New Delhi:- the fund of funds created by the government for pumping money into startup in need of fresh infusion
The department of industrial policy and promotion wich is the nodal department for marketing the fund has asked the finance ministry for an additional allocation in the supplementary demand for grants. The fund announced by prime minister narendra modi in January 2016 has a total corpus of 10,000 crore to be released till 2025
Considering the fund has to be spent over the next nine years per year the allocation should be 1,100 crore we are hoping to receive funds in the supplementary budget a senior government official said . The FoF has committed 623 crore to 17 alternative investment funds set up under it and these AIF have further invested in 62 startups.
The government had provided 600 crore to the FoF in FY17.the fof was set up to support innovation driven startups and is being managed by small industries development bank of india or Sidbi.
The FOF has been created to contributed to AIF registered with capital market regulator securities and exchange board of india which in turn would invest in equity and equity- linked instruments of various startups in early seed and growth stages.
The government has relaxed norms for the venture capital funding allowing them invest a part of their corpous in firm firms other than startups