T-Fund to happen only after elections

■ T-Fund is a `100 crore fund to be invested in start-ups across the state. ■ With T-Hub CEO’s resignation, the setting up of the fund will be further delayed.

The Telangana government’s proposed earlystage 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 THub or any other entity. With T-Hub CEO’s resignation; the setting up of the fund will be further delayed.

T-Fund is a `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 THub 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 TFund was vetted and registered by SEBI.