Hyderabad: The Telangana government’s proposed early stage investment vehicle T-Fund takes a backseat and is likely to materialise only after elections. Officials remain indecisive on ownership of the fund and whether it should be owned by T-Hub or any other entity. With T-Hub CEO’s resignation; the setting up of the fund will be further delayed.
T-Fund is a Rs 100 crore fund to be invested in start-ups across the state. T-Hub initially prepared the documents which were vetted by SEBI. Related approvals from SEBI were acquired. According to officials, there are operational deadlocks. If T-Hub is given the ownership, then there might be scope for preferential treatment for start-ups associated with T-Hub.
As per the State Innovation Policy, the government was supposed to expedite the launch of its early-stage investment vehicle T-Fund in collaboration with T-Hub.
T-Fund is an independent private fund where the government is a limited partner. Venture capitalists and investors will contribute to the fund.
An official from IT Department said, “When no one else was readily available, T-Hub took it up as an initiative. But the fund has to meet the interests and requirements of the State. Once the new CEO of T-Hub takes over, we will take a call on T-Fund.” It may be mentioned here that T-Hub CEO, Mr Jay Krishnan has resigned and Mr Srinivas Kollipara will be the interim CEO from September 15.
According to officials, the process for hiring a new CEO has been initiated and around 6 people have been shortlisted. As per the Innovation Policy, T-Hub Board of Directors, corporate networks and senior government officials will constitute a panel to decide the nature and amount of fund investments. The T-Fund website is up and running and is being administered by T-Hub currently.
Officials said that only after elections more concrete details would be available; however there has been some interest from investors. Meanwhile funds provided by the Central government is available for the state. Due to this access, the T-Fund was vetted and registered by SEBI.
