Tamil Nadu Start-up and Innovation Mission (Start-upTN) is inviting applications from start-ups for ‘TANSEED 5.0’, the fifth edition of Tamil Nadu Start-up Seed Fund (TANSEED), the State government’s flagship seed fund initiative for start-ups. For the first time, TANSEED will be awarded in an equity model for 3 per cent stake in the start-up ventures.
Aimed at bridging the gap in fund requirements of start-ups during their early stages, the seed fund provides support of up to ₹15 lakh to green tech, rural impact & women-led start-ups and up to ₹10 lakh each to other start-ups. For the first time TANSEED will be awarded in an equity model for 3 per cent stake in the startup ventures.
Green tech, rural impact & women-led
Since its inception in 2021, TANSEED has been disbursed as a grant to 84 start-ups. In ‘TANSEED 5.0’, investment in the form of equity is aimed at helping the start-ups through proper guidance to reach their milestones and soar to greater heights, said a release from the Tamil Nadu Start-up Innovation Mission.
A government order with special packages of assistance for green tech, rural impact & women-led start-ups, was released by Chief Minister MK Stalin on December 30, 2022, to support the larger public interest that these sectors serve, is also being implemented in TANSEED 5.0. In addition to the 50 per cent increase in TANSEED, the order also earmarked 25 per cent of seed fund for women-led start-ups and 10 per cent for rural impact start-ups.
Aspiring start-ups should work towards innovation, development or improvement of products or processes with a high potential of employment generation, social impact or wealth creation. The start-up should be headquartered in Tamil Nadu.
It should be registered with start-up TN and the Department for Promotion of Industry and Internal Trade. The fund shall be utilised to develop the prototype or a product that is market-ready or a small level pilot production.
The entity should not have been formed by splitting up, or reconstructing a business that is already in existence, or as a subsidiary or joint venture or associate of another company. This fund is also not meant for Indian subsidiaries of MNCs and foreign companies. The start-up should not have any dues with any of the government agencies and shall not be blacklisted by any government agency in India, the release said.