Speaking to Deccan Herald, sources said, the new fund will be styled Karnataka Venture Capital Fund (KARVEN Fund). An application has been made before Securities & Exchange Board of India for formal clearance and registration, which, was expected by month-end.
The objective, they said, was to invest in new and upcoming SME units specially catering to niche areas of clean energy, aerospace engineering, automobile components, new products and applications, which are some of high growth potential sectors identified by the State government for prospective entrepreneurs in order woo investments.
The fund, they said, was committed for investment in SMEs & startups units predominantly in Karnataka. The corpus is subscribed by Karnataka State Industrial Investment & Development Corporation Limited, Karnataka State Financial Corporation, Karnataka Small Scale Industries Development Corporation, equally.
Funding will be for SMEs and enterpreneurial projects which show promise of manufacturing potential and need VC funding to kick start the venture and grow into large size entity over a period of time.
