The Madhya Pradesh government has recently established a new venture fund called the Madhya Pradesh Venture Finance Limited (MPVFL). The main objective of the MPVFL Fund is to manage the funds of the Madhya Pradesh MSME Fund Trust in an appropriate manner, so that they can be used in the most beneficial way. The SEBI Certification to set up the venture fund was received by MPVFL Fund on 4th April, 2017.
The fund has been recognized under the Madhya Pradesh MSME Fund Trust, with an aim to introduce an SME Innovation Fund.
The SME Innovation Fund is the first fund that has been raised under this trust. The funding will be raised from both the State Governments as well as the multilateral agencies such as financial institutions, banks, corporate etc.
The SME Innovation Fund has a corpus of $15.4Mn (INR 100 Cr) in total with a green shoe option of $7.74 Mn (INR 50 Cr).
Significant features of the MPVFL Fund are as follows:
The tenure of the fund is nine years. Although, there is an option for liquidation after seven years.
Its major objective is to invest in State SMEs.
Taking into consideration the benefit of the State, the Fund is also interested in investing in some sustainable and innovative startups and ventures.
MPVFL is giving its support to the sustainable and scalable startups and SME ventures through equity funding, which was not easily available in Madhya Pradesh until now. An effort has been made to provide a huge platform to all the stakeholders who include advisors, mentors, investee companies etc. in the State to encourage startup entrepreneurs.
The Government of Madhya Pradesh and Chief Minister Shivraj Singh Chouhan have shown immense support to bring these efforts in effect so that a unique culture of innovation and entrepreneurship can be brought in Madhya Pradesh.
Madhya Pradesh Startup Ecosystem on the wheels of success!
In the past few years, Madhya Pradesh has developed a lot in the field of entrepreneurship and startup ecosystem. Few names such as WittyFeed, Bharat Calling, Appointy have given this state huge recognition.
MP Angel Network is an organization that provides the essential resources to the startups. $38.73K (INR 25,000) is given to the startups at an initial stage without any equity, thus, making it easy for them to take their ideas to a new level. No interest rate is charged on this amount.
Many other organizations such as the Startup Ignition, SEC, Indore Startup Community, Indore Entrepreneurs Community etc. are taking the State’s startup ecosystem to a higher level.
Madhya Pradesh became the first state to have an entrepreneurship development centre in January 2017. Also, the Government of the state revised the state startup policy in October 2016.
The new venture fund MPVFL will enhance the efforts of the Government in promoting the startups in Madhya Pradesh.