Tamil Nadu, the most developed state of South India, is riding on the progress chariot these days. Tamil Nadu government has opened the treasury for the industry. Tamil Nadu government is soon going to set up a 100 crore ‘co-creation fund’ which will prove to be a unique model designed to get the private sector to participate in venture capital (VC) funds. As per the details of ‘Tamil Nadu Startup and Innovation Policy 2023’ released by the Chief Minister of Tamil Nadu, Shri MK Stalin, Tamil Nadu Startup and Innovation Mission (StartupTN) will be launched to start innovative industries.
The state government will bear 75% and 50% of the setup cost. The operations will be managed by the fund promoters. The fund is inspired by the Yozma model, which was established in Israel in the 1990s to launch innovative industries by investing in new venture capital funds.
The Chief Minister also handed over approval orders for investment of Rs 10.85 crore in eight startups run by SC and ST.
The state is also creating TANFUND, a startup-investor aggregator platform to connect national and international investment agencies with Tamil Nadu startups with a structured back office facility.
Additionally, the policy also emphasizes on setting up ‘Global Coordination Centres’ in potential countries across the world to connect resources including funding, mentorship and market access with Tamil Nadu startups.
MSME Promotion Council appreciates this new policy of Tamil Nadu Administration. With such progressive thinking, the MSME sector will continue to move forward on the path of success.
