SIDBI Sanctions Rs 1,000 Crore To Startup Funds

The Small Industries Development Bank of India has sanctioned Rs 1,000 crore to 30 venture funds through the government-financed India Aspiration Fund, which seeks to support startups in their early stages.

The amount was sanctioned by the SIDBI executive committee from the Rs 1,416 crore approved by its independent advisory venture capital investment committee, Chairman Kshatrapati Shivaji said.

Earlier this month, SIDBI signed a memorandum of understanding with Life Insurance Corporation of India under which the government-owned company would contribute 10% of the fund as a co-investor.

"We got many proposals from funds, out of which 35 proposals were recommended by the VCIC to our executive committee. We have already approved 30 of the proposals worth Rs 1,000 crore," Shivaji said.

The proposals are from venture funds such as IvyCap Ventures, Blume Ventures and Exfinity Venture Partners. SIDBI will provide these funds about 15% to 20% of their total investment in startups. The remaining amount will be mobilised by venture funds from private capital and other investors, Shivaji said. "These funds will be invested to startup units. Primarily, our aim is to nudge them to make investments in the seed stage because that is when they need the maximum support," he said.

The government launched the India Aspiration Fund in August 2015 with the intention of providing equity investments to startups and micro and small enterprises and boosting employment.

In January, Prime Minister Narendra Modi announced an additional Rs 10,000 crore to support startups, which will be funded on an annual basis with Rs 2,500 crore. He also announced a tax holiday, simplification of procedures and faster closures for startups.

"The new fund announced in January means that funding of startups will not be an issue. If we need more money, the government is willing to support. This initiative is very critical for India because more than 1 million jobs have to be created every month. We cannot generate employment only through government. We have to facilitate the private sector and provide a conducive environment for their growth," Shivaji said.

It will take 12 to 18 months for the money to flow to the startups. "Due diligence takes time. This is a long-term operation of 10 to 12 years. Venture funds have to start scouting for best companies and then it will take some more time before there is financial closure," Shivaji said.

SIDBI Approves Rs 600 Crore Under India Aspiration Fund

A total of Rs. 600 crore has been approved under the India Aspiration Fund till date by the Small Industries Development Bank of India or SIDBI as it is more famously known as in the industry.

The revelation was made by Mr. Shailendra Singh, joint secretary and chief vigilance officer, department of industrial policy and promotion, ministry of commerce and industry, at the Startup India session recently held in Coimbatore. He along with Ms. Nirmala Sitharaman, Union minister of state for commerce and industry had participated actively in the session.

Earlier this year, the country saw the launch of government's much ambitious and talked about initiative Startup India by the country's very own Prime Minister, Mr. Narendra Modi. During its launch, the PM had announced the Rs 2,000 crore India Aspiration Fund in order to make capital support easily available to startups.

Speaking at the session, Singh said, "Around Rs 600 crore has been approved by SIDBI, and the amount will be released soon. Besides looking for venture capitalists, startups can apply for funds from the India Aspiration Fund."

He also divulged about the ministry of commerce's plan to introduce a web portal and mobile app for registration purposes of startups. Using the above two methods, the startup registration process will become easy, sorted and less cumbersome. Further, the details of the company will automatically be shared with all necessary departments and one will not be required to waste days running from pillar to post.

The Startup India session held at the Codissia Trade Fair complex in Coimbatore was the second such session held in the country. The session received commendable response from the people and saw the participation of 140 enthusiastic industrialists, which included esteemed members of various industry associations like the Confederation of Indian Industries, Coimbatore District Small Scale Industries Association and Indian Chamber of Commerce. Further, the expo saw some 25 young startups had set up stalls at the premises of the session.

Here's wishing the Indian startup industry all the very best for this year. Seeing the start, we can foresee a very successful 2016 for the Indian startup scene.

SIDBI Approves Rs 600 Crore Under India Aspiration Fund

A total of Rs. 600 crore has been approved under the India Aspiration Fund till date by the Small Industries Development Bank of India or SIDBI as it is more famously known as in the industry.

The revelation was made by Mr. Shailendra Singh, joint secretary and chief vigilance officer, department of industrial policy and promotion, ministry of commerce and industry, at the Startup India session recently held in Coimbatore. He along with Ms. Nirmala Sitharaman, Union minister of state for commerce and industry had participated actively in the session.

Earlier this year, the country saw the launch of government's much ambitious and talked about initiative Startup India by the country's very own Prime Minister, Mr. Narendra Modi. During its launch, the PM had announced the Rs 2,000 crore India Aspiration Fund in order to make capital support easily available to startups.

Speaking at the session, Singh said, "Around Rs 600 crore has been approved by SIDBI, and the amount will be released soon. Besides looking for venture capitalists, startups can apply for funds from the India Aspiration Fund."

He also divulged about the ministry of commerce's plan to introduce a web portal and mobile app for registration purposes of startups. Using the above two methods, the startup registration process will become easy, sorted and less cumbersome. Further, the details of the company will automatically be shared with all necessary departments and one will not be required to waste days running from pillar to post.

The Startup India session held at the Codissia Trade Fair complex in Coimbatore was the second such session held in the country. The session received commendable response from the people and saw the participation of 140 enthusiastic industrialists, which included esteemed members of various industry associations like the Confederation of Indian Industries, Coimbatore District Small Scale Industries Association and Indian Chamber of Commerce. Further, the expo saw some 25 young startups had set up stalls at the premises of the session.

Here's wishing the Indian startup industry all the very best for this year. Seeing the start, we can foresee a very successful 2016 for the Indian startup scene.