StartUps SIDBI Funds 1000 Crores INR To Several Start Up By Fabnewz Team 3 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Small Industrial Developmental Bank of India has sanctioned more than 1000 crores INR to various start ups through the government financed India Aspiration Fund. It will help around 30 new ventures to start there business projects. The respective sanctioned amount was signed by the executive committee of SIDBI. Apart from this, SIDBI signed a memorandum with Life Insurance Company of India where it will contribute atleast 10% of funds as co-investors. Also, there are other companies who have come forward to fund such as IvyCap Ventures, Blume Ventures and Exfinity Venture Partners. The investment will be 15% to 20% of total amount by the Venture Capitals. According to SIDBI Chairman, Kshatrapati Shivaji said that, We got many proposals from funds, out of which 35 proposals were recommended by the VCIC to our executive committee. We have already approved 30 of the proposals worth Rs 1,000 crore. These funds will be invested to startup units. Primarily, our aim is to nudge them to make investments in the seed stage because that is when they need the maximum support. India Aspiration Fund was launched in August 2015 having a sole motto to provide fund to small and micro industries as well as start ups so as to generate employment. Inspired by it Prime Minister Narendra Modi announced to sanction additional 10,000 crore INR to start ups. Out of the total amount 250 crores INR will be provided annually. Along with that other extra packages will also be provided to the start ups for boosting. SIDBI Chairman , Shivaji, added further that,” The new fund announced in January means that funding of startups will not be an issue. If we need more money, the government is willing to support. This initiative is very critical for India because more than 1 million jobs have to be created every month. We cannot generate employment only through government. We have to facilitate the private sector and provide a conducive environment for their growth” ALSO READ: SoftCube Raises Fund Although the funding would take time of 12 to 18 months as it is long term benefit. So, waiting for such huge amount to be sanctioned need patience. The project of the start ups are based on long project which is 10 to 12 years. Venture capitalists will decide the right start ups and get on the final agreement regarding financial closures. SIDBI, has also shown involvement in SAARC Development Fund by signing a petition to provide advisory and consultancy to small scale enterprises and its entrepreneurs.