New Delhi: Since its launch in January 2016, the government’s Rs10,000 crore Fund-of-Funds for start-ups has faced a few too many brickbats.
Up until last month, the conditions for raising capital from the Rs10,000 crore Fund-of-Funds, which was meant to invest in local venture capital (VC) funds that would, in turn, back early-stage companies, were seen to be far too restrictive and discouraged investors.
The slow and often complex process of raising and deploying of funds by VCs (it may be years between a VC raising capital and making its first investment) also made it seem like the government scheme had failed to make a meaningful impact.
However, data released by the Small Industries Development Bank of India (Sidbi) and Department of Industrial Policy and Promotion (DIPP), the first full-year comprehensive analysis of the Funds-of-Funds scheme, throws up a rather optimistic picture.
In the year ended March, as many as 17 VC funds were sanctioned Rs623.50 crore from Fund-of-Funds corpus. These funds in turn invested in 62 start-ups.
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