Posted by Mumbai – Bangalore: Karnataka Information Technology Venture Capital Fund (KITVEN) has launched a dedicated Venture Capital (VC) fund of Rs 20 crore for the Animation, VFX, Gaming, and Comics (AVGC) sector during a session at the Fifth edition of Bengaluru GAFX, 2024.
P V Harikrishnan, CEO of Karnataka Information Technology Venture Capital (KITVEN) Fund announced this new fund during the “Investor Speak – Strategies for Staying Relevant and Resilient in the Indian Gaming Startup Ecosystem” panel. This initiative, under the Department of IT, Bt & ST, Government of Karnataka, is designed to invest in companies within the state contributing to Animation, Visual Effects, Gaming, and Comics.
“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!,” said Srivastav, Secretary General at the Skill Online Games Institute.
“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,” said Kislay Shashwat, Principal VC at Lumikai, a VC fund focused on India’s gaming and interactive media.
Vivek Ramachandran, a VC from Matrix Partners and visiting faculty at the National Institute of Design said, “I welcome the move and encouraged aspiring students and ideators to utilize this opportunity to pursue their startup dreams.”
The KITVEN Fund-4 (AVGC) will play a transformative role in supporting startups and fostering innovation in Animation, Visual Effects, Gaming, and Comics, further solidifying Karnataka’s position as a leader in the AVGC sector. The fund will invest in the areas of early sector, SMEs engaged in Animation, Visual Effects, Gaming and comics with an investment size between Rs. 0.50 crore to Rs 2 crore per startup.
Investments in firms will be in the form of equity, preferred capital (convertible/redeemable), debentures, or a combination, following the rules published by the Securities and Exchange Board of India (SEBI). The fund considers shorter time frames while maintaining a normal investment horizon of three to five years.