Tamil Nadu Chief Minister M.K. Stalin hands over sanction letters to transgender founders of startups at the inaugural of the Global Startup Summit held in Coimbatore city on October 9, 2025.
| Photo Credit: S. Siva Saravanan
The Tamil Nadu government will create a co-creation fund, with an allocation of ₹100 crore, to invest in venture capital funds, said Chief Minister M.K. Stalin at the inauguration of the Global Startup Summit in Coimbatore on Thursday (October 9, 2025).
“I would like to announce a new initiative at this summit aimed at further strengthening Tamil Nadu’s startup ecosystem. A co-creation fund with an allocation of ₹100 crore will be established. The fund will be managed by the Tamil Nadu Startup and Innovation Mission (StartupTN),” he said.
Under this scheme, the government will invest in venture capital funds that, in turn, invest in startups based in Tamil Nadu. This initiative will lead to the creation of new venture capital firms in the State, and will also help attract leading global investment firms, Mr. Stalin added.
Inaugurating the Global Startup Summit hosted by Startup TN, the Chief Minister said Tamil Nadu has attracted investments from high-tech and labour-intensive industries. “Our government is diligently working towards achieving the goal of making Tamil Nadu a $1 trillion economy by the year 2030.”
When it comes to the industrial sector, the goal of the ‘Dravidian model’ government is to spread startup awareness across every region of the State, Mr. Stalin said. The government’s new-age entrepreneurship initiatives must reach people from all walks of life, including women, youth, marginalised communities, persons with disabilities, and transgender persons alike. “Social justice, even in startup policy, is the essence of the Dravidian model policy,” he said.
T.N.’s startup growth
In the last four years, the number of startups in the State registered on the Union government’s platform has grown six-fold compared to previous years — from 2,032 to 12,000. And half of these are led by women. 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. According to the Global Startup Ecosystem Report 2024 released by Startup Genome, Chennai ranks 18th in Asia. The Atal Innovation Mission functioning under NITI Aayog has recognised Tamil Nadu as a model State for developing an excellent innovation ecosystem, Mr. Stalin said.
In recent years, the investment-raising capacity of startups in Tamil Nadu has increased significantly. According to the Inc42 report, the average investment raised by startups grew from $1 million in 2016 to $6 million in 2024, reflecting investors’ growing confidence in Tamil Nadu-based startups. Between FY 2020 and FY 2025, the number of startups from Tamil Nadu recognised on the DPIIT platform recorded a compound annual growth rate (CAGR) of 36%, which is three times higher than the national average of 11%.
Considering the growing number of startups in Tamil Nadu, a dedicated budget allocation of ₹20 crore has been made for this scheme in the current financial year, he further stated.
Equity investments are provided to startups led by entrepreneurs from Scheduled Castes and Scheduled Tribes. The allocation for this scheme was increased from ₹30 crore in 2022-2023 to ₹50 crore in 2023-2024. Through the TANFUND platform, which was launched last year, ₹129.24 crore funding was raised.
More than 250 participants from over 40 countries are taking part in the Global Startup Summit. Startups from 21 countries have established dedicated pavilions at the exhibition, Mr. Stalin said.
Published – October 09, 2025 04:10 pm IST
