In India, startups are raising record amounts of money with the use of numerous financial instruments.
Important figures related to start-ups in India:
The figures show that Indian entrepreneurs raised more than $19 billion in the capital in the first six months of 2022, the most in nine years. $10 billion was raised during the same time period the previous year.
- 86 alternative investment funds have a commitment of Rs 7,300 crore (AIFs). Venture capital, hedge funds, private equity, and other types of investments are furthered by AIFs, which are financial vehicles. The SEBI first made them available in 2012.
- Under the Fund of Funds for Businesses (FFS) scheme, more than Rs 9,500 crore is invested in more than 600 startups. The FFS initiative, which is run by SIDBI, offers equity capital support for the expansion and development of innovation-driven businesses.
- Rs 365.75 crore has been given to 99 incubators under the Startup India Seed Fund initiative, while Rs 76 crore has been approved for 436 startups. A total of Rs 945 crore has been set aside for seed funding entrepreneurs through incubators.
Enabling Govt. policies for startups:
- The government is focused on creating a strong national investment framework to meet the needs of new entrepreneurs due to the spike in the creation of startups.
- The government contributes to the capital of SEBI-registered venture funds, which invest twice as much in startups, as part of the FFS mandate.
- To ensure that the returns go back into the nation, domestic funding is encouraged, and a positive response to that has been noted.
- With the help of SIDBI, the DPIIT will also launch an online platform in two months, making it easier for entrepreneurs to receive early-stage funding and contact investors. This site will allow AIFs to register and assist startups in doing so.
Ecosystem Of Start-ups:
- Across all 28 states and eight union territories, there are 73,205 startups from more than 645 districts.
- The majority of startups are located in tier 2 and tier 3 cities.
- There are more than 100 unicorns in India, 44 of which appeared in 2021.
- More than 13,000 startups in the GeM are completing more than 1.1 lakh orders worth Rs 5,600 crore.
Opportunities for Start-ups globally:
- China’s ecosystems have fallen in the rankings, reflecting the relative reduction in early-stage investment compared to other ecosystems, while India is closing the gap with the US and China.
- The government is giving entrepreneurs more support so they may benefit from their visibility on a global scale since events like the Dubai Expo can close crucial funding gaps in this rapidly expanding industry.
- SLUSH is a significant chance for selected Indian companies to present their ideas to venture capital firms, corporate experts, policymakers, and investors in Helsinki.
Other reforms in start-ups:
- The Center is also placing a lot of faith in domestic measures including 50 regulatory improvements that will make it easier to run business, allow for capital raising, and lessen the cost of compliance.
- A recognised startup now benefits from blockchain-based recognition, self-certification under nine labour laws and three environmental laws, relaxations in public procurement, access to stakeholders and programmes through the Startup India online hub, and recognition under nine labour and three ecological laws.
- Startups’ applications are processed more quickly in order to help their IP protection; in comparison to other businesses, they receive a rebate of 80% for patent applications and a 50% refund for trademark applications.