Karnataka govt, venture capital firms to create joint fund of over ₹1000 cr for DeepTech, AI startups

Karnataka IT Minister Priyank Kharge on Tuesday (November 18) said the state government is investing ₹600 crore in Deep Tech and AI and along with leading venture capital firms, it aims to create a joint fund of over ₹1,000 crore to support start-ups in these sectors in the state.

According to him, Karnataka is set to make a major push in emerging technologies during the first Future Makers Conclave on November 20 at the 28th edition of the Bengaluru Tech Summit here.

"We are concentrating heavily on DeepTech and AI. For the first time, we are having the Future Makers Conclave where we have tied up with private venture capitalists, and together we are disbursing close to around Rs 1,100 crore on a single platform on November 20 to DeepTech startups,” he told reporters here.

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According to officials, the Future Makers Conclave will be the flagship event of the summit and the launchpad where Karnataka shifts from ”leapfrogging” to "pole-vaulting” into its DeepTech Decade. The conclave will have more than 10,000 attendees including founders, entrepreneurs, investors, mentors, and ecosystem leaders.

“This initiative reflects our vision to create a robust Deep Tech pipeline supporting entrepreneurs working on technologies such as AI, ML, quantum computing, advanced manufacturing, robotics, and sustainability-driven innovation,” Kharge said.

The Minister said the government of Karnataka is investing ₹600 crore in Deep Tech and AI under this initiative and is in discussions with leading venture capital firms to create a joint fund of over ₹1,000 crore dedicated to Deep Tech and AI start-ups in the state.

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“Our blueprint is ready, and we are serious about being global players in the technology landscape,” he said.

The Future Makers Conclave will benefit new-age entrepreneurs as they can interact with investors, industry leaders, and learn how the innovation and tech ecosystem works.

"A significant part of the Future Makers Conclave is the VC and investment commitment segment where 16 venture capital funds will jointly commit ₹430 crore towards DeepTech and AI start-ups. This is a collective round, not individual investments, and it shows the confidence the investor community has in Karnataka’s DeepTech pipeline,” the Minister said.

According to an official statement, the ₹600 crore investment in Deep Tech includes ₹150 crore for the Deep Tech Elevate Fund, with a special focus on AI and frontier technologies, ₹80 crore under the Elevate Beyond Bengaluru Fund to promote start-ups in Mysuru, Mangaluru, Hubballi-Dharwad and Kalaburagi; ₹75 crore through the KITVEN Fund for equity-based investments in Deep Tech and AI start-ups, with funding between ₹50 lakh and ₹2 crore.

It also includes ₹48 crore for new incubators and accelerators at IIT Dharwad, IIIT Dharwad and Kalaburagi, and ₹110 crore for business incubators in higher education institutions, nurturing early innovation and entrepreneurship across 11 institutions already cleared by the Cabinet, it stated.

The government also plans to establish six globally benchmarked “Centres of Excellence” across state clusters with a budget outlay of ₹90 crore to drive R&D, talent development and industry–academia collaboration in sectors like software, biotech, deftronics, semiconductors, quantum, AI/ML, robotics, blockchain and space tech. In addition, ₹25 crore will be provided to set up innovation labs in schools across the state, the statement added.