NASSCOM: FALL IN FUNDING IS WORRISOME

Hyderabad, Feb. 12: The software industry lobby Nasscom has once again expressed concern over the falling fund flows into startups and called for added focus to galvanise the entrepreneurial ecosystem.

Nasscom had last November shared its concern over the taxation issues in the startup scene, which led to a steep 50 per cent fall in angel investments and a significant decline in series A funding.

“While angel investments are the critical first piece that gets a startup going, Series A fund is the one where the angel investors really make their exits and make money. That’s what incentivises them to continue their investments,” Nasscom president R Chandrashekhar said.

“We had pointed that out and felt that corrective measures are needed. However, we did not find that being addressed in the Budget,” he added. It can be noted that the taxmen had demanded ` 110 crore income tax from the etail major Flipkart.