Venture Fund for Space Tech Startups

On 24th October, 2024, Union Minister announced a Rs. 1,000-crore venture capital fund to support space tech firms in India, aiming to foster innovation and growth within the sector.

Key Points

Fund Structure: Established under IN-SPACe, the fund will be professionally managed to invest in approximately 40 startups based on commercialization potential.
Deployment Timeline: Rs. 150 crore will be allocated in 2025-26, Rs. 250 crore annually over the next three years, and Rs. 100 crore in 2029-30.
Investment Range: Early-stage firms may receive investments between Rs. 10 crore-Rs. 30 crore, while late-stage firms may secure Rs. 30 crore-Rs. 60 crore based on growth trajectory and impact potential.
Objective: The fund aims to curb the trend of Indian space startups relocating abroad by providing risk capital that traditional lenders avoid.
Economic Impact: Part of India’s strategy to expand the domestic space economy from $8.4 billion to $44 billion by 2033, the fund is expected to stimulate further private equity investments in the sector.