Since the introduction of TANSEED in 2021, the government has supported 84 startups in the state. In its fifth edition, TANSEED for the first time would be awarded in an equity model for 3 per cent stake in the startups.
“Investment in the form of equity is aimed at helping the startups through proper guidance to reach their milestones and soar to greater heights,” the government said in an official release.
The fifth edition of TANSEED aims at benefitting 50 startups in the form of equity investments.
TANSEED aims at bridging the gap in fund requirements of startups in their early states and the seed fund provides support of up to Rs 15 lakh to green technology, rural impact and women-led ventures.
Minister for Micro, Small and Medium Enterprises T M Anbarasan had announced in the assembly earlier that Rs 10 crore would be provided to 100 startups under this initiative.
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According to the release, startups who seek to benefit from TANSEED should work towards innovation, development or improvement of products with a high potential of employment generation. The startup should be headquartered in Tamil Nadu and registered with the department of promotion of industry and internal trade.
Many beneficiaries of TANSEED in its previous editions have recorded growth and raised venture capital funds from prominent investors, the government said.