Venture Capital

Start-ups

Synopsis

SIDBI, being an apex development finance institution, has been addressing the key requirement of availability of capital to Start-ups for the past more than two decades through supporting / subscribing to various venture capital funds / Alternative Investment Funds (AIFs) and ensuring that the support reaches the Start-ups to promote scalable models to grow unhindered. SIDBI has committed cumulatively more than ₹4100 crores to over 110 funds under its Fund of Funds operations.

  • SIDBI identifies well experienced professionals in venture funding ecosystem through its Venture Capital Investment Committee comprising VC domain experts drawn across various industry verticals, who evaluates the track record of Fund Managers having the wherewithal to understand and assess start-up businesses effectively, for support by SIDBI.
  • Some of the other key interventions includes setting up of Incubators. In order to help entrepreneurs, solve the problems commonly associated with running a startup, viz. provision of workspace, seed funding, mentoring, and training, etc., SIDBI in collaboration with premier educational institutions in the country has set up incubators. SIDBI has setup Innovation & Incubation Centre (SIIC) at IIT Kanpur, KIIT Technology Business Incubator at Kalinga Institute of Industrial Technology (KIIT) University, Bhubaneswar and SIDBI Centre for Innovations in Financial Inclusion (Sci-FI) at IIM Lucknow.

Start-ups lifecycle along with SIDBI’s interventions

Indirect Finance

Funds of Funds for Start Ups

Synopsis

In recognition of the efforts made by SIDBI in the venture capital ecospace, Ministry of Commerce & Industry, Government of India entrusted the management of Fund of Funds for Startups (FFS) with a corpus of ₹10,000 crore to support various Alternative Investment Funds (AIFs), which in turn would invest twice of SIDBI’s contribution in start-up businesses.

Funds of Funds for Start Ups

  • Launched in January 16, 2016
  • Corpus – ₹10,000 crore (to be built over 14th & 15th Finance Commission cycles.)
  • Supporting development and growth of innovation driven enterprises.
  • Fund of Funds (FFS) facilitates funding needs for Start-ups through participation in capital of SEBI registered Venture Funds.

ASPIRE Fund

Synopsis

Ministry of Micro, Small and Medium Enterprises also entrusted SIDBI with the management of ASPIRE Fund with corpus of ₹310 crore to support various AIFs, which in turn would invest twice of SIDBI’s contribution in various MSME / startup businesses, including rural and agro space

ASPIRE Fund

  • Launched in October 2016.
  • Corpus – ₹310 crore
  • Support start-ups / early stage enterprises in the areas of innovation, entrepreneurship, forward backward linkage with multiple value chain of manufacturing and service delivery.
  • Accelerator support in the agro-based Industry verticals and sectors which would galvanize the rural economy

India Aspiration Fund

Synopsis

India Aspiration Fund set up SIDBI with the support of RBI pursuant to a budget announcement is an ₹2000 crore fund introduced by SIDBI with a vision to promote and accelerate equity and equity linked investments in Start-ups and MSMEs. IAF contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs), with sector agnostic investments specifically involving MSMEs as key strategic investment sectors.

India Aspiration Fund

  • No applications being accepted now
  • Launched in August 2015.
  • Corpus – ₹2000 crore