Tamil Nadu government to introduce equity model under TANSEED 5.0 to develop startups
By Team Startupcity | Monday, 27 February 2023, 09:13 IST
Tamil Nadu will include an equity model for startups in the fifth iteration of the Tamil Nadu Startup Seed Fund (TANSEED 5.0), with the intention of encouraging businesses to expand. The state's government has assisted 84 companies since the launch of TANSEED in 2021. In its fifth edition, TANSEED would be given out in an equity model for the first time in exchange for a 3% interest in the firms.
As stated in a government press release, "investment in the form of stock is aimed at supporting the companies through competent coaching to attain their milestones and fly to greater heights." The fifth iteration of TANSEED seeks to provide equity investments to 50 entrepreneurs.
The goal of TANSEED is to fill the funding gap faced by entrepreneurs in their early stages. The seed fund offers support of up to Rs 15 lakh to initiatives focused on green technology, rural impact, and women-led businesses. T M Anbarasan, the minister for small and medium-sized businesses, had earlier declared in the assembly that this scheme will offer Rs 10 crore to 100 entrepreneurs.
The press release states that entrepreneurs looking to take use of TANSEED should focus on the discovery, development, or improvement of products with a high potential for creating jobs. The startup must have its main office in Tamil Nadu and must be officially registered with the department of development of industry and internal trade. According to the government, many TANSEED recipients in earlier iterations saw growth and raised venture capital money from illustrious investors.
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