Chennai (Tamil Nadu) [India], September 17 (ANI/NewsVoir): With a focus to empower startups in the country Chennai-based Billionaire Venture Incubation through a Special Purpose Vehicle (SPV) launched an incubation fund for startups.
Dr Subhash Sukumar, Board Member, Billionaire Venture (BV) Incubation said, "The newly formed SPV will earmark about USD 200 million to extend capital to about 150+ startups in Tamil Nadu, Karnataka and Maharashtra initially. Plans are also underway to expand to northern part of the country at a later date."
Besides creating thousands of jobs through this initial initiative, the SPV will fulfil the dream of many young entrepreneurs to promote more such startups in the country and create millions of jobs in the years to come.
Sukumar said, "The SPV will facilitate the knowledge sustenance within our country and additional contribution to GDP as more entrepreneurs including IIT graduates are eager to promote startups. The encouragement given by both the Centre and State Governments in the form of subsidy on investment will also encourage new entrants."
Detailing the mode of operations of the 16 verticals identified, the SPV will immediately focus on certain verticals such as Fintech, Edutech and other critical areas. Besides extending capital, the SPV would provide technology and education related to the business of new entrants.
Sukumar added, "The system of funding has been designed in such a way to safeguard the SPV as well as startups. The SPV would waive dividend for the first two years. But will monitor the functioning of the concerned startups during the two-year period. Even if there is disruption in functioning, the SPV will take over and transfer the operations to other successful startups, though it will offer profit sharing during the remaining period. This protection in the initial period will attract more startups."
Plans are also underway to introduce more verticals for widening the operations of the new initiative of Billionaire Venture.
Billionaire Venture Incubation is engaged in partnering with early-stage startups and bringing entrepreneurs and investors together to build ground breaking businesses and offer the right combination of investment, intelligence and global network.
Given their extensive experience empowering businesses across Asia, DBS Bank India will be a preferred banking partner to offer banking solutions to the startups under this programme.
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