Billionaire Venture Incubation Launches a Special Purpose Vehicle for Startup Funding

Chennai, India – Billionaire Venture Incubation through a Special Purpose Vehicle (SPV) launched an incubation fund for startups with the goal of empowering startups in the country. “The newly formed SPV will earmark about US$200 million to extend capital to about 150+ startups in Tamil Nadu, Karnataka, and Maharashtra initially,” said Dr Subhash Sukumar, Board Member, Billionaire Venture (BV) Incubation. “Plans are also underway to expand to the northern part of the country at a later date.”

Aside from creating thousands of jobs with this initial initiative, the SPV will help many young entrepreneurs realize their dream of promoting more such startups in the country and creating millions of jobs in the years to come. The SPV will immediately focus on certain verticals such as Fintech, Edutech, and other critical areas, detailing the modes of operation of the 16 identified verticals. In addition to capital, the SPV would provide technology and education related to new entrants’ businesses.

Billionaire Venture Incubation works with early-stage startups and brings together entrepreneurs and investors to build ground-breaking businesses by providing the right combination of investment, intelligence, and global network. DBS Bank India will be a preferred banking partner to offer banking solutions to the startups under this program, owing to their extensive experience empowering businesses across Asia.

According to Sukumar, “The SPV will facilitate the knowledge sustenance within our country and additional contributions to GDP as more entrepreneurs, including IIT graduates, are eager to promote startups. The encouragement given by both the Centre and State Governments in the form of subsidy on investment will also encourage new entrants.”

He further added, “The system of funding has been designed in such a way to safeguard the SPV as well as startups. The SPV would waive dividends for the first two years. But will monitor the functioning of the concerned startups during the two-year period. Even if there is disruption in functioning, the SPV will take over and transfer the operations to other successful startups, though it will offer profit sharing during the remaining period. This protection in the initial period will attract more startups.”

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