Software Technology Parks of India (STPI), which is under Ministry of Electronics and Information Technology (MeitY), will be launching a Venture Capital fund to support startups & entrepreneurs from the tier II and III cities to launch new technology products, said a recent report by Business Standard.
STPI is planning to rope in a financial institution/fund manager to create a venture fund of Rs 120 crore for investing and managing seed funds in startups under Next Generation Incubation Scheme(NGIS). Under this scheme, support around 300 start-ups for the next three years will be provided by offering Rs 25 lakh risk capital and Rs 10,000 internship per startup.
Omkar Rai, Director General, of STPI said that one of the prime focus of STPI is to disperse the industry to Tier-II and III cities and to develop & nurture the eco-system for supporting startups & MSMEs.
To recall, in August Minister for Electronics and Information Technology Shri Ravi Shankar Prasad had launched “Chunauti”-- Next Generation Startup Challenge Contest to further boost startups and software products with special focus on Tier-II towns of India. The government has earmarked a budget of Rs. 95.03 Crore over a period of three years for this programme. It aims to identify around 300 startups working in identified areas and provide them seed fund of upto Rs. 25 Lakh and other facilities.
In July, STPI has launched Apiary, a Centre of Excellence (CoE) in blockchain technology at STPI Incubation Centre, Gurugram.
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