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Telangana govt to set up Rs 2,000-crore master fund

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Press Trust of India Hyderabad
Last Updated : Jul 25 2017 | 10:50 PM IST
The Telangana government will set up a master fund to invest in sector-specific and general venture capital funds with an initial target of Rs 2,000 crore, according to the guidelines issued for "Innovation Policy" today.
"Separately, the government will also expedite the launch of its early-stage investing vehicle T-Fund (Telangana Innovation Fund), which is being launched in concert with leading global investors, in collaboration with T-Hub.
"A fund, that will function as a master fund and invest in sector-specific and general venture capital funds, shall be set up with an initial target of Rs 2,000 crore," said the policy document.
Besides, there will also be a T-SEED fund with Rs 250 crore aimed at encouraging innovators who need early stage funding to work on their research discoveries and college project ideas.
The master fund will be managed by a professional fund manager who will be sourced from the market and be responsible for raising additional fund money by engaging with financial institutions, venture capital and private equity firms, and High Net-worth Individuals (HNIs), it added.
"Additionally, in a first-of-its-kind initiative, a 'Phoenix fund' will also be launched in collaboration with the private sector. The aim of the fund will be to identify and attract entrepreneurs who have attempted at least one venture previously (and have met with some degree of success and derived learnt key learnings)," the document said.
As part of the policy, first of its kind Chief Innovation Officer (CInnO) of Telangana will be appointed to work across departments and with industry, to incubate, conceptualise and evangelise innovative ideas, it said.
The CInnO will also work closely with T-Fund, and ensure that key ideas with mass impact, that are not immediately fundable from T-Hub perspective, are not left behind completely.
The T-Hub Phase 2, a 3,00,000 sq ft facility that will house 900 startups, shall be completed within the next five years, the policy said.

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First Published: Jul 25 2017 | 10:50 PM IST

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