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Karnataka Launches ₹25 Crore Government First Startup Initiative

The Karnataka government has launched the Government First Initiative, a programme aimed at helping startups test their deployment-ready solutions within government departments and potentially take successful products into wider public procurement.

Introduced under the Special Initiative of Karnataka’s Startup Policy 2025-30, the programme will support around 100 startups over three years with a total outlay of ₹25 crore.

Startups Can Get Up to ₹25 Lakh for Pilots

Eligible startups can receive work orders of up to ₹25 lakh to implement and validate their solutions through government-led pilot projects.


The initiative builds on Karnataka’s existing startup support ecosystem and is designed to create a direct link between startups and government departments.

Government to Become the First Customer

A key feature of the programme is that startups will be able to propose their own solutions instead of waiting for departments to announce specific requirements.

Under a separate route, government departments can also publish problem statements and invite startups to develop solutions. Startups will not need prior government experience to participate, potentially opening public-sector opportunities to younger companies.

From Pilot Testing to Procurement

Selected proposals will go through technical evaluation before being approved for pilots. The solutions will then be tested in actual government environments against defined outcomes.

Successful pilots can progress through outcome assessment, procurement recommendation, work-order issuance and execution. This creates a pathway for startups to move beyond a technology demonstration and potentially secure government procurement.

Startups Can Retain Their IP

The programme allows participating startups to retain ownership of their intellectual property, giving them greater control over their proprietary technologies.

Solutions that prove successful in one department may also be considered for adoption by other government departments, creating opportunities for startups to expand their public-sector presence.

Focus on Deployment-Ready Technologies

The initiative will focus on technologies that are ready for real-world deployment rather than early-stage research. Areas include AI, digital governance, healthcare, agriculture, education and mobility.

A three-level oversight mechanism comprising a Selection Committee, Technical Committee and Review Committee will oversee proposal selection, implementation, milestone verification and financial monitoring.

Also Read | Karnataka to Set Up India’s First Government-Led AI University, Announces CM D.K. Shivakumar

Creating a Route from Innovation to Market

The Government First Initiative seeks to bridge the gap between Karnataka’s strong startup ecosystem and government procurement. By giving startups an opportunity to test their products in real public-sector settings, the programme could help government departments adopt useful technologies while providing startups with a potential route to larger government contracts and wider deployment.

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