#1Startup Ecosystem in Karnataka US Roadshow April 2023 Karnataka Digital Economy Mission#2India: 75 years of democracy - key achievements 100x rise in GDP; currently at USD 3.5 Tn 500x rise in per capita income; currently at USD 2,300 500x rise in total exports; highest ever exports of USD 660 Bn in 2021-22 Karnataka Digital Economy Mission Growth rate 8.7% (FY21-22) ₹ 5th largest economy; jumped 6 positions since 2012 Annual FDI doubled in last 8 years (launch of Make in India in 2014); USD 35 Bn to USD 84 Bn in a decade 2nd largest working population of 522 Mn with median age of ~29 years During pandemic, India witnessed V-shaped recovery; GDP contracted 24% in first quarter of the year before bouncing back to 20% in 4th quarter#3Amrit Kaal: Vision 2047 Economy 2nd largest USD 32Tn Per Capita Income 10X USD 20,000 Manufacturing GDP 15X USD 6.2Tn Karnataka Digital Economy Mission Services GDP FDI 13X USD 20Tn 12X USD 1Tn Exports 12X Human Capital Largest and Youngest working population USD 8Tn Shri Narendra Modi Hon'ble Prime Minister of India "India is making making policies keeping in mind the goals of next 25 years. In this time period, the country has kept the goals of high growth and saturation of welfare and Median age of 29 wellness". years 'State of World' address World Economic Forum, 2022#4Technology: Digitally Empowering Indian Society ሰበ 1.3 Bn people with unique digital identity India's Scale and Speed Karnataka Digital Economy Mission 1.3 Bn Internet Users by 2030 #2 in Mobile phone users (1.2 Bn); Smartphone users (750 Mn) 命 61% internet penetration #1 Fintech adoption rate 74 Bn digital transactions worth USD 1.6 Tn in CY 2022 USD 1Tn digital economy by FY 2025 کجا 30x reduction in data cost; amongst lowest globally $0.68 per GB 373 Mn Estimated Rural Internet Users#5Karnataka's Startup Story in Numbers 10K DPIIT registered startups $64 Bn As on 2022 (Venture Capital raised by Bengaluru based start-ups) 4K+ active tech startup investors in the state Karnataka Digital Economy Mission 40 44 tech unicorns tech soonicorns in Karnataka 138+ accelerators and incubators 47 Innovation hubs 304 mergers and acquisitions as of 2022 8 Centres of excellence 1.7K funded tech startups- highest number in our country#6Bengaluru- Leading the Indian Startup Ecosystem Karnataka Digital Economy Mission Startup Hub Total Startups Launched New Startup Launched 3-Year- CAGR* (2019 to (Up to 2022) (2019 to 2022) 2022) Top 5 Indian Startup Hubs 2022- Despite the funding winter in calendar year 2022, Bengaluru had the highest number of unique investor count. Bengaluru 18K 4.6K 7% Delhi NCR 15K 4K 6% Mumbai 11K 2.4K 6% Startup Hub Unique Investor Median Ticket Size (2022) Count (2022) Bengaluru Remains Undisputed Leader- 50% Share In Mega Deals Despite the ongoing venture capital inflow correction in Indian startups, Bengaluru bagged 53% more deals valued at $100 Mn or above in 2022 as compared to Delhi NCR Bengaluru 1.1K $5.5 Mn Delhi NCR 930+ $ 3 Mn Mumbai 660+ $3.4 Mn Chennai 160+ $5 Mn Hyderabad 130+ $2.3 Mn#7Karnataka Digital Economy Mission VC Funding Bengaluru-Investors are bullish about seed-stage ecosystem which saw a CAGR growth of 60% depicting the high-risk taking capability of the investor ecosystem to support innovation Funding Amount (2014 to 2022) Deal Count (2014 to 2022) 5-Year- Funding- CAGR (2017 to 2022) Seed Stage (Angel/Seed) $2 Bn 1.5k 60% Growth Stage $13 Bn 876 21% (Series A & B) Late Stage $49 Bn 495 4% (Series C & Above) Bridge Funding $552 Mn 303 104% (Pre-Series Rounds)#8Khatabook Kredit Bee Sector-Wise Landscape Of Unicorns and Soonicorns In Bengaluru COINSWITCH KUBER Fintech CAPITAL FLOAT CRED Zeta ZERODHA digit Cashfree FOJUSPAY Karnataka Digital Economy Mission Groww Razorpay open PhonePe slice ⑪ Money View™ Niyo R Refyne Rupeek scripbox® UNI Z zest Enterprise Tech POSTMAN amagi apna INMOBI HASURA leadsquared O ZETWERK Mu Sigma Flipkart Licious LIVSPACE meesho MENSA Fudaan BORN TO MEAT HOUSE OF BEANS E- betterplace captain exotel HHackerRank moengage BBYJU'S fresh unacademy Vedantu The Learning App commerce BLUESTONE Jumbotail FURLENCO wakefit MyGate whatfix WOW™ SKIN SCIENCE Edtech cuemath THE MATH EXPERT PlayShifu SCALER Teachmint bb bigbasket Quikr SWIGGY Consumer Services Unicorns (40 in number) Top-Sectors DUNZO HomeLane tohome Fresh • 10 Fintech • 8 Enterprise tech • 7 E-commerce OLA O OLA ELECTRIC Others rapido ZZoomcar BIKE TAX NOBROKER.COM cure.fit BLACKBUCK Rent | Buy | Sell Pocket FM netradyne ② ATHER ninjacart Media & Entertainment pratilipi VERSE glance MPL MOBILE PREMIER LEAGUE ShareChat Healthtech HealthifyMe MEDGENOME mfine practo $170 Bn+ combined valuation $49 Bn+ combined capital raised Soonicorns (44 in number) Top Sectors • 15 Fintech • 7 Enterprisetech • 4 Ecommerce $16 Bn+ combined valuation $7 Bn+ combined capital raised#9Karnataka- Leading AI Hub AI Opportunities in Bengaluru 31,000+ AI talent pool; 250,000+ data scientists; 28.6% of open jobs in AI; AI & Robotics Technology Park [ARTPARK] in Bengaluru Joint initiative of IISC and AI Foundry (seed funding by DST and Govt. of Karnataka) • • . NorthStar Create opportunities for growth for everyone Lower the cost of living with AI & Robotics Access to AI enablement by connecting AI rich clusters in the US, Canada, UK & EU with India, Middle East, Southeast Asia & Africa Activities • Nurture AI & Robotics startups ART Venture Fund ($100mn) Moonshots for Societal Scale AI Growth of AI Talent 41% of 0.114 million AI job postings from Karnataka 90 AI and robotics colleges (95% pvt. And 5% govt. funded) Set up of CoE- 400 Million INR 35000 estimated jobs by AI hub Globally Competitive AI products by Bengaluru start-ups 1870+ AI startups have raised USD 2Bn in cumulative investment 62% of total AI investments in India received by Bengaluru based startups Leading Public Sector R&D Undertakings located in Bengaluru • ISRO • HAL DRDO Karnataka Digital Economy Mission#10Karnataka Digital Economy Mission Academia and Start-ups "Bengaluru has an ecosystem of globally reputed high-quality academic Institutes - IISC, IIITB, NLSUI, NIMHANS, IIITB. IIITB had seen students pursuing entrepreneurial route from its inception back in 2000. In the very first batch we had students founding startups, of which one is still thriving 19 years later. The trend continues today. There are 64 startups that have IIITB alumni as a founder in varied areas including AI, Analytics, Ecommerce, Sustainability and others!"- Prof. S. Sadagopalan, Director IIIT, Bengaluru Impetus on Research Bengaluru is home to premier Science & Tech, and Management institutions- IISc, IIM-B, IIIT-B, PESIT 100+ out of 800+ colleges are engineering colleges 100K+ engineering students graduate each year Stats about start-ups originating from academic institutions- IISC, IIM-B, IIITB, PESIT, DERBI, NSRCEL 800+ startups 56 patents held by startups 34 startups used institutions' tech/research 53K+ entrepreneurs inspired/jobs created#11Talent For Future Jobs In Bengaluru Is Disproportionately High. Karnataka Digital Economy Mission Bengaluru stands at a center with a large infrastructure of technical universities and colleges with the ability to nurture their students for the futuristic jobs. Key Areas Of Futuristic Skill •Biomedical engineering •Augmented reality •Virtual reality •Metaverse •Machine learning ⚫3D printing •Data security •Financial management •AI •Robotics Karnataka Education Landscape 2022-23 72758 Number of schools (Govt aided and unaided) 25K+ Junior primary schools 36K+ Senior primary schools 15K+ Secondary schools 211580 Number of teachers (Govt aided and unaided) 10678076 Number of students (Class 1-10) 1358552 Number of students (Class 11-12) 4300+ Colleges 733 AICTE approved institutes 250404 Total student intake in AICTE approved institutes 120+ AICTE Collaborations (MoU) with other Organizations 70+ Universities 460+ Institutes to study medicine and nursing#12Karnataka Government as an Enabler - NAVRATNA 4. Women Entrepreneurship 3. Public Procurement 2. Regulatory 1. Infrastructure IIIII 5. Fiscal/Economic Karnataka Digital Economy Mission 6. Grassroot Innovation/Rural Innovation Startup Ecosystem 7. Public Private Partnership 8. Enablement 9. Startup Skilling Program#13Karnataka Government as an Enabler- Start-Up Policy Karnataka Digital Economy Mission Pillar 1- Creating and Strengthening of New Age Innovation Network Pillar 2-Fostering strong partnerships between Academia &Industry Pillar 3-Funding for start-ups Pillar 4-Supporting Mentorship and Creation of Incubation & Acceleration Infrastructure Pillar 5-Supporting Mentorship and Creation of Incubation and Acceleration Infrastructure NAIN 2.0 in Technology Institutions of Higher Education Technology Business Incubators (TBIS) 2.0 Idea 2PoC Grant- In-Aid Scheme- ELEVATE Facilitation for Setting Up New Incubation Centres by Private Entities Building Inclusive & Equitable Startup Ecosystem Strengthening of NAIN 1.0 Centres Support to Technology Business Incubators (TBIS) 1.0 Startup Funding through Fund of Funds Incubation Centres-Support for Upgradation/ Expansion Women Entrepreneurship Collaboration with Ecosystem Partners Beyond Bengaluru Cluster Seed Fund Acceleration Network Facilitate Investor Connect/PoCs for Startups On Demand Virtual Incubation and Mentorship Connect Platform Social Inclusion#14Karnataka Government as an Enabler- Start-Up Policy Pillar 6- Fostering Social and Rural Entrepreneurship Pillar 7-Channelizing Innovation for Societal Impact Pillar 8-Enablement and Facilitation Pillar 9- Providing State support in the form of incentives & concessions Rural Innovation Centre Grand Challenges Karnataka (GCK) - Innovative solutions for societal impact Open Data Access Reimbursement of State GST Experiential Internship Support Accelerating Transition to Circular Economy Leveraging GCC Environment to drive Innovation Marketing Cost Reimbursement Ease of Doing business Patents Filing Cost Reimbursement Global Innovation Alliance Connect Quality Certification Cost Reimbursement Karnataka Digital Economy Mission#15Creating future ready institutions Karnataka Digital Economy Mission 30 NEW AGE INNOVATION NETWORKS Innovation Ecosystem at District Level Approx. 60,000 sq. ft. area Up to INR 3 lakh for Student Projects 30 NAIN Colleges, 19 Districts 470 Projects Funded, INR 4.83 crore 171 Projects Completed & 13 Patent filed 30 Companies Formed 8 Centres of Excellence(CoE's) Aerospace and Defence - Dassault Systems Agro Innovation - C-CCAMP Cybersecurity - IISC Machine Learning & Robotics - IIIT-B Data Sciences & AI - Nasscom Internet of Things (IoT)- Nasscom AVGC-ABAI Semiconductors - IESA The state also runs 5 Common Instrumentation Facilities (CIFS) in Bengaluru, Mysuru, Shivamogga, Belgavi and Mangaluru#16Karnataka Digital Economy Mission KDEM: BY THE INDUSTRY FOR THE INDUSTRY Function as the knowledge bridge between the Government of Karnataka and the industry with a view of accelerating the growth and investments of the IT, ESDM and S&T sectors in Karnataka • Promote the growth of digital industry • Attract investments by providing hand-holding services and suggesting policy initiatives to be taken up by the State Government for facilitating investments Help in increasing the contribution of Digital Economy in the State 40% GSDP from Digital economy and creation of 30 Lakhs+ (Direct and Indirect) jobs. Skill 2 Million people in the new emerging technologies including job earning skills 10X Investment in next 5 Years under ESDM (EMS, FAB, ATMP, Supply Chain) 5% States GDP will come from Startups with ~100 Unicorns and ~300 Sonicorns Rural Innovation Hub of India covering Agri, Education and Healthcare IT Products & Services, BPM and GCC Promotion ESDM Talent Accelerator Focus Areas Shri Basavaraj Bommai Hon'ble Chief Minister of Karnataka "Karnataka Beyond Bengaluru Innovation & Start-ups contribute trillion to Cluster presence: Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi will $1.5 Indian economy by 2025". Vision of Karnataka 2025' March 2022 Conclave:#17Karnataka Digital Economy Mission KDEM: Beyond Bengaluru Cluster Seed Fund - Overview objective ■ Principal innovations ■ ◉ - to make Beyond Bengaluru Clusters hub of Start-ups and Objective is to have at least 10,000 start-ups from these clusters by 2030 Government of Karnataka, KDEM and Industry anchors has designed and suggested to set up a Beyond Bengaluru Cluster Seed Fund of INR 75 Cr. i.e INR 25 Cr. each for each of the three clusters ■ Focussed Clusters: Mysuru cluster Mangaluru cluster Hubballi-Dharwad-Belagavi cluster Expected Outcomes Expected to invest in 15-20 innovative start-up companies under each cluster ■The target employment generation will be around 400-500 and the estimated revenue generation from all companies will be around INR 40-100 crore#18KDEM: Karnataka Acceleration Network - Overview Karnataka Digital Economy Mission Bangalore Based Mentor Accelerator 1 Accelerator 2 Accelerator 3 === Mentee Mysore Cluster Mangalore Cluster HDB Cluster Beyond Bangalore Based Mentor-Mentee accelerator shall support at least 17 Startups per cohort together expecting 7 in Bengaluru and 10 in cluster#19KDEM: Our global connect Germany Israel Netherlands Switzerland UK USA France Canada Finland Japan Australia GIA partners with startup collaboration Global Innovation Alliances GIA Market Access Program: To help startups enter new markets, establish international partnerships, and increase global sales; GIA Tech Engagement Meet: Event to introduce Karnataka startups to GIA country startup ecosystem for collaboration Australia: MedTechs Got Talent For Karnataka startups to enter Australia's largest medical device accelerator Finland: i-Samarth program Mentorship, training and lab facilities provided to Karnataka startups in Nokia Bengaluru UK: Go Global Skilling workshops and networking events in UK for Karnataka startups Our Partners PHIX H Karnataka Digital Economy Mission Abu Dhabi Global Market Israel Innovation Authority German Accelerator London & Partners NIPA EU India Innocentre#20Karnataka Digital Economy Mission Beyond Bengaluru Accomplishments Notable investors I Hubballi - Belgavi - Dharwad 400+ Startups; 80+ Funded startups; 65+ Trademarks registered; 4,500+ Jobs added; 90+ IPs file; 30%+ Women entrepreneurs; 5+ acquisitions worth INR 1,500 Cr Stakeboat Capital, Y Combinator, Sandbox Startups, Rebel Foods, Prime Venture Partners, Indian Angel Network Mangaluru 200+ Startups; 3,000 Top skills-Finance & Accounting; 5,000 HR & Knowledge Services;6,000 QA, Testing & IMS; 10,000 Application Development & Maintenance (IT); 7,000 Software Products CIIE.CO, Riidl.org, IndiaRF.com Mysuru 240+ Startups ;8,000 in Finance & Accounting skills; 11,000 HR & Knowledge Services; 11000 QA, Testing & IMS; 19,000 Application Development & Maintenance (IT); 13,000 Software Products Ascent Capital, Startup India, JITO Angel Network Primary sectors Notable startups Foundry, Automobile, SaaS, Edtech, Agritech, AI/Data Science Docketrun, Labinapp, Careerboat, Vayavyalabs, Ecomjetco, Cautomate Other initiatives • Cluster seed fund: INR 25 Cr Acceleration Network Kalyana Karnataka: EDP Women Elevate Elevate Beyond Bengaluru Startup Grid • . • Fintech, IT Diya Systems, Novigo Solutions, Semnox Solutions, Codecraft Technologies End-to-end support for setting up an IT/ITES entity Costs efficiency compared to Bengaluru- 25% for talent; 46% for infrastructure Government subsidies: 10% through government subsidies Design Manufacturing (ESDM), Cybersecurity, Enterprise Services, Electronics System Skanray, Sportiwe, S3V vascular Technologies INR 223,305 Revenue (2019-20) • 15 industry sectors • 10+ renowned academic institutions • 88,000 total available talent pool • 30%+ women entrepreneurs • 120+ startups onboarded . 230 ESDM companies#21THANK YOU!! 147 KEONICS - K-WINGS, [email protected] | in 27th Main Rd, 1st Sector, HSR Layout | (behind HSR Police Station), Bengaluru |