3. BUDGET FOR STARTUP TN
• Tamil Nadu would get ₹44,760.83 crore as its share of Central taxes as per the
revised Union Budget estimates for 2023-24, presented by Finance Minister
Nirmala Sitharaman on Thursday. This is about 7.4% higher than the ₹41,664.86
crore projected in the initial estimates
• .As per the revised Union Budget estimates for 2023-24, after some adjustments
made for previous years, Tamil Nadu would receive a total of ₹45,052.53 crore as
its share of Central taxes.
• In the interim Budget estimates for 2024-25, Tamil Nadu’s share of Central taxes
is estimated to be ₹49,754.95 crore, which is about 11.2% higher than the revised
estimates for 2023-24.
4. OVERVIEW OF STARTUP TN
• STARTUP TN has accomplished many things from the day of its start
from 2018 to this day like
• It has around 7700+ recognized startups
• It allocated almost 14crores seed grant
• It helped around 132 startups through seed funding
• It has started startups around 30 sectors
• It has 104 incubtors under its wing
5. SCHEMES OF STARTUP TN
TANSEED 4.0
• TANSEED 4.0
• Initiative Name : TANSEED (Tamil Nadu Startup Seed Grant Fund)
• Edition : Fourth
• Objective : Bridge the fund gap for startups during their early stages.
• Seed Fund Support : Up to INR 10 Lakhs as a grant.
• Target Recipients: Budding startup entrepreneurs.
• Purpose: Support startups in their early stages of development.
• Launch Announcement: Delighted to announce the fourth edition of TANSEED.
• Overall Goal: Facilitate and encourage the growth of startups by providing
essential seed funding.
6. SCHEMES UNDER STARTUP TN
• ELIGIBILITY CRITERIA
• The entity should be a Startup registered with TANSIM and STARTUP INDIA. It shall be located & headquartered in Tamil Nadu or willing
to relocate the registered office to Tamil Nadu.
• The entity should be registered as a Private Limited Company (under Companies Act 2013), or a Limited Liability Partnership (Under
Limited Liability Partnership Act 2008), or a registered Partnership firm (under Partnership Act 1932).
• The average profit of the entity (as per income tax return) for the last 3 years (or lesser in case it’s a newly registered entity) shall be less than
Rs.5 Lakh.
• Working towards innovation, development, or improvement of products or processes with a high potential of employment generation, social
impact, or wealth creation.
• The entity should not have been formed by splitting up, reconstruction of a business already in existence, or as a Subsidiary/Joint
Venture/Associate of another Company.
• The startup should have cleared all / not have any other pending dues with any of the Government agencies and shall not be blacklisted by
any Government agency in India.
• Applicant has to be an Indian start-up. This support is not meant for Indian Subsidiaries of MNCs/Foreign Companies. Persons holding
Overseas Citizenship of India (OCI) and Persons of Indian Origin (PIO) would be considered as Indian citizens for the purpose of this
scheme. The shareholding by Indian promoters in the incubated Startup should be at least 51%.
• The Seed Grant is not generally given for service Startups working in Trade and Commerce.
• The seed fund shall be funding the development of the prototype or a product which is market-ready / of small level pilot production only and
shall not be for regular research which any University or College can foster.
• StartupTN reserves all rights in adding additional conditions / modifying existing conditions on a case-to-case basis.
7. SCHEMES UNDER STARTUP TN
• Areas covered under the Grant:
• The Startups would be supported primarily on the following:
• to develop a prototype or working model to demonstrate the proposed technology solution and also
cover the cost of equipment rental.
• Hiring technical mentors to aid and assist in prototype creation.
• Manpower for product development.(Not more than 30% of Grant)
• Test Marketing
• Testing, certification, and trials.
• Any other expenses deemed fit by the TANSEED Expert Committee.
8. SCHEMES UNDER STARTUP TN
• Following expenditures will not be supported by the grant
1.Remuneration of the founding team. [Founding team includes anyone with beneficial
ownership of more than 10% during the grant program]
2.Any administrative expenses such as office rent, daily travel, and conveyance, personal
use equipment such as mobile phones, laptops etc.
3.Repay any loans or investments made by the founding team or any other person in the
venture to date.
4.Pure research projects that intends to demonstrate scientific principles/techniques etc.
5.Ideas with no intention of commercialization i.e. to convert into marketable
technology/products/services.
6.Innovations with serious ethical and safety risks deemed infeasible by experts and have
serious pollution and health implications
7.Funding cannot be used to support student /faculty research or any other academic
research.
9. SCHEMES UNDER STARTUP TN
• Shortlisting Criteria:
1. The startup must be working on an innovative product or technology and not involved in pure service
delivery.
2. Problem Identification and impact of the solution.
3. Potential for scaling up and employment creation.
4. Commitment, expertise & pedigree of the team.
5. The depth of research done on the identified problem.
6. If the startup has any dues with TANSIM, that needs to be cleared before availing the fund.
7. Business plan and usage of Fund – Clear deliverables and outcomes have to be mentioned by startups in their
application. The shortlisting will be based on the quality of the business plan provided. Product-market fit,
early customer feedback, technological capability of startup team to execute the project are some of the
factors considered for shortlisting.
8. Funds received by the applicant like grants, prize money and other financial modes will also be taken into
consideration before sanction. Priority will be given to those startups who have not received any fund.
9. The shortlisted Startups will then pitch to the TANSEED Expert / High Level Committee, who will
recommend if the Startups are worth funding.
10. SCHEMES UNDER TN
TAMIL NADU SC/ST STARTUP FUND
• Initiative Name: Tamil Nadu SC/ST Startup Fund
• Objective: Support startups led by entrepreneurs from Scheduled
Caste/Scheduled Tribe communities.
• Initiated by: Government of Tamil Nadu
• Nature of Fund: Exclusive fund for SC/ST entrepreneurs.
• Investment Approach: Equity or debt, based on evaluation and
recommendation of the Investment Committee.
• Focus: Invest in innovative and scalable startups.
• Community Focus: Entrepreneurs from the Scheduled Caste/Scheduled
Tribe communities.
• Overall Goal: Promote entrepreneurship and innovation within the SC/ST
communities by providing financial support to startups.
11. SCHEMES UNDER STARTUP TN
• Eligibility criteria to apply for TN SC/ST Startup Fund
• The applicant, at the time of application, should conform to the definition of Startup
under the Tamil Nadu Startup and Innovation Policy.
• More than 50% of equity of the company/enterprise must belong to one or more persons
who belong to the SC/ST community.
• The control of the company/enterprise should vest with SC/ST shareholders.
• The company/enterprise or enterprise should be domiciled in India and its principal base
of operation should be India.
• The SC/ST entrepreneur(s) who have applied should be native(s) of Tamil Nadu or of
Tamil origin.
• Preference will be given if such entrepreneur(s) have their principal base of operation
within Tamil Nadu.
12. SCHEMES UNDER STARTUP TN
• Application Process
• Interested applicants may fill the application form in this link with complete,
adequate, and verifiable information and upload the prescribed documents.
• TANSIM would revert to applicants for want of further information or
clarifications.
• Shortlisted applicants would be invited for direct interactions in a multi-staged
selection process.
• The applications will be processed batch-wise, on a First in First out basis.
• The application should come through the prescribed transparent process. Any form
of influence would lead to disqualification of the application.
• The decision of the Investment Committee will be the final.
• The process of the application may take 4 to 6 months from the date of acceptance
of the application (acceptance of the application does not guarantee sanction of
funds).
• The receipt of applications may be closed once the threshold level is reached.
13. SCHEMES UNDER STARTUP TN
TANSEED 3.0
• Initiative Name: TANSEED (Tamil Nadu Startup Seed Grant Fund)
• Edition:Third
• Collaborators: In association with Headstart Network Foundation & Villgro
Innovations Foundation
• Objective:Support startups with a Seed Grant of up to INR 10 Lakh each.
• Financial Support Focus: Early-stage financing requirements.
• Grant Nature:TANSEED provides grants to fill the gap in fund requirements for
research and innovations.
• Launch Announcement: Delighted to announce the third edition of TANSEED.
• Overall Goal: Address the financial needs of startups in their early stages,
specifically for research and innovation, through the provision of seed grants.
14. OVERVIEW OF TANSEED 3.0
• TANSEED Editions:
• First Edition: Launched during January-February 2021.
• Second Edition: Launched during July-October 2021 as a Grand Challenge.
• Supported 29 promising startups with a seed grant of Rs. 10 Lakh each.
• Association :In collaboration with “ Headstart Network Foundation."
• TANSEED 3.0:
• TANSIM (Tamil Nadu Small Industries Development Corporation Limited) has empanelled two implementation partners for
TANSEED 3.0.
• Objective: Discover and support innovative enterprises across various sectors.
• Implementation Partners:
• Details of partners provided with their focus sectors.
• Startups are encouraged to apply to the respective partners based on their sector.
• Overall Impact: Continuation of TANSEED to foster innovation and provide financial support to startups for the third edition
in collaboration with new implementation partners.
