SIDBI Venture Capital Limited

Pick the right fund first

• Space company: write to the Antariksh Venture Capital Fund. It is for Indian space companies at technology readiness level 4 and above.
• Based in Assam or Tripura: the state funds invest only in companies based in that state.
• Manufacturing or services start-up, any region: the Atmanirbhar Start-up Venture Fund is the sector-agnostic route.
• Moving into exports or scaling as an exporter: read the Ubharte Sitaare Fund page.

What to send

• Email the fund inbox listed on that fund's page, not only the general inbox.
• Send the executive summary of your business plan with the management team profile, historical and future financials, and industry information.
• Use the business plan format SVCL publishes. Its guidance says to cover the product or service, the customers and market, your edge or IP, what the funds are needed for, the goals you have set, the team, and a realistic execution plan.

What to expect

• SVCL reviews the plan first, then does due diligence that includes a visit to your site and reference checks.
• An Investment Committee reviews the proposal and the promoters present to it.
• SVCL says a full cycle usually takes between 8 - 12 weeks.
• Expect a board seat and standard venture capital rights, and an exit in 3 - 5 years.
• Do not expect a debt product: SVCL describes its funds as equity and equity-type investors in unlisted companies.

SIDBI Venture Capital Limited (SVCL) is an investment management company based in Mumbai. It was incorporated in 1999 and is a wholly owned subsidiary of the Small Industries Development Bank of India (SIDBI), the apex financial institution for the MSME sector. SVCL does not invest from one pool. It manages a series of SEBI-registered alternative investment funds, each with its own theme, sector or geography, and a founder has to find the fund that fits before writing in.

Funds you can approach today

The site lists five active funds. The Atmanirbhar Start-up Venture Fund is a Category I venture capital fund registered with SEBI in August 2022. It backs scalable and sustainable start-ups and emerging or early stage ventures in manufacturing and services. The Assam Start-up Venture Capital Fund and the Tripura Start-up Venture Capital Fund are Category I funds registered in the same month. They invest in start-ups and early and growth stage MSMEs based in their own state. The Antariksh Venture Capital Fund is a Category II fund for Indian space companies at technology readiness level 4 and above. Its key investor is IN-SPACe, under the Department of Space. The Ubharte Sitaare Fund was registered in July 2021 and is co-sponsored by SIDBI and the Export Import Bank of India. It looks at manufacturing and service ventures that want to enter foreign markets, and at mid-sized exporters that want to scale.

SVCL has managed older funds as well, including the National Venture Fund for Software and IT Industry, whose portfolio included BillDesk and Manthan Software, now Algonomy. Those funds appear under past funds on the site.

What SVCL looks for

Across funds, the site asks for a strong, committed management team, high entrepreneurial drive, a scalable business that is not highly cyclical, a sustainable competitive advantage, and a clear exit plan. SVCL says it invests in unlisted companies, preferably MSMEs, and that it focuses on all stages of investment. It expects a company to be able to scale within 3 - 5 years of investment so that an exit through an IPO, strategic sale or merger is possible. Investment is by way of equity and equity type instruments, usually privately negotiated equity or convertible instruments, and the Ubharte Sitaare Fund also names debt instruments.

SVCL says it does not take a majority stake, that it insists on a board seat, and that it co-invests with other venture funds. After investing it offers networking and management support, and it helps investee companies attract later rounds from other investors.

How to reach SVCL

SVCL says a company should approach it by reading the active fund pages, preferably sending a business plan in the format on the website, and emailing the executive summary to the email id of the fund it fits. The summary should cover the management team, historical and future financials and industry information. After a first review of the plan, SVCL decides how to continue. Proposals go through scrutiny of the plan, due diligence including a visit to your facilities, reference checks, and an Investment Committee review where the promoters present. SVCL says the full cycle usually takes between 8 - 12 weeks, though it depends on how fast information is provided. The Antariksh and Ubharte Sitaare fund pages also carry a preliminary application form.

Each fund has its own contact inbox on the site, and there is a general inbox and a phone line for the Mumbai office at Bandra Kurla Complex. The Assam fund also lists a Guwahati contact address. The site does not publish a general call for applications or deadlines, so treat each fund page as the source and write to the fund inbox that matches your sector or state.