At the TN Global Startup Summit in Coimbatore, Chief Minister M.K. Stalin announced a new fund of funds with ₹100 crore to support startups in the state. Called a “co-creating fund,” it will invest in venture capital funds, which will then invest in Tamil Nadu-based startups. The goal is to attract more private and global funding and encourage risk-taking in the startup ecosystem. This fund can solve a big challenge for startups: lack of easy access to money. By giving VCs capital and guiding them to invest locally, startups in TN could get the support they need to grow faster. Currently, funding comes from direct state equity and TANFUND, but this fund-of-funds model could bring more consistent and larger investments.
Startups in TN are already growing fast. From 2020 to 2025, the number of registered startups grew at 36% per year, almost three times the national rate. About half of these startups are led by women, showing strong diversity. The government is also helping startups reach global markets through collaborations with countries like the US, Singapore, Belgium, Germany, France, Canada, and South Korea. The Vision 2035 Roadmap lays out plans to make TN a top startup hub over the next 10 years.
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