CHENNAI: The Tamil Nadu Startup Innovation Mission (TANSIM), branded as StartupTN, has decided to appoint new business advisory and support services, legal and financial due diligence services to attract more entrepreneurs and strengthen the startup ecosystem in the state.
Stating that the investment will be made in the form of equity or debt, based on the evaluation and recommendation of the investment panel, a senior department official said that for the investment team to decide, it needs three types of firms specialised in the areas of business advisory and support services, financial due diligence, and legal due diligence.
A tender has been floated, and a support services firm will study the growth potential and scalability of the target startup, he said, adding, "Also, they will advise the startup on how to scale the business and provide support to comply with all rules and regulations required."
The financial due diligence entity and legal due diligence entity would submit a report outlining potential risks or any misrepresentations involved before StartupTN grants the funds.
"Therefore, the appointed firms will identify the potential risks involved in investing in the target company and indicate the same to the client," he added.
He said all three appointed firms will coordinate with each other and are expected to share the necessary information about the target startup. "They are expected to do post-investment follow-up based on the requirements of the client," he said.
Claiming that Chennai ranked 18th in Asia in the Global Startup Ecosystem Report 2024 by Startup Genome, he noted that by the end of May 2021, the total number of startups in Tamil Nadu was only 2,300. "However, now it has increased to a little over 13,200, with women constituting 50 per cent of it."
Functioning under the department of Micro, Small and Medium Enterprises (MSME), StartupTN is responsible for nurturing an entrepreneurial ecosystem in the state. It helps startups through its funding for Schedule Caste and Schedule Tribes entrepreneurs across the State.