Jharkhand: States' Startup Ranking 2019

STATES’ STARTUP RANKING 2019
JHARKHAND
ASPIRING LEADER
2 JHARKHAND | ASPIRING LEADER
Table of
Contents
1. Overview of State Startup Ecosystem....................05
2. Snapshot of State Performance...............................07
3. Pillar Wise Assessment................................................08
3.1. Institutional Support...............................................................08
3.2. Simplifying Regulations......................................................11
3.3. Easing Public Procurement.............................................13
3.4. Incubation Support.................................................................15
3.5. Seed Funding Support.........................................................17
3.6. Venture Funding Support.................................................19
3.7. Awareness and Outreach................................................20

OVERVIEW OF STATE
01 STARTUP ECOSYSTEM
The state of Jharkhand has enormous potential for industrialisation. With 40% of the nation’s mineral
resource, the state offers a promising launchpad for startups. The state has attracted investments
in the primary sector including mining and metal extraction, engineering, iron, steel and chemicals.
The major growth drivers of the engineering industry are availability of raw material, power, water
and industrial labour. Further, the state offers favorable avenues for horticulture and natural fibres.
Given the set of sectoral advantages, the Government of Jharkhand aims to create entrepreneurship
opportunities for every strata of society and aims to become one of the leading destinations for
startups by 2021. In order to ignite the spirit of entrepreneurship and innovation for people in the state
and to convert ideas into potential business opportunities, the state government outlined a Startup
Policy in 2016. The mission of the state is to create an enabling startup ecosystem and facilitate the
growth and scaling up of at least 1000 direct startups and support 1500 startups by 2021.
Jharkhand is one of the few states in the country which has connected each of the distinct pillars
of a startup ecosystem through its policy. These include infrastructure, funding, human resource
development, incentives and governance. The state has startup incubators, venture funds and an
Entrepreneurship Development Fund which have contributed to the strong growth of the startup
ecosystem.
KEY OBJECTIVES OF THE STATE’S STARTUP POLICY ARE TO:
Create 1,00,000 sq.ft. of Create a Fund of Funds Facilitate the development

dedicated incubation space (FoF) through public private of at least 100 innovative
offering end-to-end support partnership (PPP) route technology-based startups
that have a social impact
specific to the needs of the
state
Create a robust and synergetic Promote gender equality, Promote entrepreneurship

platform for the academia and environment sustainability in educational institutions
industry to supplement each and improve social factors (primary, secondary and
other’s efforts amongst others higher)
JHARKHAND | ASPIRING LEADER 5

SOME OF THE KEY HIGHLIGHTS OF THE STARTUP ECOSYSTEM IN JHARKHAND:
Infrastructure: Hybrid institution Jharkhand Venture Capital Fund: The Jharkhand Entrepreneurship
model would be utilised to establish state would create a fund of INR 250 Development Fund: The state would set
central incubation labs. These labs crore in a phased manner over the next up a dedicated corpus fund of INR 50
would be well equipped with facilities five years, starting with INR 50 crore in crore for promoting entrepreneurship in
to provide end to end solutions for the first year leading to the creation of the state and developing infrastructure
supporting other incubator centers for Jharkhand Venture Capital Fund
private, institutional and government-
aided entrepreneurship activities
Financial Support to startups: One-on-one support to startups for a broad range of areas, services and
resources as enumerated below:
− A selected group/individual would be provided with a stipend of INR 8500/- per month, free of cost
mentoring, access to lab and other facilities for up to 12 months
− The selected idea/concept would be eligible for financial support of upto INR 10 lakh for the
development of a prototype of the product/solution
− A one-time marketing grant of upto INR 10 lakh would be provided to the startups for successful launch
and marketing of the product/solution
Human capital development:

The policy encourages
upgradation in syllabus, training
and sabbatical for faculty,
provision of gap semester, State Incentives to startups: 100% reimbursement of the State
interest reimbursement of Goods and Service Tax (SGST), patent filing cost, registration
student loan and mandatory fee/stamp duty/transfer duty, a three-year moratorium on
apprenticeship for students payment of all municipal duties, 50% reimbursement on lease
rentals, 30% reimbursement on amount paid to the internet
service provider, provision of land in IT Parks/SEZ, local preference
in tender i.e exemption from criteria such as prior experience,
turnover and submission of Earnest Money Deposit (EMD). All
existing government/proposed IT/Industrial parks will have
10% of the space earmarked for startups. Special incentives
to SC/ST/women/differently abled in the form of additional
5% reimbursement on lease rentals, internet bandwidth and
electricity bills.
The state has an online startup portal (https://abvil.
jharkhand.gov.in/index.php). It includes features
such as:
• Startup registration
Partnerships: The state has partnered
• Application tracking with Internet & Mobile Association of
• Student’s Club India (IAMAI), Zoho Corporation Pvt.
• Mentor Registration Ltd, Venture Catalyst, Varhad Capital
Pvt Ltd, ‘StartUpWithRaviranjan’, and
• Relevant guidelines and notifications
‘TotalStart Entrepreneurship Ecosystem
• Upcoming & past events Developers’

SNAPSHOT OF STATE
02 PERFORMANCE
The following representation details the status of Jharkhand’s implementation on each of the 7 pillars of
assessment. Data presented below is the percentile score.
7% 0% 5% 4%
Institutional Simplifying Incubation

Easing Public Support
Support Regulations Procurement
Performance of the
3% 33% 5%
Best State in the
pillar
Relative Performance
of the State
Seed Funding Venture Funding Awareness

Support Support and Outreach
Jharkhand has been evaluated on 7 distinct pillars which largely contribute to the growth of the startup
ecosystem in Jharkhand. The representation as expressed above depicts the relative performance of Jharkhand
in each of the seven pillars in comparison to the performance of the best state in that pillar.
Jharkhand has shown progress in ‘Venture Funding Support.’ Although significant efforts have been made
to enhance the startup ecosystem, the initiatives undertaken towards ‘Simplifying Regulations’ require
improvements since results have been negligible in this pillar.
Detailed analyses of this snapshot can be viewed in the subsequent section, with extensive insight into the
initiatives taken by Jharkhand to uplift its startup ecosystem.

PILLAR-WISE
03 ASSESSMENT
1. INSTITUTIONAL SUPPORT
Institutional support envisages provisions and execution of the state’s startup policy including
information on the nodal team within the state, online implementation system, registration of mentors
and their listing on the state startup portal. The states are evaluated based on the laid provisions
along with parameters of availing benefits through state intellectual property rights portal, establishing
partnerships with institutions, providing special incentives for women led startups and entrepreneurship.
KEY FACTS
The state has a well-structured and a sector agnostic startup policy. It has a sound online implementation system for
registration, availing of incentives and for networking opportunities & events. All the policies are publicly available on the
state’s startup portal and have clearly defined benefits and incentives (both fiscal and non-fiscal) to be given to startups,
incubators, educational institutes etc.
KEY STRENGTHS
STRUCTURED STARTUP POLICY COMPREHENSIVE ONLINE IMPLEMENTATION

SYSTEM
• The policy offers incentives to enable, empower and
engage startups at each step of the entrepreneurial journey • The state has a highly interactive startup portal with
and focuses on effective short-term measures to boost dedicated features such as registration, application
entrepreneurship, revitalise economy and investment in tracking, issuance of registration certificate, query
the state in the next five years. It also lays down a strategic resolution, call centre, list of incubators & mentors and a
KEY STRENGTHS
long-term roadmap for bringing in positive change in the dashboard detailing startup activity.
mind-set of the people and in the attitude of the overall
society towards becoming entrepreneurship oriented.
• The policy is sector agnostic as the incentives/benefits
offered to startups are not restricted to specific sectors.
• The policy clearly states the definition of a startup. As per the
same, the definition of a startup is an entity incorporated or
registered in Jharkhand:
− Not prior to seven years, however for biotechnology
startups not prior to ten years,
− With annual turnover not exceeding INR 25 crore in any
preceding financial year, and
−
Working towards innovation, development or
improvement of products, processes or services, or if
it is a scalable business model with a high potential of
employment generation or wealth creation.

DEVELOPED MENTOR NETWORK
• The mentors in the state for startups include prominent

professors from Birla Institute of technology Ranchi, NIT
Jamshedpur, Indian Institute of Management (IIM), Ranchi,
CEO & founders in the state and other industry stalwarts
from the private sector. These mentors are registered and
listed on the portal.
FOCUS ON WOMEN ENTREPRENEURSHIP
KEY STRENGTHS
• The state has special incentives for women entrepreneurs
such as subsistence allowance of INR 10,500 per month.
Apart from the incentives for startups, provisions are made
for an additional 5% reimbursement on lease rentals,
STRENGTHENED INTELLECTUAL PROPERTY (IP) internet bills and electricity bills for women in the startup
SUPPORT ecosystem.
• The state has taken initiatives to encourage women
• The state has made provisions to provide strong IP support participation from sectors such as education, IT, art, food
to the startup ecosystem wherein the state reimburses & nutrition, environment, water, sanitation, and healthcare.
100% of the patent filing cost to the startups registered The participation of women from variegated sectors gives
and headquartered in Jharkhand. The reimbursement is an edge to the startup business community in the state.
provided in three stages, i.e., during filing, prosecution and
award.
SUPPORT FROM VARIOUS DEPARTMENTS
ESTABLISHING PARTNERSHIPS • The initiatives of the state are supported by other state
departments such as the Department of Agriculture,
• The state has established partnerships with institutions Department of Industries and Department of Higher
and business enterprises for augmenting the startup Technical Education. The state has organised Global
ecosystem in the state. Internet & Mobile Association of Agriculture & Food Summit 2018 with Department of
India (IAMAI) and Zoho Corporation Pvt. Ltd. as technology Agriculture wherein the summit highlighted special
partners, Venture Catalyst as investment partners, Varhad incentives for Agri Startups and Agripreneur Ecosystem.
Capital Pvt. Ltd. and StartUpWithRaviranjan as knowledge
• Directorate of Industries, Government of Jharkhand has set
partners and TotalStart Entrepreneurship Ecosystem
up a Venture Capital fund with GVFL Limited, Ahmedabad
Developers as ecosystem partners with the state to foster
which links the initiatives of the state with support of inter
growth of startups. The details of the state partners are
departments towards an increased startup growth rate in
available on the portal.
the state.

WAY FORWARD
The state needs to give importance to this pillar in order to further strengthen the startup
ecosystem. The state could prioritise actions required in three categories: short, medium and
long term. Action required in each of these categories are summarised below:-
MEDIUM TERM ACTIVITIES (4-6 MONTHS)

The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts,
results can be achieved within four to six months. Activities suggested under this category are as follows:
Establishment of a dedicated nodal department for startups

• The Department of IT & e-Gov is listed as the de facto nodal department and Secretary, Department of IT & e-Gov as the de facto nodal
officer in the state. However, a dedicated nodal department and a nodal officer are critical for fostering state level innovation-driven
entrepreneurial practices. Thus, setting up a dynamic mechanism would help resolve grievances, prepare guidelines, support and
handhold startups.
Improve mentor connect mechanism

• The state could deploy an extensive mechanism through the portal to directly connect the startups with the mentors. The contact
details and profile of the mentors could be updated on the portal for improved collaboration. Alternately, some built-in communication
platform could be offered by the state such as a virtual chat window on the portal with a domain specific email for mentors to provide
personalised support to startups in the state.
Support from other departments

• The other departments in the state could design policies, orders and schemes to additionally support and elevate the startup culture
in the state. The other departments could enlist sector specific incentives and possible synergies for startups from existing policies of
their respective areas of engagement.
• The other departments of the state could promptly notify the important and recurring events from their departments on the portal so
as to encourage maximum participation and leverage collaborated efforts towards the entire ecosystem.

2. SIMPLIFYING REGULATIONS
Simplification of regulations considers mandatory requisites for state level approvals and clearances for
registering and operating a business or startup online. In order to make compliance for startups friendly
and flexible, simplifications are required in the regulatory regime. It encapsulates regulatory issues faced
by registered startups which have been identified through an interactive online mechanism subject to
approving action by regulatory agencies. The states are evaluated based on the support provided to
startups by introducing a list of rules, regulations or Acts in the state, including amendments in the Acts
and regulations with requisite details to create a conducive environment for the state’s startups.
KEY FACTS
The state has a strong mechanism in place for identifying regulatory challenges faced by startups in various sectors and
has subsequently worked towards simplifying the policies and regulations to promote the growth of startups. The state has
proactively worked towards identifying regulatory hurdles faced by startups especially in the disruptive sectors. The state has
also institutionalised an online mechanism to connect with disruptive startups and to understand their specific regulatory
issues.
KEY STRENGTHS
SIMPLIFIED BUSINESS COMPLIANCE AND

MECHANISM FOR REGULATORY ISSUES
• The state has simplified the business mechanism for

startups with a single window portal for showcasing an
online interactive mechanism for all state approvals and Central inspections
clearances. This is an essential requirement for registering
and operating startups across various sectors.
• The URL of Single Window Portal https://advantage.
jharkhand.gov.in/SingleWindow/ is linked to the State Land bank
Startup Portal.
KEY STRENGTHS
Investor tracking
Policy feedback
IDENTIFICATION OF REGULATORY ISSUES

• Some of the options offered by single window portal are:
• The state has set up an online mechanism to connect with
startups which shares understanding about regulatory
issues faced by them and enables experiential outcomes
Approvals to startups to effectively adhere with the state regulations.
• A separate tab titled ’Regulatory issues’ is made available
on the state’s portal for the startups to have thorough
understanding of the upcoming regulatory barriers
Incentives and the process to follow the regulations with ease and
cognizance.

WAY FORWARD
SHORT TERM ACTIVITIES (1-3 MONTHS):

The activities suggested in this category are important and will take relatively less time for implementation. Through dedicated efforts,
results can be achieved within one to three months. Activities suggested under this category are:
Measures to address regulatory issues

• The state could issue government orders/notifications for making the regulatory mechanism comprehensive within the state.
• The state may also invite startups to share the identified regulatory issues faced by them with the government and in turn endeavors
could be made to create Frequently Asked Questions (FAQs) on the portal providing resolution to such issues in a phased manner.
• The state could also increase the frequency of notifications for startups in order to create awareness about the existing mechanism and
enhance the strength of the overall startup ecosystem.
Timely amendments in policy, introduction of new startup conducive rules and regulations
• Since the startups are the harbingers of change in any business ecosystem, it is the responsibility of the government to have an
adaptive approach towards an evolving business environment. This can be achieved by timely amendments in policy, introduction of
new startup conducive rules and regulations for fast changing sectors such as technology.
• In consonance to the number of regulations, rules and appropriate amendments, the state could list such amendments on a timely
basis with the details of the essential execution of the same for startups on the portal to help them understand the statutory requisites
applicable to them.

3. EASING PUBLIC PROCUREMENT
Ease in public procurement simplifies criteria to ensure participation of startups in government tenders.
The states are evaluated based on the support provided to startups in resolving issues related to state
public procurement as norms of Earnest Money Deposit (EMD), prior experience, and prior turnover which
prove to be barriers for participating startups. Easing of such norms enable startups and entrepreneurs
to avail exemptions and share an equal platform with established organisations.
KEY FACTS
The state has made the requisite relaxations for prior experience, prior turnover and submission of EMDs for startups in order
to encourage them to participate in public procurement with ease. The state has also established a strong mechanism
to provide preference in public procurement and exemptions from restricted eligibility to startups in order to foster pilot
opportunities.
KEY STRENGTHS
‘PRIOR TURNOVER’ CRITERIA AND ‘PRIOR PREFERENCE IN PUBLIC PROCUREMENT

EXPERIENCE’ CRITERIA
• The state gives procurement related preferences to all
• The state has provided 100% exemption to startups from the registered startups in the state. Also, the preference is
criteria of ‘prior experience’ and ‘prior turnover’ for the order provided in price or in value of procured goods or services.
value up to INR 5 Crore. This provision offers entrepreneurs Apart from relaxation in ‘turnover’ and ‘experience’, the
state offers at least 20% of procurement for all quantifiable
KEY STRENGTHS
and students to progressively create foundation of startup

businesses in the state. goods and services by the state and local Public Sector
Undertakings (PSUs). The state has also appointed a
dedicated officer to resolve grievances faced by startups
FULL EXEMPTION ON EMD CRITERIA FOR in public procurement process.
PARTICIPATION OF STARTUPS
• Capital availability is a constraint and submission of EMD

is an even bigger hurdle for startups specifically those in
their pilot phase. The state has provided a 100% exemption,
applicable as per the policy, to allow participation of
startups across all public tenders. The end objective of
floating a public tender is to identify an organisation that
can provide best solution at a low cost; thus, the startups in
the state are able to fulfill the objective as they are allowed
to participate in the state tenders with no deterrent of
‘submission of EMD’ criteria.

WAY FORWARD

Government order/ notification for relaxation for ‘prior experience’, ‘prior turnover’ and preference in public
procurement
The state could provide relaxation of norms through official government orders/ notifications. Consequently, with well communicated
benefits for startups, various state departments would also benefit from innovations in products and services rendered by the startups.
provide relaxation of norms through official government orders/ notifications. Consequently, with well communicated benefits for startups,
various state departments would also benefit from innovations in products and services rendered by the startups.
Improvement in the number of purchase orders/ work orders

The state has awarded work orders to a few unique startups for public procurement across the state/ Union Territory. The purchase orders
must be diversified among more businesses, since startups from various sectors such as information technology, textiles, ecommerce,
agritech, foodtech etc. exist in the state.
Time-bound grievance redressal mechanism

In order to make the process effective, the state may take some steps to make the process time bound. The turn-around time and
escalation stage can be displayed on the online account of the startup for real time status.

4. INCUBATION SUPPORT
Incubation support is an integral element of the startup ecosystem that supports entrepreneurs to
grow their businesses and assists new startups to succeed. In order to promote startups, the state
governments collaborate with organisations, corporates or industry associates to establish incubators,
to support startups in the form of capital expenditure or operational expenditure. The evaluation is
based on setting up of incubators supported by the state governments to release funds to the startups,
thereby creating a unique mechanism to provide subsidised incubation and operate acceleration
programmes in partnership with the industry.
KEY FACTS
The state has a well framed policy detailing the infrastructural support for incubation. The state has framed a Hub and Spoke
(HAS) model for developing the startup ecosystem and incubation centers. The state shall offer incentives for the institutions
of higher learning, private sector and academia. The incubators established with the help of such stakeholders would then
act as the spoke or peripheral incubation centers.
The state startup policy details incentives and provisions for the following:
• Central incubation lab (CIL)- for government aided entrepreneurial activities
• Incubation centers in higher educational institutions
• Private Incubators/Accelerators
• Industry-Academia Incubation center
• Virtual Incubator Platform
The government has six incubators in cities such as Ranchi, Sindri, Deoghar and Dhanbad. The incubators have been
successful in supporting and guiding young students and entrepreneurs to pursue their startup ventures.
KEY STRENGTHS
STRONG SUPPORT FOR SETTING UP OF NEW EFFECTIVE ACCELERATION PROGRAMMES

INCUBATORS
• The state conducted a workshop on business
communication and training for entrepreneurs. To deal
The incubators in the state have collectively supported more
with the dynamic entrepreneurial ecosystem in the state,
KEY STRENGTHS
than 40 startups. The startups belong to sectors such as

Atal Bihari Vajpayee Innovation Lab (ABVIL) has partnered
information technology, food processing, renewable energy,
with the US consulate Kolkata for professional development
agritech, arts & craft, e-commerce, automobile, environment
courses.
and waste management.
• During the training, the participants learnt about topics
The various incubators in the state are: such as networking, negotiating, business cycle, business
• Atal Bihari Vajpayee Innovation Lab, Ranchi presentations, elevator pitches, and formal pitches. The
programmes focused on preparing the participants to
• Bihar Institute of Technology, Sindri deliver an organised and well-polished business pitch in
• Birla Institute of Technology Extension Center, Deoghar front of a live audience. In the project, the specialist were
made to work with groups of 20 entrepreneurs for one week.
• Central University of Jharkhand, Ranchi
• Indian Institute of Technology (ISM) Dhanbad
• Software Technology Parks of India, Ranchi

WAY FORWARD

Conducting more acceleration programmes

The state could consider conducting more programmes in association with industry to promote innovation and ensure sustainability.
Additionally, the state could encourage enrollment of startups in acceleration programmes to provide benefits and incentives to startups
in the form of networking with investors and mentors, leverage years of cumulated experience, skill development and provide direction
and knowledge support.
Setting-up new incubators

The state may consider enabling swift action for setting up new incubators or upgrade existing incubators in the state. The state may
also support incubators by providing financial grant for capital expenditure for covering the initial cost. Additionally, the state may explore
alternative models of incubation support such as provision of rent-free space (on lease) for setting up of incubators.
Increasing the number of seats

The state has submitted details of 129 valid seats. All the seats allocated to startups could be in operational incubators. However, going
forward, the state may explore the opportunity and back it up by certificate from incubators specifying the number of seats allocated to
startups.
Subsidised incubation
The state could actively offer subsidised incubation support to the startups. Subsidised incubation entails provision of subsidy or rebate
for startups. It could be noted that this excludes support provided as capital or operational expenditure. The state could explore the
opportunity to engage private incubators and support them by reimbursing the cost of incubation. Startups could also be encouraged to
provide an official document showcasing subsidised incubation extended to startups.

5. SEED FUNDING SUPPORT
Seed funding can be in the form of a direct grant, subsidised loan, product development and marketing
financial assistance, monthly sustenance allowance or even equity seed funding. With seed funding, the
evaluation is based on the states’ endeavor to help a business grow and generate its own capital by
establishing a guideline document. The states need to ensure that startups scale with the right velocity
in order to achieve leading positions, through state investment and startup’s entrepreneurial knowledge.
KEY FACTS
The state has prioritised provision of seed funding to startups in the region. The startup online portal provides a mechanism
to avail seed funding benefits, additional funding guidelines and resources for application procedure on the portal. The portal
also includes tracking of applications and communication of approvals for startups to get real-time updates.
The State Evaluation Board evaluates and selects an innovative concept/idea based on pre-defined criteria.
• The selected individual or the group shall be provided with a stipend of INR 8,500/- per group member (maximum 3)
per month for up to 12 months as a subsistence allowance. There is additional subsistence allowance for females and
differently abled (divyang) of INR 2000 per month.
• An Individual/group has to work on idea research, development and concept validation, prototype development and
business plan development. The selected idea will be eligible for financial support of upto INR 10 lakhs for the development
of prototype of their product/solution.
KEY STRENGTHS
SPECIALISED SCHEMES OFFERING SEED FUNDING

SUPPORT TO STARTUPS
• The state has comprehensively described the benefits in

its Startup Policy and Common Incentive Disbursement
Guideline mentioning eligibility criteria, extent of seed
KEY STRENGTHS
funding and application procedure.

• The state considers seed funding to be essential for a
startup which further encourages aspiring entrepreneurs
to raise investments from Jharkhand Entrepreneurship
Development fund and Jharkhand Venture Capital Fund.
Such funding would assist startups to seek funding from
commercial banks or financial institutions.
INTERACTIVE ONLINE SYSTEM FOR SEED FUNDING
• The state has an online application system for startups

to avail seed funding. In addition, the state has an online
tracking system along with an approval system for seed
funding; thereby, simplifying the disbursement process.

WAY FORWARD

Publish information of funding beneficiaries

The state may consider sharing beneficiary data, including names of beneficiaries along with the support provided to startups in the state.
Such data would encourage other startups from different sectors to connect to the ecosystem and also other stakeholders in the network
to consider making necessary contributions to the development of the startup ecosystem in the state.

6. VENTURE FUNDING SUPPORT
Venture capital funding support is provided to the startups from state supported funds. The states are
evaluated based on the establishment of the Fund of Funds (FoF) with approved operating guidelines
and signing a memorandum of understanding (MoU) with the fund manager along with a concrete
budget allocation. Venture funding provides strong growth potential to startups wherein the fund is
used for the all-round development of startups and to levitate the startup ecosystem of the states.
KEY FACTS
• The state intends to setup various venture capital funds in the state for promoting startups with innovative concepts in
sectors such as Micro, Small and Medium Enterprises (MSME), Information Technology Enabled Service (ITeS), Biotechnology,
Energy and Clean Technologies etc. The funds shall enable startups to expand, create job opportunities, and contribute to
the growth of the state.
• The startup policy of the state highlights that the state would pool a fund of INR 250 crores in phases over the next five
years. It would start with INR 50 crores in the first year leading to the creation of Jharkhand Venture Capital Fund. A separate
corpus of INR 50 Crores would be used for promoting entrepreneurship in the state and developing infrastructure under
Jharkhand Entrepreneurship Development Fund.
• The state has signed a Memorandum of Understanding (MoU) with Gujarat Venture Finance Limited for creation and asset
management of Jharkhand Startup and MSME Fund in accordance with Jharkhand Startup Policy.
WAY FORWARD

Extend support to venture fund and increase the number of beneficiary startups
• As the state has signed a MoU with Gujarat Venture Capital fund for management of Jharkhand Startup and MSME fund, there is a need
for the state to maintain a list of startups in the state availing in-receipt of venture funding or Funds of Funds from the state.
• For full transparency, the list may also cite the details about the amount of funding received by the startups and the date of disbursement.
• Events such as angel investment workshops and regular updating of information on the startup portal of the state would help spread
awareness and reach amongst all startups of the state with the information of available resources and potential benefits of the same
to foster growth of startups in the state.

7. AWARENESS AND OUTREACH
It is the endeavor of state governments to raise awareness about the Indian startup ecosystem and
increase its outreach throughout the state. The states are evaluated based on awareness of startups
created through workshops, national and international events including bootcamps and hackathons/
grand challenges. In order to promote startups, the state encourages participatory and inclusive
processes for linking startups with angel investors and high net worth individuals. Maximum participation
is encouraged for exchange of valuable knowledge amongst startups, and pitching sessions for angel
investments with widespread propagation.
KEY FACTS
The state has been proactive in its initiatives and measures to help startups grow and scale-up. Cities such as Ranchi,
Ramgarh, Jamshedpur, Dhanbad, Deoghar, Giridih, Daltonganj and Hazaribagh have many universities providing awareness
programmes to students in order to develop a sense of starting up. The Government of Jharkhand organised the following
events to boost its entrepreneurial ecosystem–
Bootcamps Hackathons Angel National/

(8) (1) Investment International
Workshops (1) events (1)
KEY STRENGTHS
ORGANISING BOOTCAMPS
• The state has conducted a total of 8 bootcamps across the judges and the results were declared on the same day of
state each with more than 250 participants. The bootcamps the event. The event provided startups with not just financial
were a part of the Startup Yatra campaign under Startup support and workplace facility but also a good mentorship
India. Startup India Yatra initiative aims to scout grass root platform so that they could expand their business.
level entrepreneurs in the tier II/ III towns of India. The yatra • Students across 8 districts in Jharkhand won cash prizes and
provides a platform for budding entrepreneurs to realise incubation facilities across categories such as Agriculture,
their startup dream by getting incubated at excellent Prize won in Social, Technology and Womanpreneur.
facilities and taking their idea to the next level. The aim is to
connect with Startups from every district and town of India.
KEY STRENGTHS
• The objective of the yatra was to target aspiring

entrepreneurs and startups at the grass root level with the
goal of achieving the following:
• Every idea was given 2 minutes to pitch to the panel of
Startup awareness: Spreading awareness about

startup ecosystem and providing mentorship to
the budding entrepreneurs
Incubation offers: Scouting the best talent within

tier 2/3 districts of the state and providing them
incubation offers from state incubators
Other incentives: Various other incentives from the

resource partners of Startup India such as legal
consultation, advisory services, mentorship etc.

HACKATHONS
• Jharkhand startup hackathon was organised at Ranchi,

with 409 teams participating in the event out of which 50
teams were selected. The winning business pitches across
6 teams received cash prizes worth INR 1 Lakh each. Also
14 startups were given prototype development grant & 5
startups were given subsistence allowance by Honourable
CM of Jharkhand. The event was successfully able to attract
more than 300 entrepreneurs, school/college students and
teachers and proved to be a platform for startups and
mentors from other states to participate and share their
views.
KEY STRENGTHS
NATIONAL AND INTERNATIONAL EVENTS
• DoIT & e-Gov, Government of Jharkhand sponsored “TiE

Delhi - Startup Expo” organised on 28th Sept 2019. A team
of 21 selected and promising startups attended the Startup
Expo. A Special State Pavilion was provided to showcase
and provide exhibition to startups.
ANGEL INVESTMENT WORKSHOPS
• The state organised a masterclass for angel investment.

The event was successful in communicatingangel
investing scenarios to the startups in addition to apprising
them about the dos and don’ts of a successfulstartup

WAY FORWARD

Improvement in organisation of hackathons and grand challenges

More hackathons could be organised to identify innovative technological solutions and for supporting entrepreneurs in building these
solutions as viable product or service offerings
Improvement in organisation of angel investment workshops

The state could organise more workshops and networking events in the state. The state is encouraged to specify the operational guidelines
along with fiscal/non-fiscal incentives to be provided to angel investors in startups. This may ensure maximum participation from angel
investors in the workshops, which would benefit both the startup community and angel networks.
Improvement in organisation of national and international events

The state could promote participation of startups in more national/ international events and support the participants with grants,
reimbursements for travel, accommodation, registration or sponsorship may also to organisers. The national/international events could
help facilitate knowledge exchange, seminar or workshops, or pitching sessions and help in fostering innovation and developing skills
among the entrepreneurs.

CONTACT US
www.startupindia.gov.in
startup.india@gov.in
1800-115-565

Jharkhand: States' Startup Ranking 2019

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Jharkhand: States' Startup Ranking 2019

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STATES’ STARTUP RANKING 2019

1. Overview of State Startup Ecosystem....................05

2. Snapshot of State Performance...............................07

3. Pillar Wise Assessment................................................08

3.1. Institutional Support...............................................................08

3.2. Simplifying Regulations......................................................11

3.3. Easing Public Procurement.............................................13

3.4. Incubation Support.................................................................15

3.5. Seed Funding Support.........................................................17

3.6. Venture Funding Support.................................................19

3.7. Awareness and Outreach................................................20

KEY OBJECTIVES OF THE STATE’S STARTUP POLICY ARE TO:

Create 1,00,000 sq.ft. of Create a Fund of Funds Facilitate the development

Create a robust and synergetic Promote gender equality, Promote entrepreneurship

JHARKHAND | ASPIRING LEADER 5

Human capital development:

6 JHARKHAND | ASPIRING LEADER

Institutional Simplifying Incubation

Seed Funding Venture Funding Awareness

JHARKHAND | ASPIRING LEADER 7

STRUCTURED STARTUP POLICY COMPREHENSIVE ONLINE IMPLEMENTATION

8 JHARKHAND | ASPIRING LEADER

• The mentors in the state for startups include prominent

FOCUS ON WOMEN ENTREPRENEURSHIP

JHARKHAND | ASPIRING LEADER 9

MEDIUM TERM ACTIVITIES (4-6 MONTHS)

Establishment of a dedicated nodal department for startups

Improve mentor connect mechanism

Support from other departments

10 JHARKHAND | ASPIRING LEADER

SIMPLIFIED BUSINESS COMPLIANCE AND

• The state has simplified the business mechanism for

IDENTIFICATION OF REGULATORY ISSUES

JHARKHAND | ASPIRING LEADER 11

SHORT TERM ACTIVITIES (1-3 MONTHS):

Measures to address regulatory issues

12 JHARKHAND | ASPIRING LEADER

‘PRIOR TURNOVER’ CRITERIA AND ‘PRIOR PREFERENCE IN PUBLIC PROCUREMENT

and students to progressively create foundation of startup

• Capital availability is a constraint and submission of EMD

JHARKHAND | ASPIRING LEADER 13

MEDIUM TERM ACTIVITIES (4-6 MONTHS)

Improvement in the number of purchase orders/ work orders

Time-bound grievance redressal mechanism

14 JHARKHAND | ASPIRING LEADER

STRONG SUPPORT FOR SETTING UP OF NEW EFFECTIVE ACCELERATION PROGRAMMES

than 40 startups. The startups belong to sectors such as

JHARKHAND | ASPIRING LEADER 15

MEDIUM TERM ACTIVITIES (4-6 MONTHS)

Conducting more acceleration programmes

Setting-up new incubators

Increasing the number of seats

16 JHARKHAND | ASPIRING LEADER

SPECIALISED SCHEMES OFFERING SEED FUNDING

• The state has comprehensively described the benefits in

funding and application procedure.

INTERACTIVE ONLINE SYSTEM FOR SEED FUNDING

• The state has an online application system for startups

JHARKHAND | ASPIRING LEADER 17

MEDIUM TERM ACTIVITIES (4-6 MONTHS)

Publish information of funding beneficiaries

18 JHARKHAND | ASPIRING LEADER

MEDIUM TERM ACTIVITIES (4-6 MONTHS)