PATNA:
Bihar Start-up Fund Trust, Department of Industries, Government of Bihar and SIDBI entered an MOU today in Patna to administer the `50 Crore Bihar Startup Scale-up Financing Fund (BSSFF). Department of Industries, Government of Bihar, Pankaj Dixit, Director Industries and Arijit Dutt, General Manager, representing SIDBI formally signed the agreement. This strategic initiative is aimed at transforming the state into a startup hub, creating a conducive environment for startups to flourish economically while focussing on innovation to solve complex problems of Indian economy and society.
Bihar Start-Up Fund Trust (“BSFT”) is a nodal agency constituted by Department of Industries, Government of Bihar for implementation of Bihar Start-Up Policy of the Government of Bihar. The Policy aims to foster entrepreneurship and promote innovation by creating an ecosystem that is conducive for the growth of start-ups in the state. Under the Policy, the Government of Bihar has set-up Bihar Start-Up Fund Trust with an initial Corpus of 500 Crores. Out of this fund, Bihar Startup Scale-up Financing Fund (BSSFF) has been established with an initial corpus of50 Crores for scale-up funding support to startups. The Fund, to be managed by SIDBI, shall be in the form of a Fund of Funds. In this model, the fund shall not invest directly into start- up companies, instead it shall contribute to the corpus of SEBI registered Alternative Investment Funds, which in turn shall invest in startups.
Since, its formation in 1990, when the risk capital and VC ecosystem for innovative enterprises and startups was nearly non-existent in the country, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative, and inclusive approach. Over the last 3 decades, SIDBI has taken several pioneering steps to support building up of startup ecosystem including support out of its own balance sheet. SIDBI supported setting up of several schemes on its own before emerging as a key partner of the Government of India and several State Governments for managing their vision in Startup space through Fund of Funds interventions. Apart from FFS, it also manages ASPIRE Fund of Funds of Ministry of MSME with focus on Agro and Rural enterprises, and state focussed Fund of Funds for Uttar Pradesh & Odisha and now Bihar.
