The Union Government has created a ‘Fund of the Funds’ as part of its Startup Action Plan for supporting startups using the budget allocation of Rs 10000 crores. The Fund will be established at SIDBI. SIDBI, as the main lending institution for SMEs, will contribute to various Alternative Investment Funds (AIF) registered with Securities and Exchange Board of India (SEBI). These AIFs will extend funding support to Startups.
The FFS is created as a part of the Startup India Action Plan, an initiative of Department of Industrial Policy & Promotion (DIPP). The expertise of SIDBI would be utilized to manage the day to day operations of the FFS.
The FFS of Rs 10,000 crore will be built up over the 14th and 15th Finance Commission cycles subject to progress of the scheme and availability of funds. An amount of Rs 500 crore and Rs 600 crore were allocated for 2016-16 and 2016-17.
