New Delhi: In a first of its kind in India, the Indian Institute of Management (IIM) Udaipur has launched a student-managed Impact Investment Fund (IIF) focusing on investing in early-stage projects or start-ups that create a social and environmental impact on society.
The initiative seeks to support entrepreneurs who have the potential to leverage their expertise and skills to create an impact on society and the environment in a sustainable manner.
It will be supported in five goals from the United Nations Sustainable Development Goals – zero hunger, good health and well being, quality education, clean water and sanitation and affordable and clean energy.
“IIF will play an important role by bridging the gap between potential investors in social entrepreneurship and entrepreneurs by scouting the Indian market, understanding the objectives of both investors and entrepreneurs, aligning the fund’s objective of creating an impact, and awarding the fund to the entrepreneur along with the knowledge and operational support. IIF recognizes the industry of the project, the benefit of the product or service, and evaluates the impact it will have on society and the environment,” said a statement.
How will the fund work?
- It will be an ‘Evergreen Fund’, operating financially within IIMU IC as a Section 8 Company, with provision for co-investing. Fund size is estimated to be seven crores in five years. Approximately 12-17 companies will be invested in at any point in time. Individual investments, however, are capped at 15 per cent of fund size or Rs 40 lakhs.
- Working with a board of directors, and advisory committees, all fund operations, investments and exits will be managed by the students. The Founding Student Team has 18 members.
- IIF is also looking at collaborating with Global Impact Fund Collaborative, which has 11 institutes as a part of it (inclusive of IIMU).
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