Karnataka Launches ₹600 Crore Deep Tech Fund to Position State as India's AI Capital

This is the Deep Tech Decade for Karnataka: State IT Minister Priyank Kharge | AIM

The government announces a ₹600 crore deep tech fund, with a potential expansion of up to ₹1,000 crore in collaboration with venture capital firms. Ahead of the 28th edition of the Bengaluru Tech Summit (BTS), to be held from November 18 to 20, the government of Karnataka announced a deep tech fund of over ₹600 crore. While the government is investing the said amount, it is also in discussions with leading venture capital firms to create a joint fund of up to ₹1,000 crore, as announced by Priyank Kharge, IT minister of Karnataka. "Our blueprint is ready, and we are serious about being global players in the technology landscape," he said in a press conference held on November 3. "We are announcing what we call the deep tech decade for Karnataka," he added. The ₹600 crore fund is strategically distributed across several key categories. ₹150 crore has been allocated to the Deep Tech Elevate Fund, which is specifically designed to support AI and other frontier technologies. Another ₹80 crore is dedicated to the Elevate Beyond Bengaluru Fund, fostering startups in Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi. The KITVEN Fund received ₹75 crore, offering equity-based investments ranging from ₹50 lakh to ₹2 crore for deep tech and AI startups. New incubators and accelerators at IIT Dharwad, IIIT Dharwad, and Kalaburagi are supported with ₹48 crore. Finally, ₹110 crore is designated for business incubators in higher education institutions, nurturing early innovation and entrepreneurship across 11 cabinet-approved institutions. "For the first time in India, a state is allocating ₹600 crores [for deep tech]," said Kharge. Besides, it was also announced that the state government has 'earmarked' ₹200 crore for deep tech startups and will explore fund-of-funds or co-investment models with venture capital firms. Alongside, the government also announced the 'Future Makers Conclave' at the upcoming BTS this month. The initiative aims to bring together 10,000 founders, entrepreneurs, investors, mentors, and ecosystem leaders. "The programme will include show-and-tell sessions by emerging technology ventures, keynotes by celebrity speakers, unicorn founders, investors, and industry captains," stated the government.

Karnataka announces Rs 600 crore to build deeptech capital ahead of Bengaluru Tech Summit

IT-BT minister Priyank Kharge said the government will also explore a Rs 200 crore fund-of-funds and co-investment models with venture capital firms. The final size of the fund could rise to Rs 1,000 crore, he added. The Karnataka government on Monday announced a Rs 600 crore investment to support entrepreneurs working on technologies such as artificial intelligence (AI), machine learning (ML), quantum computing, advanced manufacturing, robotics, and sustainability-driven innovation. IT-BT minister Priyank Kharge said the initiative reflects the government's vision to create a robust deeptech pipeline supporting founders and position Karnataka as the deeptech capital of India. "Our blueprint is ready, and we are serious about being global players in the technology landscape," Kharge said. The Rs 600 crore investment in the sector includes Rs 150 crore for the DeepTech Elevate Fund, which would have a special focus on AI and frontier technologies. In the Elevate Beyond Bengaluru Fund, Rs 80 crore will be invested to promote startups in Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi. Another Rs 75 crore will be made available through the Karnataka Information Technology Venture Capital Fund (KITVEN) for equity-based investments of between Rs 50 lakh and Rs 2 crore for deeptech and AI startups. The government will also support setting up new incubators and accelerators at IIT and IIIT Dharwad and Kalaburagi, and has earmarked Rs 48 crore for the same. To nurture seed-level innovation across 11 institutions earlier cleared by the state cabinet, minister Kharge said Rs 110 crore will be allotted. "The government will also explore a Rs 200 crore fund-of-funds and co-investment models with the venture capital ecosystem to ensure continuous capital flow and scalability across the deeptech value chain," the minister said. He added that in collaboration with VCs, the total fund strength could be Rs 1,000 crore, exclusively dedicated to the deeptech sector and AI startups in Karnataka. Earlier, the minister had met over 50 members of the VC fraternity from across the country. The announcement comes ahead of the Bengaluru Tech Summit, scheduled for November 18-20. This year, the summit will have a Future Makers Conclave (FMC), to which over 10,000 founders, entrepreneurs, investors, mentors, and ecosystem leaders will be invited. Designed to showcase India's most promising AI and deeptech startups, FMC aims to feature show-and-tell sessions by emerging ventures, alongside keynotes from unicorn founders, investors, and global industry leaders. Under the theme 'Futurise', BTS 2025 aims to bring together 500 speakers, 20,000 delegates, 1,000 exhibitors, and an estimated 50,000 business visitors from over 60 countries. The event will span 10 curated tracks covering AI and deeptech, defence and spacetech, electronics and semiconductors, and more.