The Overseas Private Investment Corporation (OPIC), the US government's development finance institution, Friday announced the launch of a venture capital programme in India in partnership with Iron Pillar.
OPIC will typically commit between USD 5 million and USD 25 million, or up to 25 per cent of a fund's total capitalisation, and the programme will invest in later stage venture funds supporting developing economies, according to OPIC executive vice-president David Bohigian.
"Our focus will be on supporting entrepreneurs and small businesses in tech-enabled sectors including healthcare, education, financial services, agriculture, and energy services," he told reporters here.
Funds applying for OPIC support will be selected on a quarterly basis through an open and competitive process, he added.
OPIC works with the US private sector and helps US businesses gain footholds in emerging markets.
"OPIC has seen many small businesses have a big impact in emerging markets and by supporting venture capital funds focused on these markets, we'll be able to reach more of these promising young businesses," said Bohigian.
He said Iron Pillar, a venture growth investor specialising in technology businesses in India, is the first fund commitment under the firm's new venture capital initiative.
"We are delighted to be the first fund selected for OPIC's new global venture capital programme," said Sameer Nath, managing partner, Iron Pillar.
Venture capital investment in emerging markets has risen from USD 800 million invested across 127 deals in 2009, to USD 13 billion invested across 1,168 deals in 2017, according to research agency Preqin.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)