Business Development and Micro Venture Innovation Fund
Founded in 2003 by National Innovation Foundations India & Honey Bee Network
The Business Development and Micro Venture Innovation Fund extends financial support to grassroots innovators under a single signature on a simple agreement of understanding, without any collateral or a guarantor.
Too often, grassroots innovators and entrepreneurs turn away from funds because of the bureaucratic nature of the funding process. Yet, grassroots innovations offer a huge business potential, primarily because these solutions originate from people having a first-hand experience of all the problems involved. This need-based, cost-effective and sustainable solution-centric approach acts as a key differentiator and increases the probability of their acceptance in the market, not only within the country but also in the global markets. If financing is provided at an early stage to the innovator, time to market the given product could be considerably reduced.
Solution and innovation
NIF is committed to making these innovative products available to the masses through a market mechanism or otherwise. The basic goal of BD department at NIF is to build a value chain around these innovations which could facilitate their transition into self-supporting sustainable enterprises. NIF recognises the significance of financing, particularly its hassle-free availability in the early stages of an entrepreneurial journey. Providing financing at an early stage to the innovator is achieved through MVIF, a dedicated risk fund, established by NIF and supported by Small Industries Development Bank of India (SIDBI). The concept of MVIF is a micro-venture capital fund for small innovations, to be initiated by SIDBI in cooperation with NIF, to facilitate the transition of innovations into enterprises.
MVIF is unique as it is the first and only-of-its-kind micro-venture risk fund in the world, which extends financial support to grassroots innovators under a single signature on a simple agreement of understanding, without any collateral or a guarantor. Unlike microfinance or conventional venture funds, MVIF invests in risk areas with a probability of high failure, investing in those technologies and products for which either market does not exist or may be very limited. Apart from the financial returns, one of the key criteria for selection of a technology for MVIF support is social return or social value created for the benefit of society at large.
The first phase of this fund was launched in 2003 and 193 projects by various grassroots innovators across districts and states benefitted from it with more than 75 per cent recovery. It proves that the returns are positive because the grassroots innovators, scouted and mentored by the Honey Bee Network (HBN), are ready to take the risk. As of 31st January, 2017 sixteen innovations have been supported under MVIF phase 2 and total sanctioned amount is Rs 90,60,000 and total disbursed amount is Rs. 60,20,000. The second phase was launched on January 15, 2016 and the fund was provided to innovators and entrepreneurs for technology commercialisation. Innovative technologies are incubated and launched in the market with support of this fund.
For more information about the larger programme go to http://www.sristi.org/cms/