During last two years, despite umpteen rounds of discussion, it was realized that the new India Inclusive Innovation Fund (IIIF) would only invest in existing companies which were engaged in innovative products and services for serving poor people. No doubt, the poor people need to be served and the for-profit companies already in market need funds for the purpose.

The question really is whether their needs can be met through existing equity funds or commercial banks and if not, why not? Should public funds be used to crowd out the private venture/impact investment funds for the purpose? Interestingly enough, almost the entire money for the purpose has been raised through budgetary provisions and contributions by commercial banks and other public financial institutions.

http://www.dnaindia.com/analysis/column-why-should-start-ups-suffer-so-much-in-decade-of-innovation-1880125