Alternate funding funds (AIFs) have sought from the federal government particular funds for investments in new-age, dawn and deep-tech startups with a view to selling innovation within the nation, an official mentioned.
They’ve additionally urged the federal government to announce a recent spherical of funds beneath the Fund of Funds for Startups (FFS) scheme.
These calls for have been raised throughout a gathering between AIFs and the officers of the Division for Promotion of Business and Inner Commerce (DPIIT) right here final week.
The division held discussions with AIFs on methods to advertise funding for startups within the nation, the official mentioned.
“Within the assembly, AIFs demanded extra funds beneath FFS. They demanded a rise within the length of FFS from the present 12 years,” the official added.
At current FFS is sector agnostic. The AIFs have prompt particular funds for the dawn and new-age sectors.
Points like capital mobilisation and selling funding for startups in smaller cities have been additionally mentioned in the course of the assembly.
The FFS was authorized and established in 2016, with a corpus of Rs 10,000 crore, with contributions unfold over the 14th and fifteenth Finance Fee cycle based mostly on the progress of implementation, to supply the much-needed increase and allow entry to home capital.
The scheme has been established to catalyze enterprise capital investments and is operationalized by the Small Industries Growth Financial institution of India (SIDBI), which offers capital to the Securities and Alternate Board of India (SEBI)-registered AIFs, which invests in startups.
Among the many outstanding AIFs of main startup funding companies supported beneath FFS are Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Monetary, and Fireplace Ventures.
AIFs supported beneath FFS are required to speculate at the least two occasions the quantity dedicated beneath FFS in startups.
As of October 31, 2024, a complete of Rs 20,572.14 crore has been invested by the FFS-supported AIFs in startups. These AIFs have dedicated to speculate Rs 1 lakh crore.
With an intent to construct a powerful ecosystem within the nation for nurturing innovation and selling startups, the federal government launched the Startup India initiative on January 16, 2016.
