Karnataka Introduces Two New Initiatives to Support Startups

Nitin Konde, Varun Bhardwaj

Oct 30, 2024 — 4 min read

Karnataka Launches Two New Programs to Boost Startup Growth

To boost the expansion of early- and growth-stage companies throughout the state, the Karnataka government unveiled two programmes: ELEVATE 2024 and the Karnataka Accelerator Network (KAN).

The initiatives, which were presented by Minister Priyank Kharge on October 28, 2024, demonstrate Karnataka's dedication to developing a systematic startup support system and build on the state's goal of being the startup hub of India.

Sharing his views on the development, Vishal Saurav, XBOOM Utilities said, "In India, forming a startup may just take 5 days but 5 years down the line 90% of them are either closed or struggling to survive. These staggering statistics show that there is an underlying problem which needs to be addressed immediately. Two major challenges that most of the startup’s face are proper guidance to make a plan and liquid funds to execute those plans. If we take technology industry for instance, the main problem that most of the startups face is the initial funding to start their journey which is much more visible if there is a physical product involved. Take an example of a Drone startup, the main challenges they face are initial liquidity which ranges from min 10 lakh to 1 Crore and lack of proper infrastructural support. "

"The Karnataka government’s ELIVATE 2024 and KAN initiative might just be the medicine that required as they are addressing those exact issues which were stated earlier. With more than 15000 registered startups to look out for, these initiatives have all the ingredients to become a big success story," he added.

Sharing similar opinion, Abdul Jaleel, Co-founder of Aspirar Sphere Pvt Ltd said, "It is exciting to learn of the two new initiatives introduced by the government of Karnataka to aid the start-ups. This is an important development for the entrepreneurial ecosystem in our state. Karnataka has been famously known as a center of innovation and entrepreneurship, and with these on board, it further highlights its dedication towards enabling a thriving startup sphere. With the state government providing increased assistance and backing, not only are new ventures being encouraged to take shape but also a culture of creativity is being nurtured."

ELEVATE 2024

The state's premier seed fund programme, ELEVATE 2024, provides awards of up to INR 50 lakh for each firm. It seeks to foster innovation in cutting-edge fields like robotics, machine learning, artificial intelligence, and space technology. The Karnataka Startup Policy 2022-2027 also offers financial support for patenting, quality certifications, and incubation spaces at sector-specific Centres of Excellence throughout the state, all of which are advantageous to businesses. Applications are being accepted on the government's startup site through November 29.

Sahil Chopra, VP, Growth & Marketing, Inflection Point Ventures stated, "ELEVATE 2024 will prove to be quite helpful for startups, offering critical support that will enable them to scale their operations effectively. Recognising innovation as the cornerstone of economic development, and with Karnataka emerging as a nexus for entrepreneurial activity, this financial backing represents not merely an investment in individual ventures but a broader commitment to advancing technology across the state. Complementing ELEVATE 2024, the Karnataka Startup Policy 2022-27 enhances the landscape by providing essential financial assistance for securing patents, obtaining quality certifications, and accessing incubation spaces. These initiatives significantly lower the barriers to entry for startups, granting them the freedom to concentrate on developing innovative solutions while refining their research, growth, and overall development processes."

KAN

By connecting regional accelerators with those in Bengaluru, KAN, the Karnataka Accelerator Network, aims to support growth-stage entrepreneurs outside of the state capital. Over a three-year period, it facilitates resource access and knowledge exchange among six cohorts.

Through organised mentorship, networking opportunities, and funding paths, KAN aims to empower 302 businesses in collaboration with incubators in locations like Mysuru and Dharwad and accelerators like DERBI and Jain Launchpad in Bengaluru. The Department of Electronics, IT, BT, and Science & Technology, along with the Karnataka Digital Economy Mission (KDEM), work together to run the programme.

Minister Kharge emphasised the state's aspirations by pointing out that Karnataka has become a global centre for startups, with 45 of India's 112 unicorns based in Bengaluru alone. "We want to make sure Karnataka is one of the top three startup ecosystems in the world," Kharge said. KAN and ELEVATE both provide organised assistance to help businesses grow, get capital, and bolster Karnataka's position as a leader in innovation.

Bengaluru Tech Summit 2024 Event App

The government also introduced the official Bengaluru Tech Summit 2024 event app in conjunction with these initiatives, improving accessibility for speakers, exhibitors, and delegates. The app, which is accessible on both iOS and Android, highlights Karnataka's emphasis on digital inclusion and accessibility for guests from around the world while promising a flawless experience during the event. ELEVATE has committed approximately INR 224.6 crore in investment to nearly 983 businesses since 2016.

Expanding Beyond Bengaluru

In order to support the establishment of start-ups around the state, the Karnataka government is actively promoting its "Beyond Bangalore" project. There are currently about 402 start-ups in the Mysuru cluster, 432 in the Bengaluru cluster, and 463 in the Hubli-Dharwad-Madagavi region. With 32 start-ups originating from Tier II and III cities and women leading 24% of state-funded start-ups, the government's dedication to diversity is evident.

According to Kharge, initiatives like Innovate Karnataka, Ktech, and Startup Karnataka—especially the Elevate programme—have been instrumental in this expansion. Karnataka's entrepreneurial environment has been further cemented with the state government's funding of over 983 start-ups so far.