Venture Capital Funding

Scenario of venture capital funding is rapidly changing in country. Institutions dealing in Venture capital funding provides technology and management support to MSME sector. They specialize in risk sharing and providing fund at low cost. Equity financing acts as shot in the arm of the growing MSME sector in the country. Steps are being taken by government towards developing a framework for the utilisation of INR 10,000 Cr MSME Development Fund and the INR 200 Crore fund for MSME Technology up gradation as announced in the recent Union budget of 2016.

A policy framework will be developed for a seed fund which can contribute to 25% of the venture and special purpose private equity funds ranging from INR 100 – 500 Cr and focusing specific areas - adopting innovation & technology, digital India and global competitiveness.

The main public financial institution involved in venture capital funding functions is the IFCI Venture Capital Funds Ltd.