The government is actively considering a financial support scheme to promote the market entry of startups whereby the government would match the contributions of an angel investor with an exit strategy three years later.
Addressing a press conference at the Infopark Technology Business Centre on Tuesday, Principal IT Secretary P.H. Kurian said that the scheme, though, is yet to be finalised.
He said incubation facility by offering space for a small rent and seed funding are the initial support mechanisms for the growth of startups followed by business mentoring and facilitating venture capital or private equity funding in later stages.
Technopark has a seed fund of Rs. 5 crore with startups getting assistance up to Rs. 30 lakh while the board of the Kerala State Industrial Development Corporation has also decided on setting up a seed fund.
Collateral and interest-free funding by Kerala Financial Corporation has proved to be a blessing for startups. Out of the 500 business ventures financed by KFC, 150-odd are technology companies, Mr. Kurian said.
He said that the government is in the process of procuring startup kits, which would be distributed in another couple of months among select companies.
Efforts are also on to set up a landing pad in Silicon Valley. Mr. Kurian said that with the budgetary allocation, about 30 selected youngsters could be sent in batches to Silicon Valley for getting a feel of the eco system there.
Asked about the success rate of startups being incubated, he said that the success rate of services was more than 80 per cent in Technopark Technology Business Incubator. Possibility of failure could be higher in the case of products, as they risk the theft of ideas not protected by copyrights or patents.
Mr. Kurian said that there was no imbalance in the promotion of existing IT companies and startups. “IT companies are being promoted much like the tourism sector now under the global initiative programme in association with the Group of Technology Companies. Right now, Technopark CEO Gireesh Babu is in Dubai with the representatives of 36 companies,” he said.
New IT blockMeanwhile, Infopark’s incubation facility for IT entrepreneurs and MSMEs received a major fillip with the addition of a new 4,000 sqft IT block with state-of-the-art facilities to its existing work space at the Jawaharlal Nehru International Stadium at Kaloor.
Infopark took over the facility, earlier known as ITES Habitat, from Kerala state IT Mission last year. Infopark carried out renovation of the existing work space and added 4,000 sqft built-up area, creating a futuristic infrastructure facility for the start-up, which was inaugurated by Hibi Eden MLA on Tuesday.
Greater Cochin Development Authority (GCDA) Chairman N.Venugopal presided over the function. Principal Secretary, Industries and IT P.H. Kurian, Kerala State IT Infrastructure Limited (KSITIL) Managing Director S Ramnath and Infopark Chief Executive Officer Hrishikesh Nair were also present on the occasion.
“The TBC offers advanced infrastructure facilities at affordable rate to startup companies in the IT/ITES sector,” Mr. Kurian said.
The TBC would also provide mentoring and marketing support for the companies to boost their business in the initial stages, he added.
“The centre will act as an accelerator for the fledgling IT companies. We have allocated space to small-medium sized companies (even on seat basis) to make it more affordable for young people looking to build their business,” Mr. Nair said.
The TBC offers plug-and-play facility for start-ups in the IT/ITES sector. Besides, Infopark will provide business consultancy, technology, prototype development support and research assistance.
The park authorities will also help the companies to secure adequate funding. Currently, the TBC houses 48 companies ranging from small to mid-segment.
Out of the newly created space, 40 seat space is allocated to NRI-TBI, a not-for-profit society aimed at helping NRIs to establish product-based IT companies at nominal cost and without any hassles.
