Finance Minister Nirmala Sitharaman has announced an expansion of the Small Industries Development Bank of India (Sidbi) Fund of Funds for Startups (FFS), with an additional allocation of Rs 10,000 crore. This increases the scheme’s total outlay to Rs 20,000 crore.
The FFS, started in 2016 under Startup India, doesn’t make investments in startups but in Alternative Investment Funds (AIFs) investing in emerging ventures. As of now, over Rs 11,000 crore have been pledged to venture capital and venture debt entities including Stellaris Venture Partners, Sorin Investments, Fireside Ventures, Chiratae Ventures, Trifecta Capital, and Alteria Capital.
Other than the FFS, the government runs a scheme for a credit guarantee for startups, providing a guarantee for startup loans approved under DPIIT, and Startup India Seed Fund Scheme (SISFS), providing funding for early stage companies for developing and commercialising a product.
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Source: Moneycontrol
News Desk
