Karnataka is giving startups a new route to test, validate and potentially sell their solutions to the government, with its ‘Government First’ initiative offering up to Rs 25 lakh per startup for pilot deployments. Under the initiative, up to 100 startups will receive support over three years, with a total allocation of Rs 25 crore. Government First has been approved under the ELEVATE programme of the Karnataka Startup Policy 2025–30 and will be implemented by the Karnataka Innovation and Technology Society (KITS). Rather than functioning only as a buyer, Karnataka wants government departments to become early customers for new technologies. Startups will get an opportunity to put their products through real-world testing, while departments can evaluate solutions before considering wider adoption. From government problems to startup pilots Government departments can identify specific problems and invite startups to develop solutions. Startups can also approach departments proactively with products or ideas that address government requirements. A third route involves piloting selected solutions in live government environments. Applications will be processed through quarterly cycles, with proposals received during each cycle evaluated together. Shortlisted solutions will be assessed for factors including innovation, technical feasibility, scalability and relevance to government use cases. Once a pilot begins, the concerned department will provide access to the required infrastructure and support. It will also monitor implementation, offer domain-specific guidance and assess how the solution performs under real operating conditions. Evaluation will cover performance, usability, cost-effectiveness, scalability and measurable impact. Solutions that deliver the expected outcomes can then move towards government procurement and wider adoption. For products that are already deployment-ready, the guidelines also allow consideration for direct procurement. Eligibility, funding and benefits Startups registered in Karnataka can apply if they are less than 10 years old and have an annual turnover of no more than Rs 200 crore in any financial year since incorporation. Their products, processes or services must demonstrate innovation or scalability and meet applicable technical, regulatory and sector-specific requirements. Solutions must also have a Technology Readiness Level of at least 7, meaning they have been validated in an operational environment and are ready for real-world testing. The programme covers physical goods, specialised services and end-to-end solutions. Areas listed in the guidelines include IT, AI, data analytics, consulting, design, logistics, hardware and other technology-enabled solutions for government challenges. Of the Rs 25 crore allocation, Rs 23.75 crore has been earmarked for startup assistance and Rs 1.25 crore for administrative and operational expenses. Each selected startup can receive up to Rs 25 lakh for pilot deployment and validation. Payment terms are also structured around implementation. Startups will receive 25% when the work order is issued, with the remaining 75% released after the user department provides a completion certificate. Intellectual property will remain with the startup unless another arrangement is mutually agreed upon. Proposals will be reviewed by committees comprising domain experts and government representatives. Their assessment will cover technical feasibility, innovation, product readiness, scalability, integration capability and socioeconomic impact. A successful solution can also move beyond its first deployment. Where relevant, products can be adopted by multiple departments, while larger government challenges can be addressed by combining solutions from different startups. Karnataka also plans to publish key programme information through a public dashboard, including work orders, implementation details and case studies. An annual report will track startups engaged, work-order values and programme outcomes. For startups, Government First creates a path that goes beyond grant funding: government problem, startup solution, live pilot, validation, procurement, wider adoption. It gives young companies a chance to establish their technology in a real public-sector setting while giving departments a structured way to assess new solutions before scaling them.