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India: Government Plans Rs 1,000 Cr Fund for Startups in Priority Areas

The Indian government proposes to introduce a slew of reforms and
another fund to boost startups that are focused on priority areas such as
rural healthcare, water and waste management, clean energy solutions,
cyber security and drones. The Department for Promotion of Industry
and Internal Trade (DPIIT) plans to set up an India Startup Fund with an
initial amount of Rs 1,000 crore($150 million). The government wants to
offer seed funds for high-tech, cutting edge startups. The proposal is to
provide seed funds to 5,000 startups in priority areas. The dedicated fund,
proposed in the department's 100-day Action Plan, is separate from the
Fund of Funds for Startups (FFS), which was set up in 2016 under the
Small Industries Development Bank of India. To boost startups, DPIIT
has recommended regulatory changes aimed at promoting venture
capital and angel investments, especially from Indian investors. Besides,
the government has pitched to treat outsourced R&D efforts on par with
in-house R&D for incentivization purposes and easier movement of
researchers between academia, public research institutions, entrepreneurship and industry.

Australia: Government Commits $100m to SME Fund

The Australian federal government has committed
$100 million over five years for a fund providing
"patient capital" to Australian small and medium
businesses. The government first announced plans for
the Australian Business Growth Fund late last year, but
has now decided to stump up Commonwealth funding
for the first five years of its existence. It hopes that
banks and superannuation funds will get on board
and contribute to the fund, helping it to grow to $1
billion over the next five years, with between 30 and 50
businesses with annual turnover of between $20 million
and $50 million receiving funding each year.
The fund will support existing small and medium
businesses to expand by providing them with equity
without forcing them to turn to further debt or giving
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away control of some of the company. It is being
modeled on a similar fund in the UK that has focused
on emerging, innovative sectors. The fund will be providing "patient capital", Mr Morrison said, with no focus on a quick return.
The Australian Business Growth Fund will be regulated by APRA and be administered by an independent board and chair, as
appointed by its shareholders.

Chief Editor: Gao Jian
Executive Editor: Shao Hong
Editor: Su Qing
website: www.g20e.tsinghua.edu.cn/EN
E-mail: g20erc@sem.tsinghua.edu.cn
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Address: Room 1003, Building C, Technology Building Tuspark, Beijing, China 100084 for more information.

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