Karnataka to launch deep tech push with Rs 663 crore fund; VCs to bring in Rs 443 crore

The state will also announce 143 new winners under its Elevate startup programme at the Future Makers Conclave.

The Karnataka government is setting up a joint funding mechanism with private venture capital firms to accelerate deep tech entrepreneurship, announcing a total outlay of Rs 663 crore under its upcoming Startup Policy 2025 to 2030.

The initiative marks the first time the state is partnering directly with private venture capital (VCs) to co-invest in early-stage deep tech and AI startups.

“For the first time, the government is partnering with private venture capitalists… close to Rs 663 crore funding. Sectors of excellence, accelerators, business incubators, and also ELEVATE kind of program that fund the funds through Rs 663 crores,” Karnataka’s Information Technology Minister Priyank Kharge said while addressing the media at the 28th edition of Bengaluru Tech Summit.

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This means that 16 venture capital firms will collectively deploy Rs 443 crore towards deep tech and artificial intelligence (AI) companies identified through the state’s pipeline.

The remaining allocations will come from government funds routed through centres of excellence, accelerators, business incubators, and the fund of funds structure.

What is ELEVATE initiative?

ELEVATE was launched by the government of Karnataka to identify and nurture the most innovative startups and to provide them with the necessary boost at various stages through funding or mentoring.

Meanwhile, minimum ticket sizes begin at Rs 2 crore and can go up to Rs 45 crore, Kharge added.

The state will also announce 143 new winners under its Elevate startup programme at the Future Makers Conclave.

With the latest cohort, the ELEVATE initiative will have supported close to 1,200 startups through direct grants since its launch, the minister said.

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Karnataka described the upcoming Startup Policy 2025-30 as a disruptive framework aimed at strengthening the deep tech decade the government wants to build.

The minister said the new model asks VC funds to match the government’s contribution of around Rs 600 crore to increase risk capital available for deep tech founders.

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