Centre aims to invest ₹2,200 cr. in electronic technology start-ups
The Centre is targeting an investment of about ₹2,200 crore by 2019 in start-ups working on new technologies in the electronic sector under the Electronics Development Fund (EDF). The EDF would put in 10% of the capital in ‘daughter funds’ and the rest would be invested by venture capitalists. Hence, a targeted investment of ₹2,200 crore by the government will help mobilise ₹22,000 crore for the ‘daughter funds,’ which will then invest primarily in start-ups.
The fund is an attempt to develop the electronics system design and manufacturing sector in the country to achieve “net zero imports” by 2020.
What is EDF?
The EDF is a ‘fund of funds’ that works with venture capitalists to create funds, known as ‘daughter funds,’ which provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and IT.