If private equity and venture capital firms are looking to fund startups, the nation’s second largest lender by assets, ICICI Bank, has gone a step ahead by tying up with 22 educational institutions to fund ideas of students.
But this comes with a catch: the bank will own the intellectual property rights (IPR) of the startup for three years.
The bank has partnered with top-tier institutes including IIT-Delhi, Birla Institute of Technology-
Technology-Hyderabad and PEC Chandigarh in the past two years.
More than 3,000 students have participated in its programmes with 650 ideas and it has backed 20 startup concepts, with funds ranging from Rs 5 lakh to Rs 25 lakh.
“During the initial period, the startups enjoy the exclusive rights to conduct business with ICICI Bank,” said an ICICI BankBSE -1.95 % spokesperson. “This ensures a steady flow of business to them. The bank provides a no objection certificate, which per ..
