Fund for Startups operate through Alternative Investment Funds: Govt
By TIOL News Service
NEW DELHI, JULY 19, 2018: THERE is no direct funding support to startups under the Startup India Programme. Govt has set up a a fund - Funds of Startups (FFS). DIPP is the monitoring agency and the SIDBI is the operating agency for this fund. It was stated by the MoS for Commerce while answering a question in the Rajya Sabha yesterday.
As per the operating guidelines issued by DIPP, FFS contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs). These AIFs in turn have to invest at least twice the contribution under FFS in startups. Each AIF sets up its own investment committee and the investment committee of each Fund takes a decision on its investment decisions. The AIFs under FFS have supported 142 startups as on June 30, 2018.
A formal mechanism has been put in place in the form of a Monitoring Committee to review progress of Startup India programme on a regular basis. The Monitoring Committee comprises representatives from DIPP, NITI Aayog, Department of Revenue (Ministry of Finance), Ministry of Micro, Small and Medium Enterprises, Department of Science and Technology, Department of Bio-Technology, Ministry of Electronics and Information Technology, Department of Higher Education and SIDBI. The Monitoring Committee continuously reviews progress and implementation of various measures for growth of startup ecosystem.
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