The start-up eco system in Tamil Nadu is all set to get a boost, with the announcement of 'Amma Venture Capital Fund' by the Tamil Nadu Government which aims to help to nurture the start-up ecosystem in Chennai and other cities of our state. In the aim of boosting entrepreneurship in the state, the selected start-ups are expected to be funded with Rs. 1 crore. The Venture Capital will start off with a initial sum of Rs. 200 crores.
The Amma venture capital fund is a part of the manifesto announced by the former CM Jayalalitha, through which several start-up companies are expected to be funded. The start-up fund will work in conjunction with the bio-tech incubation centre that was implemented in Chennai in a budget of 20 crores.
Around 25% of the funding will be provided in form of subsidy and the other 75% funding will be provided as a debt. The loans will be provided at a concessional rate of interest as announced by former chief minister of Tamil Nadu J. Jayalalitha in her election manifesto. Financial assistance for the Amma venture capital fund will be provided by the centre.