AIFs seek specific funds from govt for sunrise, deep-tech startups

Update: 2025-01-12 18:32 GMT

New Delhi: Alternate investment funds (AIFs) have sought from the government specific funds for investments in new-age, sunrise and deep-tech startups with a view to promote innovation in the country, an official said.

They have also urged the government to announce a fresh round of funds under the Fund of Funds for Startups (FFS) scheme.

These demands were raised during a meeting between AIFs and the officials of the DPIIT here last week. The department held discussions with AIFs on ways to promote funding for startups in the country, the official said.

“In the meeting AIFs demanded more funds under FFS. They demanded an increase in the duration of FFS from the existing 12 years,” the official added.

At present FFS is sector agnostic. The AIFs have suggested specific funds for the sunrise and new-age sectors.

Issues like capital mobilisation and promoting funding for startups in smaller cities were also discussed during the meeting. The FFS was approved and established in 2016, with a corpus of Rs 10,000 crore, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation, to provide the much-needed boost and enable access to domestic capital.

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