Through the Fund of Funds for Startups (FFS) program, the government sponsors alternative investment funds (AIFs) or venture firms such as Chiratae Ventures, Blume Ventures, Stellaris Venture Partners, Fireside Ventures and India Quotient.
“Rupees 10,000 crores or USD 1.2 billion over 10 years is not enough for a nation of our ambition, size and future. What we actually need is maybe Rs 5,000 or Rs 10,000 crore per year… I hope that when the novel government comes… they will have to loosen the purse strings even more and provide the necessary fuel for our ecosystem. Bahl said.
Talks about increasing the supply of capital for domestic start-ups began at a time when the startup ecosystem is experiencing a stern slowdown. According to Infosys co-founder S. Kris Gopalakrishnan, there is significant wealth in the country, so family offices or fund managers should generally allocate at least 15% of their investments to the startup ecosystem.
“When we look at these startups beyond Series C, we see that 80-90% of the equity actually comes from foreign funds. This is where my concern comes in: once all the risk is gone and the startup is on track to launch in an IPO, the owner is currently foreign,” Gopalakrishnan said.
ET reported on April 16 that the government is preparing a framework to reduce investment risks for local pension funds and insurers in the startup sector. The Center is also considering expanding Sidbi-sponsored FFS and Startup India seed funding programs.
