business entities out of excellent ideashttpwwwnsrcelorg

bull Xavier Institute of Management amp Entrepreneurship Specialization inEntrepreneurship Development httpwwwximeorgthe-storyphp

bull Centre for Entrepreneurship Development of KarnatakaEntrepreneurship development and skill development upgradationtraining programhttpwwwcedokdwdincontentabout

25

Mentoring amp Networking

30

Startup Incubators Co-Working Spaces

bull TATA First Dot Powered by NEN A platform for promoting mentoringand showcasing Indias most dynamic and youngest entrepreneurshttpwwwtatafirstdotcom

bull Kyron Global accelerator helping entrepreneurs realize the fullpotential of a business idea and develop it to a compelling fundableproposition within four months httpkyronmebrandhtml

bull AWAKE Association of Women Entrepreneurs of Karnataka AWAKE hasa unique approach of lsquoEntrepreneur guiding Entrepreneurrsquo throughvoluntary efforts of successful women entrepreneurs by counselingtraining business incubation mentoring and peer groupsupport httpawakeindiaorgin

31

bull National Entrepreneurship Network (NEN) A community of new andfuture high-growth entrepreneurs by the Wadhwani Foundationhttpnenglobalorg

bull VTPC Karnataka Facilitation amp Incubation Cell It aims to provide basicinfrastructure amp marketing support to budding entrepreneurs in the fieldof export business The Cell would provide office space to promisingexporters and new entrants to the field in the nature of a Business Centrewith vital infrastructure and logistics support on stipulated conditions for aspecified period of timehttpswwwvtpckarnatakagovinactivitiesincubation-cell

bull GoK - NASSCOM Startup warehouse offers a co-working space of 30000sqft facility to support the early stage companies by getting angelinvestors VCs and enterpriseshttpwwwstartupkarnatakagovinincubators

31

bull Karnataka New Age Incubation Network It aims toestablish incubation centrersquos in ICT sector in association with selectedengineering colleges at district headquartershttpwwwictsdskarnatakagovinq=projectnew-age-incubation-network-5Bnain5D

bull TLabs a Times Internet Ltd initiative is an accelerator in India thatoperates a 4 month program with 60+ mentors supporting thecompanies that become part of it It offers USD 50K in investment for8 equity and over $100k worth of free tech tools and infrastructuresupport httptlabsin

bull Microsoft Ventures is a global initiative empowering entrepreneursaround the world Their primary vehicle to empower startups is throughtheir mentor-driven accelerator programhttpsmicrosoftventurescom

32

bull Jaaga is a community arts and technology space in central Bangalore Theyprovide coworking facilities to young tech startups research fellowshipsand meeting space to community service organizations httpjaagain

bull BHiVE Workspace offers coworking spaces in BangaloreIt providean ecosystem for entrepreneurs and startups to take their ideas to thenext level httpsbhiveworkspacecom

bull TechHub creates spaces around the world for tech entrepreneurs to meetwork learn and collaborate and runs a load of great events advicesessions and more httpswwwtechhubcom

bull Bangalore Alpha Lab (BAL) is a vibrant community of entrepreneurscoming together to interact and communicate ideas while they launchtheir startups at BAL Space httpbangalorealphalabin

33

bull Bangalore Coworking Hub is a startup accelerator coworking platformshared office space located in a prime locality in HAL 3rd Stage Bangalorehttpsbangalorecoworkinghubblogspotin

bull CoWork Cafe provides calm inspiring ready to use workspace that haseverything you need to grow your venture and be successful includingsuper fast Internet conference rooms and ITservices httpcoworkcafein

bull Bangalore Startups is an active community helping the entrepreneurs andaspiring entrepreneurs

bull Headstart Network Foundation is the largest network of early stagestartups in India It facilitates entrepreneurial learning hiring marketinginsights and peer mentoring amongst the Startups httpheadstartin

34

Thank You

36

Levers of change ndash Entrepreneurship

Following are the key levers of change which determinewhether a statersquos policy education legal framework financialsystems business markets cultural and social ethos areaugmenting Entrepreneurship Growth

1 The Entrepreneur

2 Govt amp Regulatory Support

3 Access to Finance

4 Educational amp Cultural Preparedness

5 Mentoring amp Networking

2

The Entrepreneur

3



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