VENTURE FUND

Fund of Funds

MSMEs have been largely dependent on the promoters’ resources, borrowings from friends and relatives and secured loans from banks/ financial institutions for meeting their financial requirements. Financing of MSMEs, particularly knowledge-based enterprises has some issues as these industries do not create tangible assets. The conventional method of raising finance by MSMEs continues to be debt finance, which has its own inherent limitations like gearing ratio norm, asset coverage, etc.  To facilitate the flow of equity capital to this sector, the stake holders in the echo system have taken up several measures.

SIDBI has played a critical role in developing the MSME venture eco- system in the country. SIDBI has so far contributed to the corpus of 88 venture capital funds which has catalyzed investment of more than Rs.5600 Crore to more than 472 MSMEs.