A state venture capital fund that co-invests in private venture capital funds could create thousands of jobs SA COULD create thousands of jobs by boosting investment in high-growth startups through a state venture capital fund that co-invests in private venture capital funds.From the US to Israel and several emerging economies, governments have been involved in setting up a fund-of-funds to invest in startup companies that show potential.Last month India became the latest emerging economy to enter this market with the launch of a 20-billion rupee ($301m) fund administered by the Small Industries Development Bank of India.The Chinese government announced earlier this month that part of a new 60-billion yuan ($9.40bn) fund for small businesses would be used to back startups.The fund-of-funds model is based on the success of Israel’s Yozma initiative in the 1990s in stimulating a venture capital industry in the country. It involves a government either matching the investments private v...
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