Startups need funds
Recently, Commerce and Industry Minister Piyush Goyal held talks with more than 75 people from the US, Japan, Korea, Singapore and India who together manage $30 billion worth of assets in the Indian region alone.
Goyal urged Global Venture Capital (VC) funds to focus on startups from Tier-2 and Tier-3 cities and to consider large capital investments, including risk capital, in them. Of the 61,000 startups approved by the Department for Promotion of Industry and Internal trade (DPIIT), 45 per cent are from Tier-2 and Tier-3 cities. They need huge funding support that cannot be tackled only through traditional investment methods.
Go beyond traditional methods
According to industry figures, the Indian startup ecosystem raised a record $42 billion in 2021 from a variety of sources, but most of the funds were seized by leading cities.
Goyal encouraged VC Funds to go beyond traditional areas and invest in new and emerging sectors, promote the intellectual property created by young Indian entrepreneurs and provide them with the skills to enhance their operations.
Startup India Innovation Week
The government has already implemented 49 regulatory reforms to ease business for startups, facilitate the capital accumulation and reduce the compliance burden.
The roundtable was held via video conference as part of Startup India Innovation Week. Topics covered included ‘Building from India to the World’, ‘Digital India Outlook’, ‘Regulatory Updates for Global and Domestic Funds’ and ‘Opportunities and Policies in India How the Habitat Formed’. DPIIT Secretary Anurag Jain and key regulators were also present.
