SIDBI introduces Prabhaav – A Comprehensive Analysis of the Fund of Funds for Startups' Impact.

Hyderabad: The Fund of Funds for Startups (FFS), a vital element of the Startup India Action Plan initiated by Prime Minister Narendra Modi in 2016, has become a cornerstone program within India's startup ecosystem under the oversight of the Department for Promotion of Industry and Internal Trade (DPIIT). Managed by SIDBI on behalf of DPIIT, the scheme has undergone an evaluation by CRISIL, a leading analytics company in India, resulting in the unveiling of the impact assessment report named Prabhaav.

The presented by SIDBI officials to representatives from the Ministry of Finance and DPIIT, highlights the significant contributions of the FFS in fostering the growth of startups in India. It emphasizes the substantial increase in capital flow, innovation, inclusivity, and geographical expansion of startup funding. Notably, the scheme has facilitated investments in various sectors, including deep tech, agriculture, healthcare, and financial services, with a focus on supporting startups beyond Tier 1 cities and those led by women.

Furthermore, the FFS has played a pivotal role in revolutionizing the venture capital landscape in India, garnering strong support from fund managers and facilitating fundraising activities. The assessment reveals a high success rate among first-time fund managers, indicating the scheme's effectiveness in broadening the reach of venture capital funding.

Both the Department of Financial Services and DPIIT commended SIDBI for its management of the scheme and the positive outcomes achieved. SIDBI, with its extensive experience since its establishment in 1990, has been instrumental in fostering an inclusive and innovative startup ecosystem, not only through the FFS but also through other initiatives supported by its own balance sheet and in collaboration with the central and state governments.