Kerala Government extends Financial Support for Startups by two years

21 November 2017, India:

The Kerala governing administration has announced today that it would be extending monetary support for startups in the state by two more years. As a result, Kerala government will provide seven years of financial support (instead of existing 5 years support) to Kerala-based startups.

According to reports, the initiative is in line with the Startup India’s definition of startups. Benefits such as access to subsidised office facilities, will also be extended as a part of this move. This move will give the much needed boost to tech based product development startups currently operating in Kerala.

“Product development companies take longer to build when compared to services companies. Seven years is a reasonable time period. KSUM focuses on developing product-based companies and the extension will suit our requirements,” said, Ashok Kurian Panjikaran, Manager of Kerala Startup Mission (KSUM).

Kerala Startup Mission was started in 2006. It is the utilizing agency of the Government of Kerala for entrepreneurship advancement and incubation functions in the point out.

Panjikaran told that, at present, there are 757 technology startups registered with Kerala Startup Mission (KSUM).

According to a recent study, only a few startups have manged to earn a profit. The majority of startups are still  So, this move of extending the benefits will help the startups and will reduce the extra financial burden of startups as well.

According to startup entrepreneur Robin Alex Panicker, product development companies take longer to build when compared to services companies. Without subsidized office facilities and other benefits, the cost of a startup company will increase significantly after the incubation period.

KSUM has revealed plans to launch Youth Entrepreneurship Development Program (YEDP) to nurture and mentor future CEOs. The aim of YEDP is to facilitate technology led innovation and entrepreneurship among school and college students as well as aspiring entrepreneurs.

It has already received a state funding of ₹20 crore (about $3 million). The selected startups will receive funds by the next month.

Kerala was one of the first states to adopt a Startup Mission for implementing the entrepreneurship development programmes in the state. In 2014, the technology startup policy was launched. The aim of the technology startup policy was to build an entrepreneurial society in Kerala.

KSUM was formerly known as the Technopark Technology Business Incubator (T-TBI). T-TBI was a society under the Travancore Cochin literary, Scientific and charitable Socities Registration Act XII of 1995.

(Image – wikipedia)