StartupTN Launches TANSEED 7.0: A Support Equity-Linked Grant Fund for Tamil Nadu-based Startups

Chennai, December 23, 2024: StartupTN, the Government of Tamil Nadu’s nodal agency for startups and innovation under the Department of Micro, Small, and Medium Enterprises, is inviting applications for ‘TANSEED 7.0,’ the seventh edition of the Tamil Nadu Startup Seed Fund (TANSEED). Launched on December 24, 2024, this edition aims to support promising startups with a Support Equity-Linked Grant Fund. Since its inception in 2021, TANSEED has sanctioned funding to 169 startups.

TANSEED is the Government of Tamil Nadu’s flagship seed fund initiative, designed to address funding gaps faced by startups during their early stages. Beginning with the 5th edition, TANSEED transitioned to a Support Equity-Linked Grant Fund model, offering up to ₹15 lakh to Green Tech, Rural Impact, and Women-led startups, and up to ₹10 lakh to startups in other sectors. As part of this program, StartupTN acquires a 3% support stake in the funded ventures and provides a one-year accelerator program, which includes mentorship, priority access to networking events, and opportunities to participate in national and international startup delegations.

Eligible startups must focus on innovation, development, or the improvement of products or processes with high potential for employment generation, social impact, or wealth creation. Applicants must be registered in Tamil Nadu and recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, as well as StartupTN. The funds should be used for developing prototypes, market-ready products, or small-scale pilot production.

Startups formed by splitting or restructuring existing businesses, subsidiaries, joint ventures, or associates of other companies are not eligible. Additionally, Indian subsidiaries of multinational or foreign companies are excluded. Applicants should have no outstanding dues or blacklisting with any government agency in India.

Previous beneficiaries of TANSEED have successfully scaled their ventures, raised venture capital from prominent investors, and achieved significant expansion.

Applications can be submitted online at the StartupTN portal, www.startuptn.in. The last date for submission is January 15, 2025. For detailed guidelines and eligibility criteria, visit the official website. For specific queries, email tanseed@startuptn.in.

Issued By: DIPR, Secretariat, Chennai – 9