startup policy presentation version 1 dated 02.3.2016

Karnataka’s Multi-Sector Startup Policy

Department of Information Technology, Biotechnology and Science & Technology

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• Startup Policy • FAQs• Incubators

To create a world-class startup ecosystem through strategic investment and policy interventions, leveraging the robust innovation climate.

Vision

Pull out of an important statistic goes in this area 11pt Georgia italic (white)

20,000 technology

based startups including

6,000 product startups by

2020

6 lakh direct and 12 lakh indirect new jobs in the

sector

Focus on generation of

25 Innovative Technology solutions with social relevance

Mobilizing INR 2000

Crore (USD 333 mn)

funding for startups, by leveraging the Fund of

Funds

Goals

Startup Policy 2015-2020

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Salient Features• Capacity Building Through New Age Incubation Net

work• Fostering links between R&D and Commercializatio

n of Technologies• Taking ideas to Proof of Concept• Creating Incubation Infrastructure • Startup Fund of Funds• Channelizing Innovation for Social Impact• Incentives and Concessions • Enablement Through Startup Cell and Portal• Capacity Building Through Exposure Visits and

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New Age Incubation Network• Who the benefit targets:

– Engineering Colleges, Professional and Post Graduate Institutions in Tier Two Cities.

• What is the benefit: – Grants to support Opp-ex in college incubators.– Annual Financial Support upto 3 Lakhs per project– Upto 10 Projects per college– Training for faculty and students.– Internship Stipends– Exposure to international startup destinations, networking events etc.,

• How the benefit is administered:– Annual Call for selection of new colleges

• For more information: – Contact the Karnataka Startup Cell at: [email protected]

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Technology Business Incubators• Who the benefit targets:

– Institutes of higher learning with well-developed research and development facilities to foster strong links between R&D and Commercialization of Technologies

• What is the benefit :– The State support would be for the initial capital cost for equipment, facilities

and recurring costs of management of TBI for 3 years, extendable by another 2 years

• How the benefit is administered: – The proposal must be submitted by an eligible academic institution that has

adequate expertise and infrastructure to support the TBI– The TBI shall be a registered Trust/Society/Section 8 Company to avail the

incentive.– The Host Institution is to provide land and built up space for the creation of a TBI


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Idea2PoC Funding• Who the incentive targets:

– The scheme enables technology innovators and entrepreneurs to pursue a promising technology idea, and validate proof of concept (POC).

• What is the incentive:– The State support would be in the form of a grant-in-aid– The funding will be released in installments against agreed milestones.– The funding level is up to 50 Lakhs

• How the incentive is administered: – Biannual call for proposals to be made for selection – Selection through State level screening committee – Selected implementation partners to help GoK with the implementation

and periodic monitoring & review• For more information:

– Contact the Karnataka Startup Cell at: [email protected]

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Creating Incubation Infrastructure

• Who the benefit targets: – The state will invite globally and well known accelerators and incubators to

set up world class incubation centers, accelerators or expand existing facilities on a PPP basis.

• What is the benefit :– The Center must provide facilities like R&D labs, common center for

prototyping, common testing/QA/QC labs, design studious and tool rooms, fab labs, biotech wet labs, green houses animal houses, Infrastructure support e.g. CIF, Dry/Wet Labs, Bandwidth, Plug and Play workspaces

– Subsidized seats, Mentor and Investment Connects, Legal and Accounting Services

• How the benefit is administered: – The partner through RFPs or in partnership with Industry Associations


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Startup Fund of Funds

• Who the benefit targets: – A fund of funds will be allocated for investing in venture funds that

invest in startups in various sectors. A portion of the fund of funds shall be utilised for angel stage funding.

• What is the benefit :– Mobilizing Rs. 2000 Crores of funding for investments into startups

through Government intervention alone. • How the benefit is administered:

– Selection of Fund Manager to operate and mobilize funds – Investment committee with experts from Government, Academia and

Industry– Investment in Venture funds with credible background in operating

technology sectors • For more information:

– Contact the Karnataka Startup Cell at: [email protected]

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Channelizing Innovation for Social Impact

• Who the benefit targets: – This grand challenge is for entrepreneurs with workable and scalable

solutions to challenges faced by society. • What is the benefit :

– The winners of the Grand Challenge will be awarded an initial and follow on funding

– Winners will be assisted to implement their pilots– Winners will automatically qualify for incubation space on a

preferential basis. • How the benefit is administered:

– Five Grand Challenges per year – Selection Committee to identify Challenges having Social and

Governance impact – Selection through open competition


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Incentives and Concessions • Once registered under the KSUC your startup shall be eligible

for following incentives– self-certifications for various statutory permissions– VAT/ CST/ ST exemptions– Reimbursements of Patents Spends– Reimbursements of Marketing Spends– Subsidized seats in Govt. supported Incubators, TBIs– A better deal for women entrepreneurs in incubators – Access to Idea to a POC Funding– Participate in Govt. sponsored Exposure Visits– Make a difference through “Grand Challenges”– Avail Funding under GoK Fund of Funds– Other incentives under GoK policies

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Karnataka Startup Cell

• Karnataka Startup Cell has been set up under the Dept. of IT, BT and S&T

• The cell shall act as a single connect for handholding upcoming startups and providing information regarding– Govt. Policy and Incentives – Facilitation in setting up business– Getting statutory clearances– Connect with related Govt. departments for product

validation, clearances, mentorship etc

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FAQs• What is the KSUC?• Why should I register with the KSUC?• How do I register with the KSUC?• Am I a Karnataka Startup?• How does one differentiate a tech- startup?• What are the incentives under the Karnataka Startup Policy?• What does self Certification Cover?• What do VAT/ CST/ ST Benefits cover ?• What do Reimbursements for Patent Spends cover ?• What do Reimbursements of Marketing Spends cover ?• Will I be eligible for Incentives if I am not incubated?• What are the Incubators that are available at subsidised cost?

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What is the KSUC?

• Karnataka Startup Cell has been set up under the Dept. of IT, BT and S&T

• The cell shall act as a single connect for handholding upcoming startups and providing information regarding– Govt. Policy and Incentives – Facilitation in setting up business– Getting statutory clearances– Connect with related Govt. departments for

product validation, clearances, mentorship etc

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Why should I register with the KSUC?

• You should register with KSUC if– You are a Karnataka based startup– If you are looking for incentives under the

Karnataka Startup Policy 15-20

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How do I register with the KSUC?

• Please go to the http://bangaloreitbt.in/docs/2015/Startup_Policy.pdf and fill up the online form

• The representatives from the cell shall call you back

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http://bangaloreitbt.in/docs/2015/Startup_Policy.pdf

http://bangaloreitbt.in/docs/2015/Startup_Policy.pdf

Am I a Karnataka Startup?

• You are a Karnataka startup if:– Yours a Technology based startup– Your revenues are clocking under 50 Cr– Your company/entity is not older than 4 years if

you are IT based and 7 years if you are a BT startup

– More than 50% of your qualified workforce is in Karnataka

– You are not excluded under the other exclusion principles under the policy

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How does one differentiate a tech- startup?

• As per Karnataka Startup Policy a tech- startup is defined as :

“one that creates a technology based service or product or uses technology for enhancing functionality or reach of an existing product or service.”

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What are the incentives under the Karnataka Startup Policy?

• Once registered under the KSUC your startup shall be eligible for following incentives– self-certifications for various statutory permissions– VAT/ CST/ ST exemptions– Reimbursements of Patents Spends– Reimbursements of Marketing Spends– Subsidized seats in Govt. supported Incubators, TBIs– A better deal for women entrepreneurs in incubators – Access to Idea to a POC Funding– Participate in Govt. sponsored Exposure Visits– Make a difference through “Grand Challenges”– Avail Funding under GoK Fund of Funds– Other incentives under GoK policies

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What does self Certification Cover?

• Self certifications shall be permitted under the following Acts and the same shall be facilitated through the startup cell – The Factories Act 1948– The Maternity Benefit Act 1961– The Karnataka Shops &Commercial Establishments Act 1961– The Contract Labour (Regulations & Abolition) Act 1970 – The Payment of Wages Act, 1936 – The Minimum Wages Act 1948 – The Employment Exchanges (Compulsory Notification of

Vacancies) Act 1959– General permission shall be available for women working in the

night shifts

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What do VAT/ CST/ ST Benefits cover ?

• Reimbursement of Service Tax paid by startups incubated in GoK supported incubators and CIFs whose annual turnover does not exceed Rs. 50 Lakhs for the first three years or till the incubator becomes DST certified

• Annual Reimbursement of VAT/CST paid in Karnataka, upto a maximum of Rs. 50 Lakhs turnover by incubated startup companies within a period of first three years of being incubated.

• Reimbursement of VAT/CST on goods supplied to the Incubator or incubatee.

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What do Reimbursements for Patent Spends cover ?

• Domestic Patents: The cost of filing and prosecution of patent application will be reimbursed to the incubated startup companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded.

• Foreign Patents: For awarded foreign patents on a single subject matter, upto Rs. 10 lakh (1 Million) would be reimbursed. The reimbursement will be done in 2 stages, i.e., 75% after the patent is filed and the balance 25% after the patent is granted.

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What do Reimbursements of Marketing Spends cover ?

• Government shall provide reimbursements of 30% of the actual costs including travel incurred in international marketing through trade show participation. This incentive will be subject to a maximum of Rs. 5 Lakhs per year per company.

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Will I be eligible for Incentives if I am not incubated?

• Many of these benefits shall be administered through identified incubators as implementation partners in order to speed up the process without compromising on due diligence in disbursal of fiscal incentives. At the same time incubators shall not insist on physical incubation of mentee incubatees so as to ensure greater touch points for incubators being supported by the Government.

• Virtual incubation shall be required for applying for incentives such as VAT/CST/ST Reimbursements, Patent filing Reimbursements, Marketing incentives, Idea to POC funding, Grand Challenges for Social Impact, Fund of Funds. Also for availing support under Exposure Visits programs, priority shall be given to incubatees (under virtual or physical programs) of GoK supported incubators.

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What are the Incubators that are available at subsidised cost?

• GoK IAMAI Mobile 10X Startup Hub• GoK NASSCOM Startup Warehouse• GIFTS Scholarship in 91 Spring Board• Bangalore Bioinnovation Centre

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GoK IAMAI Mobile 10X Startup Hub

Facilities:• Capacity to house and support 70 Plus

Mobile Developers.• Support System Divided into Zones• Testing Zone • Monetization Zone • Design Zone • Play Zone • Also has Video Conf. Room and Common

Meeting Room

Current Status :• 15 Selected Mobile App Start-ups. • How to Apply.: • Visit www.mobile10x.in or contact

Satyendra Verma, COO, Mobile10x,• Mob: +91 99533 37213 • Mr. Aditya Ishan, Head of Operations, GOK-

Mobile 10x Hub, Bangalore, • Mob: +91 74069 99953

Criteria for Selection :• Innovative Mobile Application

Technology Company with high potential

• Less than four years of operation• Less than Rs. 50 cr of Revenue• 50% of Staff being in Karnataka

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91 Spring Board• Facilities:

• Device Lab• Event Space• Hackathon- accelerator Space• Conference Rooms• Pantry• Cowork with bigger startups /

companies and benefit from the community

• Status :

• Capacity for 150 people / “Scholarships”

• How to become a part of the Warehouse:

• Contact: [email protected]

• Apply at: www.91springboard.com

Criteria for Selection :• Innovative Technology Company

with high potential• Lessthan four years of operation• Lessthan Rs. 50 cr of Revenue• 50% of Staff being in Karnataka

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NASSCOM Startup Warehouse• Facilities:• IOT Lab• Device Lab• Event Space• H-accelerator Space• 18 Conference Rooms• Pantry

• Current Status :• Number of Startups currently

residing= 60• Number of Seats occupied= 216


• Apply online: http://10000startups.com/ • Contact Person: • Roopa Aravindakshan,

[email protected] @ 7022214209• Facility located at Diamond District, Old

Airport Road.



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Bangalore Bioinnovation Centre• Facilities:

• Lab Spaces with DG and UPS backup• Plant and Animal Tissue Culture Facility• Microscopy Facility• Molecular Biology Lab• Proteomics and Small Molecule Analysis Lab• Flow Cytometry Facility• Confocal Facility• Lab Support Arrea• Microbiology Labs• Fermentation Facility• Histology Lab

• Current Status :• Around 15 companies are in the process of

signing up and 8 resident companies are operating from BBC

•How to Apply :• Contact Dr. Jitendra Kumar, • MD - Bangalore Bioinnovation Centre• Website: www.bioinnovationcentre.com• email : [email protected]

Criteria for Selection :• Innovative Bio Technology related

with high potential companies• Less than Seven years of operation• Less than Rs. 50 cr of Revenue• 50% of Staff being in Karnataka

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What are the Incubators that are available at subsidised cost?

• GoK IAMAI Mobile 10X Startup Hub• GoK NASSCOM Startup Warehouse• GIFTS Scholarship in 91 Spring Board• Bangalore Bioinnovation Centre

HOME

GoK IAMAI Mobile 10X Startup Hub

Facilities:• Capacity to house and support 70 Plus

Mobile Developers.• Support System Divided into Zones• Testing Zone • Monetization Zone • Design Zone • Play Zone • Also has Video Conf. Room and Common

Meeting Room

Current Status :• 15 Selected Mobile App Start-ups. • How to Apply.: • Visit www.mobile10x.in or contact

Satyendra Verma, COO, Mobile10x,• Mob: +91 99533 37213 • Mr. Aditya Ishan, Head of Operations, GOK-

Mobile 10x Hub, Bangalore, • Mob: +91 74069 99953

Criteria for Selection :• Innovative Mobile Application

Technology Company with high potential

• Less than four years of operation• Less than Rs. 50 cr of Revenue• 50% of Staff being in Karnataka

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91 Spring Board• Facilities:

• Device Lab• Event Space• Hackathon- accelerator Space• Conference Rooms• Pantry• Cowork with bigger startups /

companies and benefit from the community

• Status :

• Capacity for 150 people / “Scholarships”


• Contact: [email protected]

• Apply at: www.91springboard.com



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NASSCOM Startup Warehouse• Facilities:• IOT Lab• Device Lab• Event Space• H-accelerator Space• 18 Conference Rooms• Pantry

• Current Status :• Number of Startups currently

residing= 60• Number of Seats occupied= 216


• Apply online: http://10000startups.com/ • Contact Person: • Roopa Aravindakshan,

[email protected] @ 7022214209• Facility located at Diamond District, Old

Airport Road.



HOME

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Bangalore Bioinnovation Centre• Facilities:

• Lab Spaces with DG and UPS backup• Plant and Animal Tissue Culture Facility• Microscopy Facility• Molecular Biology Lab• Proteomics and Small Molecule Analysis Lab• Flow Cytometry Facility• Confocal Facility• Lab Support Arrea• Microbiology Labs• Fermentation Facility• Histology Lab

• Current Status :• Around 15 companies are in the process of

signing up and 8 resident companies are operating from BBC

•How to Apply :• Contact Dr. Jitendra Kumar, • MD - Bangalore Bioinnovation Centre• Website: www.bioinnovationcentre.com• email : [email protected]

Criteria for Selection :• Innovative Bio Technology related

with high potential companies• Less than Seven years of operation• Less than Rs. 50 cr of Revenue• 50% of Staff being in Karnataka

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startup policy presentation version 1 dated 02.3.2016

Small Business & Entrepreneurship