Karnataka Information Technology Venture Capital Fund

Before you apply

• KITVEN is a venture fund that takes equity. It is not a grant, and it only invests in Karnataka-incorporated companies.
• Pick the fund that matches your sector: AVGC, AI and ML, MedTech and electric vehicles, or the Beyond Bengaluru clusters outside the capital.
• The site is mixed on stage. One page says seed, another says the fund does not invest at idea or seed stage and wants revenue. Be ready to show revenue.

What the proposal should cover

• The market: need, value proposition, size and growth.
• Product and technology: what makes it different, barriers to entry, price and cost.
• Customers: competition, entry strategy, positioning and distribution.
• Operating plan: past results with a profit and loss extract and balance sheet.
• Funding: how much you need, for what, and projections that carry you to the next round.

Applying

• Use the application form on the site. Keep your proposal to a presentation, PDF or Word file within the upload limit shown on the form.
• Have your CIN and your company's legal and brand names ready.
• The fund managers say they can reject an application without giving reasons, so do not wait on one reply before talking to other investors.

KITVEN, the Karnataka Information Technology Venture Capital Fund, is a venture capital fund family backed by state and central government financial institutions. It says it has operated in Karnataka since 1999, with its funds managed by Karnataka Asset Management Company from Bengaluru. Its funds back startups and small companies based in the state, and several of the earlier funds are listed on its site as fully invested.

Who KITVEN backs

The gate is Karnataka. The application form asks you to confirm that the company is incorporated in Karnataka, and the investment criteria say the fund invests predominantly in SMEs and startup units in the state. Which fund fits depends on your sector. KITVEN Fund 4 (AVGC) is for animation, visual effects, gaming and comics companies. KITVEN Fund 5 is for startups and SMEs in artificial intelligence, machine learning, MedTech, electric vehicles and other disruptive technologies. The Beyond Bengaluru Cluster Seed Fund for Startups looks at IT, BT, ESDM, semiconductor and AVGC companies in the Mysuru, Mangaluru and Hubballi-Dharwad clusters. Older funds covered IT and biotechnology, and a semiconductor and electronics fund is shown as fully invested.

Stage: read this carefully

The site does not give one clean answer. The home page says the fund has focused on seed and rapid growth opportunities in Karnataka, and the Beyond Bengaluru fund is called a seed fund. But the investment criteria page says the fund does not undertake investment in idea or seed stage and only entertains companies earning revenue from their core activities. Treat KITVEN as best suited to startups that already have a product and paying customers, and ask before you assume a pre-revenue idea will be considered.

What they look for

The stated decision criteria are the management team and its track record, the size and attractiveness of the market, future earnings potential, and competitiveness. The preferred opportunities include internet services, high-end software services and innovative products that create real value for customers. The criteria page also mentions growth and expansion of established companies, moving up the value chain, and turnaround financing.

How to apply

There is an application form on the site. It asks for the legal entity name, brand name, company URL, CIN, company type, the funding requirement, the founder's contact details and an uploaded proposal. You choose the fund and sub-area you are applying to. The guidelines for entrepreneurs page lists what the proposal should cover: market need and size, product and technology, who you sell to and how you reach them, operating plan with past results, and the funding sought and what it is for. The page also says the fund managers can reject any application without giving reasons. The site gives no deadline or cohort dates, so treat it as rolling and check the site for the current call.

Past and current portfolio

The Fund 4 page lists PlayShifu, ThinkTac, MetaShot, Texperia and PropAll as its portfolio units. The older fund pages list many exits, which shows the fund has been holding and exiting investments over a long period.

Things to know

The site still carries leftover template text in places, so rely on the fund pages, the guidelines and the application form. Investment ranges are stated per fund on those pages; check them there before you plan a round.