Karnataka’s Multi-Sector

Startup Policy

Department of Information Technology,

Biotechnology and Science & Technology

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 HOME PAGE
• Startup Policy
• FAQs
• Incubators

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 Startup Policy 2015-2020
Vision
To create a world-class startup ecosystem through strategic
investment and policy interventions, leveraging the robust
innovation climate.

Goals
Pull out of an
20,000
important statistic 6 lakh direct Mobilizing Focus on
goes in this area generation of
technology
11pt Georgia italic and 12 lakh INR 2000
based
(white) indirect new Crore (USD 25 Innovative
startups jobs in the 333 mn) Technology
including 6,000 sector funding for solutions
product startups, by with social
startups by leveraging the relevance
2020 Fund of Funds
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 Salient Features
Capacity Building Through New Age Incubation
Network
• Fostering links between R&D and Commercialization
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
Workshops

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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: startupcell@bangaloreitbt.in

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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
• For more information:
– Contact the Karnataka Startup Cell at: startupcell@bangaloreitbt.in

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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: startupcell@bangaloreitbt.in

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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

• For more information:

– Contact the Karnataka Startup Cell at: startupcell@bangaloreitbt.in

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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: startupcell@bangaloreitbt.in

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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
• For more information:
– Contact the Karnataka Startup Cell at: startupcell@bangaloreitbt.in

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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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HOME
 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/Startu
p_Policy.pdf and fill up the online form
• The representatives from the cell shall
call you back

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 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 : Criteria for Selection :

• 15 Selected Mobile App Start-ups. • Innovative Mobile Application
• How to Apply.: Technology Company with high
• Visit www.mobile10x.in or contact potential
Satyendra Verma, COO, Mobile10x,
• Less than four years of operation
• Mob: +91 99533 37213
• Less than Rs. 50 cr of Revenue
• Mr. Aditya Ishan, Head of
• 50% of Staff being in Karnataka
Operations, GOK-Mobile 10x Hub,
Bangalore,
• Mob: +91 74069 99953 HOME
 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 :
Criteria for Selection :
• Capacity for 150 people / • Innovative Technology Company
“Scholarships” with high potential
• Lessthan four years of operation
• How to become a part of the
• Lessthan Rs. 50 cr of Revenue
Warehouse:
• 50% of Staff being in Karnataka
• Contact:
BLR.ST1@91springboard.com
• 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
• How to become a part of the Criteria for Selection :
Warehouse: • Innovative Technology Company
• Apply online: http://10000startups.com/ with high potential
• Contact Person:
• Roopa Aravindakshan, • Lessthan four years of operation
roopa@nasscom.in @ • Lessthan Rs. 50 cr of Revenue
7022214209 • 50% of Staff being in Karnataka
• 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
Criteria for Selection :
• Current Status : • Innovative Bio Technology related
• Around 15 companies are in the process with high potential companies
of signing up and 8 resident companies • Less than Seven years of operation
are operating from BBC
• Less than Rs. 50 cr of Revenue
• How to Apply : • 50% of Staff being in Karnataka
• Contact Dr. Jitendra Kumar,
• MD - Bangalore Bioinnovation Centre
• Website: www.bioinnovationcentre.com
• email :
director@bioinnovationcentre.com
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HOME
 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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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 : Criteria for Selection :

• 15 Selected Mobile App Start-ups. • Innovative Mobile Application
• How to Apply.: Technology Company with high
• Visit www.mobile10x.in or contact potential
Satyendra Verma, COO, Mobile10x,
• Less than four years of operation
• Mob: +91 99533 37213
• Less than Rs. 50 cr of Revenue
• Mr. Aditya Ishan, Head of
• 50% of Staff being in Karnataka
Operations, GOK-Mobile 10x Hub,
Bangalore,
• Mob: +91 74069 99953 HOME
 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 :
Criteria for Selection :
• Capacity for 150 people / • Innovative Technology Company
“Scholarships” with high potential
• Lessthan four years of operation
• How to become a part of the
• Lessthan Rs. 50 cr of Revenue
Warehouse:
• 50% of Staff being in Karnataka
• Contact:
BLR.ST1@91springboard.com
• 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
• How to become a part of the Criteria for Selection :
Warehouse: • Innovative Technology Company
• Apply online: http://10000startups.com/ with high potential
• Contact Person:
• Roopa Aravindakshan, • Lessthan four years of operation
roopa@nasscom.in @ • Lessthan Rs. 50 cr of Revenue
7022214209 • 50% of Staff being in Karnataka
• Facility located at Diamond District, Old
Airport Road.

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HOME
 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
Criteria for Selection :
• Current Status : • Innovative Bio Technology related
• Around 15 companies are in the process with high potential companies
of signing up and 8 resident companies • Less than Seven years of operation
are operating from BBC
• Less than Rs. 50 cr of Revenue
• How to Apply : • 50% of Staff being in Karnataka
• Contact Dr. Jitendra Kumar,
• MD - Bangalore Bioinnovation Centre
• Website: www.bioinnovationcentre.com
• email :
director@bioinnovationcentre.com
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