Govt Looking To Promote Startup Ecosystem With New Funds: Piyush Goyal

Since the launch of Prime Minister Narender Modi’s flagship Startup India scheme, the government of India has been aiding the growth of entrepreneurship in the country. To further boost this growth, Commerce and Industry Minister, Piyush Goyal, said that the government is exploring to deploy larger funds for startups.

Speaking on the sidelines of the Startup India Global Venture Capital Summit in Goa, Goyal said that with the deployment of larger funds and changes in the regulatory process, based on inputs given by the sector, the government is looking at a further simplified regime for the startup community.

According to a report by The Hindu, the startup community has been demanding for faster release of funds for investors from the INR 10K Cr Fund of Funds established under the Startup India initiative.

Notably, the fund is managed by the Small Industries Development Bank of India (SIBDI) and is supposed to be deployed over the 14th and 15th Finance Commission cycle ie by 2020.

To make the investment procedure simpler for the startups and the government, Fund of Funds also went digital in July 2019 through a web-based application, where startups can apply to be considered for funding from the government.

Recently, the commerce ministry in Lok Sabha has said that the government has invested INR 2,669.83 Cr in 279 startups from this Fund of Funds as of March 31, 2019.

Moreover, in order to address problems in the development of women entrepreneurship and tackle issues such as access to funding, market availability, business skills among others, the government has reserved 10% of this INR 10K Cr fund for women-led startups.

During his speech, Goyal also urged startups and venture capital investors to bring their concerns with the government so that they can be suitably addressed.”Whatever difficulties and concerns that startups and investors are facing must be communicated to the government. I assure you that they will be addressed,” he added.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.