 "ISBA to set up $40 mn seed fund")
The $40 million will have 50% contribution from incubators that come under ISBA and India Electronic and semiconductor association (IESA) and the rest of the funds will have contribution from HNI's based out of the US and serial entrepreneurs.
"We have to register the funds with SEBI but even before that we have received commitment from our foreign partners for the $20 million. Though we have seen a spurt in VC activity in India, there is little risk capital available at the seed funding level. With this corpus we want to address that segment," said Rajendra Jagdale, director general, Science and Technology Park and president ISBA.
On an average the fund intends to invest Rs 1 crore per startup. And will look at an exit post three years. The fund life-cycle will be for 10 years. The fund will look at taking stake of upto 30% in startups.
Jagdale also added that by inviting private investors to be part of the fund will allow them to increase their funding in startups. "Though we are given funds from DST there is limitation. The upper limit of funds from government is Rs 50 lakh. But sometimes this is not adequate for companies in hi-tech and pharma segment were the initial investment amount needs to be higher," added Jagdale.
The conference that starts on September 10, with its theme 'Powering the Start-up Enablers: Incubators, Accelerators, Innovation Clusters & Co working Spaces', has also for the first time included all the stakeholders of the startup ecosystem. "We have been calling all the incubators for this event annually, but this time around we have also included accelerators innovation clusters, coworking spaces, investors corporates and all other stakeholders that are part of the startup ecosystem to be part of this conference," added Jagdale.
ISBA is registered as a not-for-profit Society. Its main objective is: "To promote business incubation activities in the country through exchange of information, sharing of experience, and other networking assistance among Indian Business Incubators (TBIs), Science and Technology Entrepreneurs Parks (STEPs) and other related organizations engaged in the promotion of start-up enterprises. There are more than 70 members in the network across the country comprising of incubators / science parks located in IITs, IIM, NITs, etc?promoted by DST, DBT, MSME & Private organizations.