In a strategic move to fortify Bihar’s startup landscape, the Bihar Startup Fund Trust, operating under the Department of Industries, Government of Bihar, has inked a collaboration with the Small Industries Development Bank of India (SIDBI). This partnership is geared towards administering the Bihar Startup Scale-up Financing Fund (BSSFF), amounting to Rs 50 Crore, signaling a significant stride in propelling Bihar into a dynamic startup nucleus.
The joint endeavor aims to cultivate a supportive milieu for startups in Bihar, with a keen emphasis on fostering innovation to tackle intricate challenges confronting the Indian economy and society. At the forefront of executing the Bihar Startup Policy, the Bihar Start-Up Fund Trust (BSFT), established as a nodal agency by the Government of Bihar, is pivotal in nurturing entrepreneurship and innovation by fostering an ecosystem conducive to startup growth within the state.
Aligned with the policy’s objectives, the state government has endowed the Bihar Startup Fund Trust with an initial Corpus of Rs 500 crore. From this allocation, the Bihar Startup Scale-up Financing Fund (BSSFF) has been instituted with an initial corpus of Rs 50 crore, earmarked to provide scale-up funding assistance to startups. Managed by SIDBI, the BSSFF adopts a fund-of-funds model, directing its resources not directly into startup enterprises but into SEBI-registered Alternative Investment Funds (AIFs), which in turn channel investments into startups.
This approach is designed to amplify funding support to startups, catalyzing their growth and development, as per official statements. Established in 1990, SIDBI has been instrumental in shaping India’s startup ecosystem, particularly during a time when the risk capital and venture capital landscape were nascent. Over the past three decades, the institution has spearheaded various initiatives to bolster startups, including the establishment of schemes and collaborations with the Government of India and state governments to advance their startup agendas through Fund of Funds initiatives.
Currently overseeing funds dedicated to Agro and Rural enterprises and state-specific funds for Uttar Pradesh, Odisha, and now Bihar, SIDBI continues to play a pivotal role in fostering entrepreneurial growth across the country.