IFCI Venture was set-up in 1975 as Risk Capital Foundation (RCF), a society solely sponsored by IFCI and registered under the Societies Registration Act 1860, having its Registered Office at 70 Janpath (2nd Floor), New Delhi, with the principal object of providing financial assistance on soft terms for promoters risk capital and to encourage new entrepreneurs particularly technologists and professionals to start medium and small scale industries. The funds of RCF have been provided for, by IFCI. The loans to the new entrepreneurs and promoters are free from interest excepting that they are to pay a nominal service charge to RCF to carry on its activities.

The experience gathered during the previous years, both IFCI and RCF decided that the activities of RCF will have to be enlarged and as such it would be necessary to convert the society into public limited company under the Companies Act, 1956 which will enable IFCI to augment and mop up more resources for coping with the situation and to enlarge its activities not only for granting loans to new entrepreneurs and technocrats but also to carry out research in the industrial field to encourage new entrepreneurs , professionals and technologists in the country . With this end in view RCF has decided in consultation with IFCI to convert itself into a public limited company under Part IX of the Companies Act,1956 and transfer its entire activities including the Assets and Liabilities of RCF as a society in favour of a new company limited by guarantee at the first instance in the name and style of “ RISK CAPITAL AND TECHNOLOGY FINANCE CORPORATION LIMITED” (RCTF) in December 1986, which was then converted as a company limited by shares having it registered office at IFCI Tower, Nehru Place 61, New Delhi, 110019.

In 1991, IFCI Venture took up management of a Venture Capital Fund named VECAUS- III, floated by SUUTI and IFCI to promote varied projects across industrial sectors of Indian geography. The VECAUS-III fund was closed in the year 2007 and outstanding portfolio companies were transferred to SUUTI.

The Fund was officially closed through sale of portfolio in the year 2011-12.

Thereafter IFCI Venture also managed SEBI-registered Funds under Venture Capital Fund Regulations, 1996, India Automotive Component Manufacturers Private Equity Fund-1-Domestic (IACM-I-D), Green India Venture Fund (GIVF), India Enterprise Development Fund (IEDF) with total raised corpus of Rs.508 Cr. from domestic banks/ Retain Investors and FIs. The funds were closed in 2019 after divestment of investments.

In 2015, IFCI took management of SEBI registered Alternative Investment Fund (AIF 2012 Regulations) viz. “Venture Capital fund for Scheduled Castes” (VCF-SC), which was launched by Government of India, an initiative of Ministry of Social Justice and Empowerment (MoSJE). VCF-SC is a first of its kind Venture Capital Fund in India dedicated to promote entrepreneurship among the Scheduled Castes by providing concessional finance to them.