To Foster Entrepreneurship & Promote Innovation, MSME Department has released a “Fund Of Funds” Scheme With Startup Odisha as the Implementing Agency. This Scheme Is Dedicated To Focus On The Capital Investment Requirement Of Startup’s During Their Seed Stage. Looking At The Essentiality Of Venture Capital & Angel Fund For Registered Startup, The Fund Of Funds With A Target Corpus of Rs 100Crore will Be Disbursed Over 5 Years To Support 1000 Startup’s In The State.
SEBI registered category 1 and 2 investment funds/Angel funds will be selected as partner funds by startup Odisha, however the decision to invest is left to the partners. The scheme money is to be invested in selected funds with an agreement of minimum availability at 1 : 1 ratio to the state registered startups within 5 years. The scheme budget to be drawn from the treasury and shall be utilized as grants periodically. Similarly, the returns from these to be reinvested in strengthening the ecosystem.
A high powered advisory committee led by developmental commissioner and principal secretaries of various departments like MSME, Finance, Skill Development etc. as members to monitor and take decisions periodically viz. Execution of the scheme, Eligibility guidelines, selection as well as exit from partner funds. Through this Scheme, Startup’s will be getting multiple collateral benefits, investment opportunities & also the employment avenue for youths shall be broadened by aiding the Enterprises.