Budding entrepreneurs now have one more source of support, with the launch of Aaruha Technology Fund by StartupXseed, a seed-funding company, here on Thursday.
B.V. Naidu, Managing Partner, StartupXseed, said the key differentiator was that the funding comes along with strategic support, mentorship and exposure to venture capitalists (VCs), so that the start-ups can graduate to the next level.
“Around 20 like-minded people, including pioneers in IT, industry, education and others, have come together to launch this initiative as we felt there is a need for a strong and holistic system to support the start-up ecosystem that has been growing at a tremendous pace,” he said.
The fund has been launched with an initial investment of Rs.30 crore for start-ups in areas of high technology businesses including security, semiconductor and embedded devices. Six companies would be evaluated before selecting one, and there would be 15 to 18 of them, with each of them getting Rs.50 lakh to Rs.1.2 crore.
ShieldSquare, a Bengaluru-based company that works in the area of BOT prevention and Internet security, was selected as the first start-up for the programme.
StartupXseed also announced memoranda of understanding (MoUs) with leading incubators in Bengaluru set up by IIITB, Dayanand Sagar University and eHealth Technology Business Incubator in PES University.
V. Balakrishnan, Chairman, StartupXseed, said the country had a lot of money and talent but they were all locked up in different places. “We have great academicians but they are in universities. Angel funds give only money. So, our effort, the first of its kind in the country, joins all the dots.”
T.V. Mohandas Pai, Partner, StartupXseed, referred to Bengaluru, along with Hyderabad and Chennai, as part of a golden triangle and the largest innovation centre that is on its way to becoming the start-up paradise.