To enhance the startup ecosystem in Bihar, the Bihar Startup Fund Trust, operating under the Department of Industries, Government of Bihar, has entered into an agreement with the Small Industries Development Bank of India (SIDBI). This collaboration is aimed at overseeing the Bihar Startup Scale-up Financing Fund (BSSFF), a Rs 50 Crore initiative, representing a significant stride towards positioning Bihar as a dynamic hub for startups.
The partnership endeavors to cultivate a conducive environment for startups in Bihar, with a focus on fostering innovation to tackle the intricate challenges confronting the Indian economy and society.
The Bihar Startup Fund Trust (BSFT), acting as the nodal agency established by the Department of Industries, Government of Bihar, is leading the implementation of the Bihar Startup Policy. This policy is crafted to nurture entrepreneurship and innovation by fostering an ecosystem conducive to startup growth within the state.
Under this policy, the state government has instituted the Bihar Startup Fund Trust with an initial Corpus of Rs 500 crore. Out of this allocation, the Bihar Startup Scale-up Financing Fund (BSSFF) has been created with an initial corpus of Rs 50 crore, dedicated to providing scale-up funding support to startups.
Managed by SIDBI, the BSSFF operates on a fund-of-funds model, wherein it does not directly invest in startup companies. Instead, it contributes to the corpus of SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in startups. This approach is devised to amplify funding support to startups, facilitating their expansion and progress.
Established in 1990, SIDBI has been instrumental in shaping the startup ecosystem in India, particularly during a time when the risk capital and venture capital landscape were nascent. Over the past three decades, the organization has introduced numerous groundbreaking initiatives to bolster startups, including the establishment of various schemes and partnerships with the Government of India and state governments to oversee their startup initiatives through Fund of Funds interventions.
SIDBI currently manages funds focused on Agro and Rural enterprises, along with state-centric funds for Uttar Pradesh, Odisha, and now Bihar.
