Tamil Nadu has launched several initiatives for promoting innovation and entrepreneurship development as an integrat part or the economic objective of achieving US $1 tn GDP by 2030. Tamil Nadu Emerging Sector Seed Fund (TNESSF) is a SEBI registered CAT-IAIF set up as a part of the policy initiatives of the Government of Tamil Nadu with an anchor investment of Rs. 100 Cr. The fund is sponsored by TIDCO, TIDEL and managed by TNIFMC.

OBJECTIVES TNESSF is sector agnostic Fund that caters to the broad-based economy of the state and will focus on investing in:

• a) Innovative and High Growth Enterprises
• b) Sunrise and Emerging Sectors
• c) Startups and MSMEs (up to Rs 250 Cr revenues)
• d) Addressing market gaps with innovation/ technology/cost efficiency

INVESTMENT SIZE TNESS targets to invest Rs 3 to 10 Crores per round in equity or convertibles. Larger investment size may be considered for mature companies. The Fund may also consider investment sizes up to Rs 1 Cr for early-stage enterprises to reach their next milestone.

KEY EVALUATION CRITERIA

• Track record of the promoters
• Growth prospects of the company
• Capital efficient business models
• Economic and social impact for Tamil Nadu
• ESG adoption and commitment
• Attractive exit potential

ADVANTAGES OF INVESTMENT FROM TNESSF

• Access to Government networks
• Credibility of Institutional backing
• Follow-on funding based on mileston
• Business support networks