DMK’s vision is to make TN world's top startup hub: CM Stalin

COIMBATORE: Chief Minister MK Stalin on Thursday announced the establishment of a co-creation fund with an allocation of Rs 100 crore to invest in venture capital firms that, in turn, invest in startups based in Tamil Nadu.

Speaking after launching the Global Startup Summit in Coimbatore, the Chief Minister said the fund will be managed by Tamil Nadu Startup and Innovation Mission (StartupTN).

“This initiative will lead to the creation of new venture capital firms in Tamil Nadu. It will also help in attracting leading global investment firms to the state,” he said.

Stating that Tamil Nadu is a place where industries can operate peacefully, Stalin said his vision is to achieve the goal of making Tamil Nadu a one trillion-dollar economy by the year 2030,” he said.

Stating that the vision of the Dravidian model of government is to make Tamil Nadu into one of the world’s foremost startup hubs, Stalin said the number of startups registered on the Union government’s platform has grown six fold from 2,032 to over 12,000 over the last four years.

“Nearly half of these 12,000 startups are led by women entrepreneurs. In 2018, Tamil Nadu was ranked at the bottom among Indian states for startup infrastructure. In just four years, by 2022, the state rose to the top position in the ranking of states with the best startup ecosystem,” he said.

Stating that the investment-raising capacity of startups in Tamil Nadu has increased significantly, Stalin said, according to an Inc42 report, the average investment raised by startups grew from USD 1 million in 2016 to USD 6 million in 2024, reflecting investors' growing confidence in Tamil Nadu-based startups.

“Between the financial years 2020 to 2025, the number of startups from Tamil Nadu recognised on the DPIIT platform recorded a compound annual growth rate (CAGR) of 36 per cent, which is three times higher than the national average of 11 per cent. Between 2021 and 2024, deeptech startups, headquartered in Chennai, achieved a 66 per cent compound annual growth rate in investment value, ranking second in the country at the national level,” he said.

To help startups expand beyond metro cities and reach every part of the state, 11 regional hubs have been established across Tamil Nadu, Stalin said, adding that various initiatives have been undertaken to enable youth from every district of Tamil Nadu to actively participate in new-age entrepreneurship and contribute to the state’s economic growth.

To ensure early-stage startups do not abandon their efforts due to a lack of funds, the government implements the Tamil Nadu Startup Seed Grand (TANSEED) scheme to provide seed funding support.

Under this scheme, women entrepreneurs are provided with 50 per cent additional funding support. Considering the growing number of startups in Tamil Nadu, a dedicated budget allocation of Rs 20 crore has been made under this scheme in the current financial year,” he said.

Besides providing equity investments to startups led by entrepreneurs from Scheduled Castes and Scheduled Tribes, Stalin said these startups also receive continuous business training and mentoring support from industry experts.

“For this scheme, the allocation has been increased from Rs 30 crore in 2022-23 to Rs 50 crore in 2023-24. To connect startups seeking investment with potential investors, a TANFUND platform was launched last year for investor-startup connection. Through this platform, startups have successfully raised Rs 129.24 crore in funding,” he said.

Stalin also released the blueprint of the vision 2035 road map, prepared by Startup Genome, which outlines strategies for transforming Tamil Nadu into a leading startup hub over the next ten years. A playbook with comprehensive policy recommendations and actionable strategies for strengthening the state's startup ecosystem will be released in the coming weeks, he said.

More than 250 participants from over 40 countries are taking part in the summit, while 21 countries have established their dedicated pavilions and startup missions and departments from nine state governments, including Kerala, Odisha, Meghalaya, and Andhra Pradesh, have taken part. The summit features investor meet-ups, exclusive masterclasses by companies such as Google, PhonePe, Microsoft, and Meta, and exhibition spaces showcasing student innovations.

Memorandums of Understanding (MOUs) have been exchanged with organisations from Germany, the United States, France, Canada, South Korea, and the Philippines.