SME Times News Bureau | 11 Dec, 2019
Under Startup India Initiative
recognized startups have been exempted under several sections of IT Act, an
official said on Wednesday.
The Fund of Funds for Startups
(FFS) was approved by the Cabinet and established by Department for Promotion
of Industry and Internal Trade(DPIIT) in June 2016 with a corpus of Rs 10,000
crore to provide a much needed boost to the Indian startup ecosystem and enable
access to domestic capital.
The objectives of Fund of
Funds include accelerating innovation driven entrepreneurship and business
creation, mobilizing larger equity-like resources for startups.
The Fund of Funds does not
directly invest in start-ups but provides capital to SEBI-registered Alternate
Investment Funds (AIFs), known as daughter funds, who in turn invest money in
growing Indian startups through equity and equity-linked instruments.
SIDBI has been given the
mandate of managing this Fund through selection of suitable daughter funds and
overseeing the disbursal of committed capital.
As on 21st
November, 2019, SIDBI has committed Rs 3123.20 Cr. to 47 SEBI registered
Alternative Investment Funds (AIFs).
These funds have raised a corpus
fund of Rs. 25,728 Crore. Rs. 695.94 Crore have been drawn from the Fund of
Funds for start-ups. Rs. 2,669.83 Crore have been invested into 279
startups. There is no provision for State/UT-wise distribution of funds
jobs are reported by 23,657 DPIIT recognized start-ups, as on 4th
December 2019. The breakup of the number of start-ups with number of
employees State/UT-wise is attached at Annexure-II.