The main aim of the Tex Venture Fund is to help in the development of the power loom and textile-related sectors. Investments towards the fund are made by the Small Industries Development Bank of India (SIDBI) Venture Capital Fund Ltd. (SVCL) on behalf of the Ministry of Textiles. Investments are made in the form of equities to help start an enterprise or for expansion.
Highlights & Benefits of the Tex Venture Fund
The main highlights and benefits of the scheme are mentioned below:
- The Tex Venture Fund will look to invest in companies that are emerging in the textile industry. Invest is also provided to new fields in the textile industry.
- SVCL will invest up to 50% of the total cost of the project with a maximum of Rs.3 crore.
- SVCL usually invests in innovative power loom Micro, Small, and Medium Enterprise (MSME) companies.
- Investments are made in the form of equities that can later be converted into equities of the Textile, Micro, and Small Enterprises.
For more details, you can visit http://www.sidbiventure.co.in/index.html.
Tex Venture Fund Eligibility
Investments are made by the SVCL in business models that are innovative and have a good management team. The business must also be related to the power loom and textile sector.
Preference will be given to projects that have new technologies and products that give a better value to customers.
Tex Venture Fund Process
The process that is followed by SVCL to select the business they invest is mentioned below:
- Committed Team: SVCL looks for teams that have a proven track record. Preference is also given to teams that are committed and energetic.
- High Potential: SVCL looks to invest in businesses that have the potential for high growth rates. Preference is also given to businesses that are relatively insulated from any downturn in the academy.
- Sustainable Competitive Advantage: Preference is given to business models that have a sustainable competitive advantage.
- Companies with a Clear Exit Plan: Investment is provided in business models that have a clear exit strategy within a reasonable amount of time. This can help in creating and realising the value of the investment.