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Thursday, December 7, 2023

Billionaire Venture Incubation launches new fund for startups

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Billionaire Venture Incubation established an incubation fund for businesses via a Special Purpose Vehicle (SPV). Initially, the SPV set aside around USD 200 million to provide finance to approximately 150+ companies in Tamil Nadu, Karnataka, and Maharashtra.

With the goal of empowering businesses in the country, Chennai-based Billionaire Venture Incubation developed an incubation fund for companies via a Special Purpose Vehicle (SPV).

According to Dr. Subhash Sukumar, Board Member of Billionaire Venture (BV) Incubation, “The newly created SPV would first invest around USD 200 million in approximately 150+ businesses in Tamil Nadu, Karnataka, and Maharashtra. There are also plans to extend to the northern section of the country at a later date.”

Aside from producing thousands of employment with this initial project, the SPV will help many young entrepreneurs realise their ambition of promoting more similar businesses in the country and creating millions of jobs in the years to come.

Sukumar stated: “The SPV will help to sustain knowledge in our country and contribute to GDP as more entrepreneurs, especially IIT alumni, are willing to encourage startups.

The support provided by the Centre and State Governments in the form of investment subsidies will help attract new entrants.”

The SPV will immediately focus on particular verticals such as Fintech, Edutech, and other vital sectors, detailing the manner of operations of the 16 designated verticals. In addition to financing, the SPV would supply technology and education linked to new entrants’ businesses.

Sukumar continued, “The finance method has been devised to protect both the SPV and the startup. The dividend would be waived for the first two years by the SPV. However, over the two-year term, the startups will be closely monitored. Even if activities are disrupted, the SPV will take over and transfer operations to other successful startups, while offering profit sharing throughout the remaining duration. This early-stage protection will entice additional entrepreneurs.”

There are also plans to offer other verticals to broaden the operations of Billionaire Venture’s new project. Billionaire Venture Incubation works with early-stage firms and brings together entrepreneurs and investors to establish ground-breaking enterprises by providing the proper balance of financing, intelligence, and global network.

DBS Bank India would be a chosen banking partner to supply banking solutions to the startups under this initiative, owing to their considerable expertise supporting businesses across Asia.

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