The sole objective of the fund is "investing in companies that are based in the state and are focussed on sectors such as information technology, biotechnology and other knowledge-based services which are aligned to the state's vision to transform itself into a knowledge society."
Venkatesh, CEO, Andhra Pradesh Investment Fund told newsmen that the Fund is being financed by philanthropic NRI investors who want to give back to their state and the country "which invested in them and contributed to the success levels they have attained."
He said the fund would be created in two phases. While $ 2 million would be raised by the end of current year, another $ 5 million would be raised next year in the second phase. He said the funds would be raised through 'investment club' where investors can invest amounts ranging from $25,000 to $100,000, which would go into the creation of the proposed corpus.
"The Fund is a means to help Indians' talent get a chance to demonstrate their potential and achievements on a world stage and derive the utmost financial advantage out of them. Besides funding, we will hand-hold the budding entrepreneurs from concept to commercialisation," Venkatesh added.
The Fund has set up its office in Hyderabad to receive the proposals, which will be cleared by investment review committee in the United States. Already, the Fund has raised $350,000 and received four proposals for funding.
AP Minister for Information Technology and Communications Ramreddy Damodar Reddy, who launched the Fund, said it would go a long way in helping small and medium enterprises and contribute to the state government's plans to create large- scale employment opportunities.
"The promoters and the management team of the Fund will pool together their collective expertise to help young entrepreneurs. I belong to Andhra Pradesh and I owe to the state a huge debt of gratitude for whatever I am today. My colleague Pradeep Shenoy, though not hailing from this state, has spent a significant part of his working life here. It is our endeavour to see that Andhra Pradesh remains in the forefront of all-round economic development of India as a whole," Venkatesh pointed out.
Venkatesh has promoted a couple of start-ups including Solivar Inc, a Hyderabad-based IT company offering solutions to the insurance and healthcare verticals, while Pradeep is an engineer and alumnus of IIM, Kolkata who earlier served as Global CEO of SQL Star International.
Indira, who was born and brought up in AP, is a successful entrepreneur who has seen her company grow from one person in 2000 AD to nearly 100 persons now. "We have gone through times when we needed funds, and had a timely support. We want to extend the same helping hand to others," Indira said.
