Andhra Bank has committed to invest Rs 10 crore in the Biotechnology Venture Fund to be managed by APIDC-Venture Capital Limited.
With the investment commitment of Rs 15 crore by the state government through APIDC, the fund has accomplished its first closing of Rs 25 crore and is targeting a final closing of Rs 100 crore. This is the first biotech-focussed venture fund to be launched in India.
R Balakrishnan, the executive director of Andhra Bank, handed over the bank's commitment letter to SM Balasubrahmanyam, the chairman of APIDC- Venture Capital Limited, during the ongoing CII Partnership Summit today.
The fund is in discussions with a number institutional investors to mobilise further money.
The fund after going through over 70 proposals has made in-principle commitment to six proposals and expects to sign letters of intent with another 5 companies.
The lead investment to the tune of Rs 15 crore by the fund in these 11 companies is expected to attract a co-investment of Rs 120 crore, APIDC Venture Capital Limited said in a release.
