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What is KITVEN Fund? An initiative by the Karnataka govt to encourage entrepreneurship

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ISN Team
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The Karnataka government’s Karnataka Information Technology Venture Capital Fund (KITVEN) is designed to support emerging businesses across diverse sectors and encourage entrepreneurship in the state.

Established in 1999, the fund is backed by both state and central government financial institutions, including the Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC), Karnataka State Financial Corporation (KSFC), the Small Industries Development Bank of India (SIDBI) and Karnataka Bio-technology & Information Technology Services (KBITS).

Introducing Rs 20 crore VC fund

During the fifth edition of Bengaluru GAFX in 2024 — regarded as India’s largest gathering for the gaming, animation and visual effects industry — KITVEN introduced a Rs 20 crore venture capital (VC) fund tailored to the animation, visual effects, gaming and comics (AVGC) sector.

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The event was hosted by the Government of Karnataka and organized by ABAI, underscoring the state’s focus on fostering creative industries.

How KITVEN works?

Startups and small businesses interested in obtaining support from KITVEN are required to submit a detailed proposal, which typically includes an executive summary, company background, target market information, operating plan, funding requirements and market opportunities.

It's worth noting that companies must demonstrate how they plan to use the capital and outline the technology or products they will bring to market.

Operational funds

There are currently two active KITVEN Funds focused on different verticals:

1. KITVEN Fund-4 (AVGC)

  • Corpus: Rs 20 crore
  • Investment focus: Animation, visual effects, gaming, comics and related industries.
  • Investment range: Rs 50 lakh to Rs 1 crore initially; up to Rs 2 crore in later rounds.
  • Category: Category 1 – Venture Capital Fund
  • Manager & Trustees: Karnataka Asset Management Company Pvt. Ltd. and Karnataka Trustee Company Pvt. Ltd.
  • Initiated By: Department of IT, BT & ST, Government of Karnataka, KSIIDC and KEONICS.

2. KITVEN Fund-5

  • Corpus: Rs 100 crore
  • Investment focus: Artificial intelligence, machine learning, robotics and electric vehicles.
  • Investment range: Rs 2 crore to 5 crore initially, with options to increase in subsequent rounds.
  • Category: Category 1 – Venture Capital Fund
  • Manager & Trustees: Karnataka Asset Management Company Pvt. Ltd. and Karnataka Trustee Company Pvt. Ltd.
  • Priority: Tier-2/3 city startups, women entrepreneurs, and ventures recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

Both funds adhere to guidelines issued by the Securities and Exchange Board of India (SEBI). Investments may take the form of equity, preference capital, debentures or a combination, with typical investment horizons ranging from three to five years.

How to apply?

Startups or entrepreneurs interested in funding can apply online at kitven.in/application-form by completing a standard form and submitting relevant documentation, such as financial statements and detailed project overviews.

KITVEN reviews the proposals on various criteria, including the viability of the product or technology, market potential and the strength of the management team.

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