Rs 1,000-crore venture capital fund okayed for space sector

Aiming to enhance the private sector’s participation in the space sector, the Cabinet on Thursday approved setting up of Rs 1,000 crore venture capital fund under aegis of IN-SPACe.

As part of its 2020 space sector reforms, the Centre had established IN-SPACe to promote and oversee the private sector’s participation in space activities.

The fund is envisaged for up to five years from the actual date of start of fund operations and the indicative range of investment proposed as part of the fund will be around Rs 10 to Rs 60 crore, depending on the stage of the company, its growth and its potential impact on national space capabilities.

A company in its growth stage will be getting between Rs 10 to Rs 30 crore, while the one in late growth stage will be getting around Rs 30 to Rs 60 crore.

Based on the above investment range, the fund is expected to support approximately 40 startups. The average deployment amount could be Rs 150-250 crore per year, depending on the investment opportunities and fund requirements, sources said.