Indore: With an aim to promote entrepreneurship in the state, the government has created a venture capital fund. The fund will be invested in equity of startups and small and medium sized enterprises.

The initial size of the venture fund is Rs 100 crore which will be invested in firms setting up facilities in the state after clearing the appraisal system of the technical assessment team.

Kumar Purushottam, Managing Director (MD), Audhyogik Kendra Vikas Nigam (AKVN) said, “First time a venture capital fund has been created in the state. We are expecting a good response from budding entrepreneurship as majority of start up’s are coming up in Indore.”

A technical assessment team will analyse and study the proposals after which an appraisal system will be developed upon closed interaction with the start ups.

A source closed to the development of the policy said depending upon the response of the scheme the venture fund could be increased.

Initial participants in the fund will be state government, banks, financial institutions and bilateral agencies.

Priyansh Rai, an Investment Associate at a finance firm said, “This fund will boost the whole startup momentum and create awareness towards the concept and help the desirable entrepreneur. So its complimenting in nature. The exact working of this fund is yet to be decided.”

Venture fund may be allotted to any unique business idea, innovative business model and to a home-run potential. As per the guidelines the entity shall be considered as start up upto 5 years from the date of incorporation and turnover below Rs 25 crore.

 Source: Times of India