The slow deployment isn’t for lack of interest among local venture capital firms. There aren’t very many large domestic limited partners (or LPs, industry parlance for investors in venture capital funds) readily available. That means the start-up must be at most five years old at the time of raising capital from a FFS-backed venture capital fund. A venture capital fund will typically participate in successive funding rounds in a portfolio company for a few reasons. In making sovereign capital available to local venture capital funds, the government hopes to compensate, to some extent, for the absence of local LPs.

Source: Mint February 20, 2017 18:11 UTC