BIRAC AcE (Accelerating Entrepreneurs) Fund
The AcE Fund is an initiative by BIRAC aimed at accelerating growth of biotech start-ups and SMEs. It was launched to bridge the “valley of death” funding gap in biotechnology product development . The scheme is structured as a Fund-of-Funds model where BIRAC contributes to selected daughter funds which in turn invest in biotech companies. As a biotech MSME/start-up, your enterprise can benefit if you are seeking growth capital and have technology/product development underway.
Key Features
- Fund-of-Funds structure through daughter funds : BIRAC does not invest directly into each start-up. Instead, it selects credible AIFs (“daughter funds”) which will invest into start-ups. The application form clarifies the daughter funds must be SEBI-registered, have investment track record etc.
- Catalytic co-investment by BIRAC: up to ₹30 crore or 30 % of a daughter fund’s corpus: According to guidelines, the AcE Fund will commit a maximum of up to ₹30 crore or up to 30% of the total aggregate capital commitment amount in each daughter fund.
- Support for biotech start-ups at growth stage: The scheme’s purpose is to enable start-ups at early/ growth stage in areas like biotech, medical devices, agri/industrial biotech, etc.
- Each eligible start-up may receive up to ~₹7 crore of support via daughter fund investment: The guideline states that the assistance to each start-up will be up to INR 7 crore against the equity held by the partner fund.
- Focus on increasing private/venture capital flow into biotech sector, boosting IP & product-development: The scheme emphasises attracting more capital into the biotech domain, strengthening the innovation ecosystem and translation of research into products.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- SEBI-registered AIFs set up as Daughter Funds, which propose to invest in biotech startups and SMEs.
- These Funds must have a clear investment strategy favouring biotech domains .
- Fund managers with a track record and institutional investor commitments.
Who Cannot Apply:
- Entities that are not SEBI-registered AIFs or those not focused on biotech/innovation sectors.
- Funds that do not commit to the required “twice the BIRAC investment” into biotech startups or do not have required governance & track record.
- Startups directly — this scheme is not for direct application by biotech start-ups .
Documents Required
- Application form for AcE Fund including: Fund name, SEBI registration, fund corpus, investment strategy.
- Fund manager’s track record, experience in biotech/life-sciences domain.
- Financial and legal documents: PPM , Contribution Agreements, audited accounts , investor commitments.
- Details of investment policy in biotech: ticket size for startups, sector sub-segments, exit strategy, governance structure.
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Fund managers setting up a biotech-focused AIF seeking BIRAC AcE Fund contribution.
Option 2: Direct Government/Agency Process
- Identify and register your SEBI Category I/II AIF focusing on biotechnology innovation.
- Prepare the application: fund size, investment strategy, biotech sectors targeted, commitment from other investors, governance structure.
- Submit the application to BIRAC → evaluation by the AcE Apex Committee → contribution agreement → funds draw-down.
Option 3: Apply Through the Official Online Portal
- Applicants can also submit their application directly through the official BIRAC portal.
- The process involves completing the online form, uploading required fund documents, submitting digitally for review. After submission, BIRAC verifies the details and communicates further steps or approval.
- This option is suitable for fund managers comfortable managing the process independently online.