Startup India Fund falls short of allocation target

Must Read

Jharkhand polls for 81 constituencies from November 30 to December 20; counting on 23rd December

Addressing a press meeting today, Chief Election Commissioner Sunil Arora has announced the poll dates for Jharkhand Legislative assembly....

Congress forms six-member committee of AICC to review situation of NRC in Assam

In a bid to review the condition of Assam state after the implementation of the NRC exercise, Congress party...

Shiv Sena elects Eknath Shinde as party’s legislative leader; Sunil Prabhu appointed as chief whip of party

In a striking breakthrough, Shiv Sena elected senior minister Eknath Shinde as the party's legislative leader today. It has...

The Startup India fund, when launched in 2016 had a disbursal target of ₹3,300-3,500 crore to venture capital. However, as reported by ET, the fund fell short of its capital allocation target by around ₹1,000-1,200 crore.

According to the data with Sidbi (Small Industries Development Bank of India), the Startup India fund had allocated ₹2,265 crore to VC funds at the end of March 2019.

“With the robust pipeline in hand, we don’t foresee any problem in deployment of the corpus under fundof-funds for startups during the current financial year in a much more accelerated way,” a Sidbi spokesperson said.

“The platform relating to the receipt of online application from the funds without any manual intervention is under preparation and will be operationalised during next week,” the spokesperson added.

On the other hand, President Ram Nath Kovind, while addressing the Parliament last week, said that the government wants to create 50,000 startups by 2024.

Besides, the BJP (Bharatiya Janata Party) had announced, in its election manifesto that it will creat ₹20,000 crore seed fund to boost early stage statups. Albeit, after the deficit in the allocation, there is no further announcement on the new fund for seed stage funding from the government.

Whereas, earlier in June, the government was planning tax sops for startups with regards to the employee stock option programme (ESOP) in the budget next month.

Sidbi also had plans to cut the overall timeline for VCs to apply and finally get the capital to invest in startups. It typically takes about 4-5 months for a VC to apply and get the approval for capital.

Furthermore, Kae Capital, Saha Fund, India Quotient, Artha Venture Fund, Stellaris Venture Partners are some of the funds who have got capital from the Startup India fund.


Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Israeli PM’s challenger fails to form govt

Jerusalem, Nov 21 (IANS) Israeli Prime Minister Benjamin Netanyahu's challenger, Benny Gantz has announced that he had failed to...

UK’s Prince Andrew steps back from public duties over scandal

London, Nov 21 (IANS) The United Kingdoms Prince Andrew has announced he is stepping back from royal duties over the Jeffrey Epstein scandal.In a...

When Julie Andrews watched a ‘wild’ fake orgy on film set

Los Angeles, Nov 21 (IANS) Actress Julie Andrews has revealed that she had watched a 'wild' fake orgy scene on the set of her...

Joan Collins hates wearing jeans

Los Angeles, Nov 21 (IANS) Actress Joan Collins does not like wearing jeans.In an interview to Vogue magazine, the "The Stud" actress shared her...

Donald Tusk elected as new EPP leader

Zagreb, Nov 21 (IANS) The European People's Party (EPP) elected outgoing President of the European Council Donald Tusk as its new leader at annual...
- Advertisement -

More Articles Like This