National Innovation Council

The India Inclusive Innovation Fund

June 2013

Vision• Innovation is needed to address India’s developmental

challenges– Healthcare, Nutrition, Education, Energy, Water, Livelihoods,

• Grant & Charity based funding is needed for the poorest of the poor but is not scalable or self sustaining

• We need an inclusive innovation ecosystem which harnesses the dynamism of enterprise to innovatively solve the problems of the base of the economic pyramid in a scalable, sustainable way

• IIIF will leverage a proven concept that has worked for the affluent & attract the brains in the world to apply it to solve the problems of the poor, providing investors with models financial returns coupled with measurable social returns

• It will also help create an inclusive innovation ecosystem by creating / augmenting / partnering with mentoring networks, incubators & by conducting skilling / training workshops for this purpose

Objectives• Drive inclusive growth by igniting innovative entrepreneurship

that addresses Bottom of the Pyramid needs• Mobilise capacity to identify and scale innovative solutions that will

address problems of the disadvantaged• Create an ecosystem of innovative solutions, business models and

approaches that reach beyond IPs/Patents• Balance social and financial returns, simultaneously achieving

social good and economic sustainability• Employment / livelihoods creation at the bottom of the

pyramid will be a key bias for the fund’s investments• Mentor, develop skills, build capacity : create dedicated support

networks and education programmes for socially focused entrepreneurs

• Pool innovators and entrepreneurs focused on the bottom of the pyramid: partner with incubators, entrepreneurship cells, angel networks, VC Funds, etc.

Identifying Entrepreneurs / Ventures

4

Online Offline Others

Technology Platform (IIIF) CSIR, DRDO, NINC, etc Events

Techpedia Foundations - Gates, Dell, Wipro, CSF

Conferences & Forums

Angel List Incubators (IAN, unLTD, 500 Startups, Villgro, IIM-A, RTBI, etc)

Business Networks

Honey Bee Network Angel Investors (IAN, Other Angel groups, Dasra, Ennovent, SELCO, etc)

Publications

Social Media (Facebook, LinkedIn, Twitter, Quora)

Venture Funds (Omidyar Network, Acumen, Matrix, Aavishkar, Unitus, Lok Capital, Khosla Impact Fund), SIDBI, etc.

Competitions (Mahindra Rise, Power of Ideas, Tata Social Enterprise Challenge, etc.)

Your Story, Plugged In, Head Start, VC Circle

TiE, NEN, NASE, Action for India, BYST, Stanford Biodesign, HBS, etc.

IFC, World Bank, UNIDO, FICCI - USAID Millennium Alliance

Structural / Management Aspects• SEBI registered Category I AIF – first close Rs. 500 crores, maximum Rs. 5,000 crores

• GoI investment 20%, balance from Public / Private institutions, domestic and overseas

• Fund life : 9 years extendable by up to 2 years• Target gross IRR of 12% before taxation and management charges• Trustee would be IDBI Trusteeship Services, AMC Section 25 not for

profit company• Fund would be professionally managed by successful serial

entrepreneurs and experienced fund managers, aligned with fund thesis

• Investment committee will comprise successful professionals with background of entrepreneurship, investment, domain knowledge, top management experience

• Governing Council of eminent individuals with experience across public / private sector in entrepreneurship, management, finance,investment, etc. will have oversight and ensure that investmentsare in accordance with the thesis

Status & Next Steps• Commitments of Rs. 475 crores

received (including GoI Rs. 100 crores)• Pipeline of over 300 target investments• EFC screening over• SEBI registration would be obtained

post cabinet approval• Chairman NINC to take necessary steps

for creation & operation of the Fund, in collaboration with PMO and Planning Commission

National Innovation Council

Thank You