EXCLUSIVE: Rs 10,000 crore Fund of funds announced at #Startup India to be disbursed via SEBI-registered VCs
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For access to the Rs10,000 crore Fund of funds that Prime Minister Narendra Modi announced at the Startup India, Standup India event today, startups, you need the approval of Venture capitalists and private equity firms.
Yes, just in case you thought you could directly approach the government, that's not the case. Not clear? Here’s how you go about it.
Instead of the government giving it to startups directly, this Fund of funds will only be disbursed to VCs and private equity firms that have been registered withSEBI . This would mean any VC looking at funding a particular startup may get this easily available fund at lower rates from the government. But not every VC or PE can get it, only the ones registered with the SEBI.
So, first step is any company seeking any amount will have to first propose it to the VCs and get them to agree to it. Once they have agreed, half the job is done as they can then head to the government for accessing this readily available fund meant for startups.
The Fund of funds has been welcomed by the industry. Reacting on the announcement, Paytm founder Vijay Shekhar Sharma who was a part of the event today, said “It's a much better way of disbursing funds” because he felt “now startups have a clear route of getting their objectives through.”
(Image credits: Reuters)
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Yes, just in case you thought you could directly approach the government, that's not the case. Not clear? Here’s how you go about it.
Instead of the government giving it to startups directly, this Fund of funds will only be disbursed to VCs and private equity firms that have been registered with
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The Fund of funds has been welcomed by the industry. Reacting on the announcement, Paytm founder Vijay Shekhar Sharma who was a part of the event today, said “It's a much better way of disbursing funds” because he felt “now startups have a clear route of getting their objectives through.”
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