A Venture Capital (VC) Fund is a specialized form of private equity financing that invests in early-stage startups with high growth potential.
About VC Fund for Space sector:
- The proposed fund will support startups across the entire space supply chain—upstream, midstream, and downstream.
- Financial structure: It will operate over five years, deploying ₹150-250 crore annually.
- Investment per startup: Range from ₹10-60 crore.
- Target: Support approximately 40 startups
- The Funds aims to strategically position India as one of the leading space economies by:
- Capital infusion: To create a multiplier effect by attracting additional funding for later-stage development of the Start-up
- Accelerate private space industry’s growth: To meet the goal of a five-fold expansion of the Indian space economy in next 10 years.
- Drive advancements: In space technology and strengthening India’s leadership through private sector participation.
- Benefits:
- Retention of space companies domiciled within India
- Generating jobs in engineering, software development, data analysis, manufacturing, etc
- Creating a vibrant innovation ecosystem and boost global competitiveness.
- India’s Space sector: India (ranks 5th) constitutes 2-3% of the global space economy. It’s currently valued at $8.4 billion, with a target to reach $44 billion by 2033).
About Indian National Space Promotion and Authorisation Centre (IN-SPACe) (Established: 2020)
Initiatives by Private sector in Indian Space sector: India’s first private launch vehicle, Vikram-1 developed by Skyroot Aerospace. |