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Union Cabinet Approves Rs.1,000 Cr VC Fund for Space Sector Startups

By Viestories
New Update
Union Cabinet approves establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under aegis of IN-SPACe

Union Cabinet approves establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under aegis of IN-SPACe

The Fund is strategically designed to advance India’s space sector, aligning with national priorities and fostering innovation and economic growth.

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The proposed fund will encourage companies upstream, midstream, and downstream in the Indian space sector to increase employment. It helps companies scale, invest in R&D, and hire more people.

Each investment might create hundreds of direct engineering, software development, data analysis, and manufacturing employment and thousands of indirect supply chains, logistics, and professional services jobs. The fund will create jobs and train a competent workforce by creating a robust startup environment, boosting India's space market competitiveness.

The emergence of almost 250 space startups spanning the entire value chain underscores the crucial need for timely financial support to foster their growth and prevent the loss of talent to other countries.

The establishment of a government-backed fund would not only enhance investor confidence and attract private capital, but also demonstrate the government's dedication to advancing space reforms. This fund would operate as an Alternative Investment Fund under SEBI regulations, offering early-stage equity to startups and empowering them to expand in preparation for subsequent private equity investments.

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