Karnataka's Kitven Launches Rs 20 Crore Venture Capital Fund To Boost AVGC Sector

Updated on: 31 January 2024 6:06 pm

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The Karnataka Information Technology Venture Capital Fund (Kitven) has introduced a specialised venture capital fund of Rs 20 crores for the animation, visual effects, gaming, and comics (AVGC) sector at the fifth edition of Bengaluru GAFX 2024.

PV Harikrishnan, the CEO of Kitven, made the announcement during the panel discussion titled 'Investor Speak - Strategies for Staying Relevant and Resilient in the Indian Gaming Start-up Ecosystem.'

The fund aims to invest in companies based in the state that contribute to the fields of animation, visual effects, gaming, and comics, as per a press statement from the IT/BT department.

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Skill Online Games Institute secretary general Srivastav said, “Karnataka has always been a pioneer, and with this launch, the state has become the first in India to set-up a fund to encourage the AVGC sector. This is a recognition of the potential in the AVGC sector and especially the enormous potential of online games for innovation and employment generation. Students and aspirants in the AVGC sector can make use of this opportunity to make their start-up dreams a reality.”

Kislay Shashwat, Principal VC at Lumikai, expressed his appreciation for Karnataka's active role in nurturing the AVGC sector. "The launch of the Kitven Fund-4 AVGC represents a significant step towards fostering innovation and development in this field. This initiative not only highlights the government's commitment but also paves the way for potential growth and advancement in the sector," he said.

Vivek Ramachandran, a VC from Matrix Partners and visiting faculty at the National Institute of Design, said, “I welcome the move and encourage aspiring students and ideators to utilize this opportunity to pursue their start-up dreams.”

The Kitven Fund-4 (AVGC) is set to play a pivotal role in empowering start-ups and encouraging innovation in animation, visual effects, gaming, and comics.

The investments in companies will be structured as equity, preferred capital (convertible/redeemable), debentures, or a combination, adhering to the regulations outlined by the Securities and Exchange Board of India.

The fund adopts an approach that considers shorter time frames while still maintaining a standard investment horizon ranging from three to five years, The Economic Times Reported.