Sicom and SIDBI have each pumped in Rs 12 crore, while the United Western Bank and Ratnakar Bank have chipped in with Rs one crore each. Subash Dandekar, chairman of SICOM said that the fund would start screening projects within a month's time.

The Sicom Venture Capital Fund would be investing in unlisted companies and start-ups having one to three years of revenue record with potential for significant returns. In case of higher requirement of fund, they would be seeking co-investment with other funds and institutions as a part of spreading its risk. The Sicom Venture Fund would seek significant minority position preferably not exceeding 25 per cent of equity stake in investing companies. The Fund's investment may go up to 40 per cent in exceptional cases.

The fund would be looking at a disinvestment through stock market or through a strategic sale over a five year time horizon. The management of Sicom Venture Capital Fund would vest in a professional board comprising experts from IT, banking, marketing and finance. Apart from start-ups the fund would look at existing companies.