Department of Electronics & Information Technology
1. Winding up facilitation
The startups undergo many cycle of correction and the need to reinvent and restart the process all over is a part of the learning curve the entrepreneur goes through. It is then critical that the startup founder be able to close his failed startup attempt and move on rather than be bogged down by the old one. The state will give support and guidance to them in whatever ways needed.
1.1. Distressed Startup Fund
If the startup had a compelling reason to borrow and attempt the idea and it is seen that they had genuinely attempted it then the government shall write off /reimburse debts of such startups through a fund created under distressed Startups Fund. The fund would be implemented through the Government of India approved/Government of Kerala approved startup incubators. The source of these funds could be government contribution and contribution to Incubator by the incubator and through CSR funds from the corporates. The contribution to the fund will be in the ration 40: 30:30 (Govt: Incubator: CSR/other funding). The incubator shall form a committee with a member from the Government department (as Chair) , A chartered accountant and industry member with other members as the incubator may deem appropriate.
2. Repeated attempt
Reinstating the startup status for a startup who is pivoting (after the initial three years) shall be done if the incubator where the startup is placed does a recommendation to Government (KSUM) regarding the previous track record and the current proposal duly vetted by a expert committee of standing.
3. No Failed Entrepreneur
The Government recognizes the fact that the ideas, attempts / or start ups could fail but there cannot be a failed entrepreneur. The Startup founder/ entrepreneur shall not be barred from restarting a startup in an incubator or availing the benefits of the startups/entrepreneurs due to a previous failed attempt unless there is a filed/proven case of fraudulent/malicious intent. The Government endorses the fact that the failed attempt provides lot more learning and experiences that are equally important.