AP govt to launch Rs 100-crore fund to fuel startup innovation

• The State is home to over 1,800 DPIIT-approved startups, including 803 led by women
• AP’s India Innovation Index ranking shows steady improvement
• The state has invested Rs 18 cr in startup funding over the past 3 years

Vijayawada: Andhra Pradesh, in its New Startup Policy, will establish a Rs 100 crore fund to boost innovation among youngsters across the State, said AP Innovation Society (APIS) CEO Tentu Anil Kumar said on Monday.

He said that AP has 1,807 DPIIT-approved startups, with 803 led by women, and 47 incubators, placing it in the seventh position in India. The state is also home to 571 Atal Tinkering Labs (ATL). AP has 33.87 lakh MSMEs, accounting for a 5 per cent share, also occupying the seventh position.

Anil Kumar disclosed key highlights of the State’s New Startup Policy for next five years at ‘peer learning workshop - building State/UT level innovation ecosystem’ by NITI Aayog organised in Bengaluru for three days. The inaugural day of the event was addressed, among others, by Chintan Vaishnav, CEO of Atal Innovation Mission.

Anil Kumar said the key initiatives towards innovation and entrepreneurship include YSR Jagananna Badugu Vikasam Policy 2020-23, AP Food Processing Policy 2020-2025 and AP Electric Mobility Policy 2018-2023.

Stating that the State’s India Innovation Index Ranking is improving in the past few years, he said the State boasts a flourishing entrepreneurial landscape, characterised by vibrant incubators, accelerators, ample funding prospects and a wide spectrum of startups spanning across technology, healthcare and finance sectors. The State administration has also rolled out a variety of policies and initiatives aimed at bolstering the startup ecosystem.

Describing some of the important ecosystem enablers, he said AIC-SKU Confederation, Anantapur, Andhra University incubation hub, NASSCOM CoE on IoT, IT Association of AP (ITAAP), Visakhapatnam and ACIC KL Startups Foundation, Guntur are doing a wonderful job in spreading innovation culture.

According to him, notable startups/innovations produced in the State include Native Araku Coffee, GreenJams, Saif Seas, Geo Climate Risk Solutions, Garudalytics, Taramandal, Train Dhaba and Carey John International.

On State government funding to startups in the past three years, he said Rs 18 crore had been spent. In his presentation, he said the AP Startup Policy focuses on providing access to market reports and surveys, accelerating startups offering incubation space, creation of a Rs 100 crore fund, establishment of incubation centers in notified areas, conducting hackathons and workshops.

In his presentation, Anil Kumar said in the next five years, the government wanted to revise and improve the existing startup policies to make it more favourable for entrepreneurs, provide incentives such as tax breaks, grants, and subsidies, establish a dedicated fund or investment platform to provide startups with access to early-stage and growth capital and encourage angel investors and venture capitalists to invest in local startups.

He also pointed out that the startup policy envisages creation of innovation hubs and co-working spaces to provide startups with affordable and collaborative work environments, ensuring access to high-speed internet and other essential infrastructure, forging partnerships with established companies and industries to support startups, connecting them with access to potential clients, and facilitating technology transfer. AP Startup One Portal, a digital platform also allows faster innovation.