According to Investopedia, a startup is defined as a budding company that is just developing. The company is started with an idea to provide a unique solution, be it a product, service or software to mitigate the complicated problem or to more efficiently serve something that has already been there.
Reports state that almost 10 million jobs are needed in a year in India and not large organisations but these startups contribute to these openings. Approximately 3000 startups spurred in the Indian startup ecosystem in 2018 and it is evolving every day.
With approval from the Union Cabinet in June 2016, the Government created a Fund of Funds for Startups (FFS) with a sum of INR 10,000 crore to support the fundings of startups, over a period of XIV and XV Finance commission cycles. As of 2019, INR 2200 crore has been issued to Small Industries Bank of India (SIDBI). Moreover, SIDBI further committed INR 2265 crore to 40 Alternate Investment funds (AIFs). 193 startups received funding of around INR 1150 Crore from AIFs till 2019. Furthermore, the Government has started the Bank of Ideas and Innovations program to boost innovative ideas of companies. Government’s Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA) is also there that has started with an initial amount of INR 20,000 crore to extend benefits to around 10 lakhs SMEs. Other state government programs include Maharashtra Centre for Entrepreneurship Development, Rajasthan Startup Fest, Kerala State Self Entrepreneur Development Mission (KSSEDM), Karnataka Venture Capital Fund, etc.
Apart from the Government and State Government, there are various funding associations and angel networks that support the startups in India. From providing funding to mentoring the entrepreneurs, they are constantly supporting the startup funding ecosystem of India.
Getting a startup funding in India is not an easy cakewalk, although with time it has got less time-consuming. Here are few tips for budding entrepreneurs to help in raising adequate funds from the right investors –