India, June 23 -- Alternative investments funds (AIFs) have been critical in supporting the growth of the world's third-largest startup ecosystem since its beginning. However, as the Indian startup ecosystem matures, the pace at which the capital is being deployed has also received greater regulatory attention.

Erstwhile, fund managers were raising larger pools of capital while identifying investment opportunities as fast as possible. But even after registering with the SEBI, launching new fund schemes often involved lengthy procedural requirements that, as per industry participants, could lead to a delay in capital deployment.

In a market where timing can be critical, particularly for venture capital (VC) and private equity (PE) invest...