Start-up Ecosystem In India

Start-up funding crawls: 20 months, Rs 70 crore


Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

The following things are important from UPSC perspective:

Prelims Level: Particulars of the FFS

Mains level: The article shows the inability of implementing the FFS scheme, by the government. Government needs to counter the issue.


Fund-of-Funds for start-ups (FFS) is showing slow progress

  1. FFS was launched in line with the Start-up India Action Plan of the Government
  2. It is a Rs 10,000-crore Fund
  3. The fund under the plan has made slow progress with only about Rs 70 crore having been disbursed to start-ups until the beginning of this month

Aim of launching the fund

  1. The Fund was launched with aim to invest in local venture capital funds
  2. It has made commitments to 62 start-ups
  3. All these 62 start-ups were backed by Alternative Investment Funds (AIFs) where state-owned SIDBI (Small Industries Development Bank of India) acted as a limited partner
  4. What is an AIF: An AIF is any fund established or incorporated in India that is a privately pooled investment vehicle, which collects funds from investors(Indian or foreign) for investing it in accordance with a defined investment policy for the benefit of its investors
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