Karnataka to Setup Rs 15 cr Angel Fund: Budget 2013-14


Karnataka to Setup Rs 15 cr Angel Fund: Budget 2013-14

Karnataka government has made a provision of Rs 15 cr to setup a new angel fund to invest in startups, Chief Minister Siddaramaiah said while presenting the state budget for the year 2013-14.

The state government has also proposed to setup a Rs 128 cr Indian Institute of Information Technology (IIIT) in Dharward with Rs 45 cr state contribution. A mobile IT lab at the cost of Rs 2 cr will be setup to create interest in IT & enhance knowledge of school children.

Earlier, we’d reported of a proposal by the State vision group on Information Technology 2020 to setup a Rs 1000 cr Israel model fund. As we’d pointed out at the time fo writing, looks like the Rs 1000 cr fund will have to wait. However, the panels recommendation of investing nearly Rs 15 cr seems to have had some effect.

Karnataka has already done a couple of investment funds- The Karnataka Information Technology Venture Capital Fund (Kitven Fund) 1 & Kitven 2. The corpus of Kitven 1 was Rs 15 cr and the second fund was Rs 26.25 cr.

According to documents accessed by NextBigWhat, out of the 17 companies funded by Kitvin 1, the Government has exited 9 with fairly decent returns and five did not give any returns. (See breakup below)

Kitven 1

The second Kitven fund launched in 2008-09 has invested in 7 companies including Pawaa Software, Mitra Biotech, Sloka Telecom, Vidteq, Semtronics Microsystems and Channel Mentor IT solutions.

State government of Gujarat has launched two Venture Capital funds since 2005 under the umbrella of Gujarat Venture Fund Limited. Rajasthan has a similar VC fund and Andhra Pradesh used to have one which was privatized.

Meanwhile, Kerala is planning an angel network led by the likes of Kris Gopalakrishnan. The network has plans to have 1,000 members in two years with each member investing up to $183,000.

Other IT related Highlights in Budget 2013-14

  • Launching of e-District Project to initially enable 9 Government Departments to automate and electronically deliver 132 citizen services.
  • Launching of single window for citizen services State Portal and State Service Delivery Gateway (SSDG) Project.
  • Facilitating Video-Conferencing in all talukas under KSWAN Project.
  • Opening of 46 Citizen Service Centres in 10 cities.
  • Launching of Common Service Centres in all Grama Panchayats for providing citizen services.

Science & Technology

  • Continuation of programmes recommended by science and technology vision group lead by renowned scientist C.N.R.Rao – Rs. 20 crore.
  • Establishment of science gallery in Bangalore – Rs. 5 crore.
  • Planetarium with 3D projection system in Dharwad science centre – Rs. one crore.
  • Knowledge resource centre at Suttur, Mysore District Rs. 5 crore.
  • Sub regional science centre at Bagalkot – Rs. 3 crore.
  • Development of Karnataka Geo Information System – Rs. 160 crore.

Read the complete budget highlights here.

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