From the government of India’s ambitious 10,000 crore Fund-of-Funds announced in 2014, almost 17 venture capital funds were sanctioned Rs 623.50 crore in FY 2016-17.
However, it must be noted that only up to 30 percent of a VC’s corpus can be raised from the fund-of-funds and can be drawn from the Sidbi only when an investment opportunity arises. So, until March end, the 17 VCs had drawn only Rs 33.63 crore of the Rs 623.50 crore committed.
The data released by the Department of Industrial Policy and Promotion (DIPP) and Small Industries Development Bank of India (Sidbi), portrays that the first full year analysis of the fund-of-fund reveals that the VCs that managed to grab a share of the fund, eventually invested in nearly 62 start-ups during the year
Since its launch in January 2016, the fund-of-funds mostly due to the slow and fairly complicated procedure of raising and deploying funds by VCs, saw limited takers.
According a report prepared by ‘Dalal Street Investment Journal’, the 62 start-ups managed to garner roughly Rs 186.84 crore in FY17, with Sidbi acting as a limited partner to the VCs. Unicorn India Ventures, Kae Capital, Orios Venture Partners, Pi Ventures, Stellaris Venture Partners and Ideaspring Capital, are among others that have invested in these 62 start-ups.
The fund-of-funds saw limited takers since its launch in January 2016, mostly due to the slow and fairly complicated procedure of raising and deploying funds by VCs.