Kerala IT Policy 2017 (Draft)

Department of Electronics & Information Technology

Govt. of Kerala
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10.4. Scale-up

A major area of deficiency noted in the ecosystem is the lack of support of the startups in the scaling stage. These are startups which have garnered a good round of funding or got acquired by a larger entity or amalgamated with another entity.

  1. Infrastructure support for scale-ups,
    The government proposes to give subsidized infrastructure for the scaleups in terms of built up space in the government owned/assisted parks. The subsidizing could be interms of reimbursing part of the rent (a maximum of 50% or 20 Rs /sqft) whichever is lower; this shall be subject to the growth shown by the startup in terms of team, top line, valuation etc.

  2. Extended support during transition

    2.1. for merged/acquired/amalgamated startups
    All benefits of the startups shall be extended to the merged / acquired / amalgamated entities formed out of a startup with a significant valuation, for a period of 1 more year of formal reporting of the transaction.

    2.2. Startup expansion with funding
    Startups that are beyond the period of concessions ( 3 years ) under the startup definition but who have managed a substantial funding and has created value shall be given an extended benefits under all the schemes.

  3. Government Funding for acquired/merged entities
    Government funding agencies that are supporting startups through Grants, debt and equity funding shall be allowed to extend the same facility to a merged / acquired / amalgamated entity formed out of a startup, with significant valuation.

  4. Conversion of debt to equity (at premium)
    Government shall join as a limited partner in SEBI accredited funds, with focus on Kerala as a limited partner and shall contribute to a maximum of 25% of the fund corpus


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