SIDBI, Bihar Start-up Fund Trust Ink Pact For Enhancing Startup Ecosystem in Bihar The fund shall not invest directly into start- up companies, instead it shall contribute to the corpus of SEBI registered Alternative Investment Funds, which in turn shall invest in startups.
By Priya Kapoor
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With an aim to transform Bihar into a startup hub, Small Industries Development Bank of India (SIDBI) and Bihar Startup Fund Trust have collaborated to administer the INR 50 crore Bihar Startup Scale-up Financing Fund (BSSFF). The fund, to be managed by SIDBI, shall be in the form of a Fund of Funds. In this model, the fund shall not invest directly into start- up companies, instead it shall contribute to the corpus of SEBI registered Alternative Investment Funds, which in turn shall invest in startups.
Department of Industries, Government of Bihar, Shri Pankaj Dixit, IAS, Director Industries and Shri Arijit Dutt, General Manager, representing SIDBI formally signed the agreement.
Bihar Start-Up Fund Trust ("BSFT") is a nodal agency constituted by Department of Industries, Government of Bihar for implementation of Bihar Start-Up Policy of the Government of Bihar. The Policy aims to foster entrepreneurship and promote innovation by creating an ecosystem that is conducive for the growth of start-ups in the state. Under the Policy, the Government of Bihar has set-up Bihar Start-Up Fund Trust with an initial Corpus of INR 500 Crores. Out of this fund, Bihar Startup Scale-up Financing Fund (BSSFF) has been established with an initial corpus of `50 Crores for scale-up funding support to startups.
Since, its formation in 1990, when the risk capital and VC ecosystem for innovative enterprises and startups was nearly non-existent in the country, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative, and inclusive approach.
Over the last 3 decades, SIDBI has taken several pioneering steps to support building up of startup ecosystem including support out of its own balance sheet. SIDBI supported setting up of several schemes on its own before emerging as a key partner of the Government of India and several State Governments for managing their vision in Startup space through Fund of Funds interventions. Apart from FFS, it also manages ASPIRE Fund of Funds of Ministry of MSME with focus on Agro and Rural enterprises, and state focussed Fund of Funds for Uttar Pradesh & Odisha and now Bihar.
