In order to encourage businesses to expand their operations, Tamil Nadu will for the first time in its fifth iteration of the Tamil Nadu Startup Seed Fund (TANSEED 5.0) establish an equity model for entrepreneurs.
The state’s government has assisted 84 companies since the launch of TANSEED in 2021. In its fifth edition, TANSEED would be given out in an equity format for the first time in exchange for a 3% interest in the firms.
“Investment in the form of equity is aimed at helping the startups through proper guidance to reach their milestones and soar to greater heights,” the government said in an official release.
Through equity investments, the fifth iteration of TANSEED hopes to assist 50 businesses.
The goal of TANSEED is to fill the funding gap faced by businesses in their early stages. The seed fund supports green technology, rural impact, and women-led initiatives by contributing up to Rs 15 lakh.
T M Anbarasan, the minister for small and medium-sized businesses, had earlier said in the assembly that 100 companies will receive Rs 10 crore as part of this scheme.