Gujarat Launches Rs 10 Cr Growth Fund for Tech Start-ups

How the two-tier model works

The fund uses the Technology Readiness Level (TRL) scale, a widely used global measure that tracks an innovation from basic research to a market-ready product.

Start-ups at TRL 4 or below will be eligible for grants of up to Rs 30 lakh. The money can be used for proof of concept, technology validation, trials and related development work. At this stage, most private investors stay away because the technology is still unproven.

Ventures at TRL-5 and above can get equity-linked convertible funding of up to Rs two crore per start-up. This covers pilot manufacturing, technology demonstration, pivoting and market-oriented development, which are the costly steps that often decide whether a prototype ever reaches customers. Because the funding is convertible, the state can share in a start-up's success while still giving it support it can afford.

Why it matters

Modhwadia placed the scheme in the context of Gujarat's place in the national start-up landscape. He said around 2.6 lakh start-ups are registered across India, and Gujarat accounts for an estimated 18,000 to 20,000 active ventures.

"The new scheme would provide technology-based start-ups with financial support to take innovations from laboratories to the market," he said.

He also pointed to a change in what young people want. More of them, he said, are choosing to start businesses and create jobs instead of only seeking government or corporate employment. "The state government had introduced specific policies to help young entrepreneurs take their ideas from the conceptual stage to production," he noted.

The Growth Fund adds to a larger state push. Gujarat has rolled out policies on semiconductors, electronics and SpaceTech, along with a Science, Technology & Innovation Policy 2026–31 backed by an INR 1,000 crore innovation fund. Compared with that, the Rs 10-crore fund is a targeted tool for one specific bottleneck.

Modhwadia urged stakeholders to use government policies, scientific infrastructure and technology platforms. He added that strategic global partnerships could help the sector grow faster.

Support beyond money

The conclave also announced eight regional Innovation Cells of STBI across six zones of Gujarat. This could take incubation support beyond the major cities. Other initiatives included a cohort-based acceleration platform, the "Atmanirbhar Gujarat Fellows" programme and steps to promote shadow internships. STBI also signed MoUs with nationally recognised accelerator agencies.

STBI Director Dr Anand Bhadalkar attended, along with representatives from start-ups, industry, investment firms, incubators and accelerators.

With Rs 10 crore in total, the fund can back only a limited number of ventures, especially at the Rs 2-crore level. Its real impact will depend on picking the right start-ups and on whether its support brings in private investment afterwards.

(With inputs from IANS)