‘After VCs, We Want Global Funds to Invest in Startups’
India is an exciting market, adds Prabhu at venture capital summit
Panaji: Commerce and industry minister Suresh Prabhu on Friday said the government is keen to get sovereign wealth funds and pension funds to invest in Indian startups. “After venture capital, we want to bring sovereign wealth funds, pension funds and funds with deeper pockets to join us,” Prabhu said at the first Global Venture Capital Summit here.
The minister said startups are the real new job creators of the world and new engine of growth for India. “There is no market, which is exciting as India... the worst is over and best is yet to come,” he said.
India has the world’s thirdlargest startup base with 14,497 recognised startups of which 27% are in tier-2 cities and 18% in tier-3 cities.
The Department of Industrial Policy and Promotion (DIPP) has invited about 100 funds from the US, China, Japan, Hong Kong and Singapore for the summit to attract foreign funding into Indian startups and promote ease of doing business. The Centre has already pumped in ₹ 880 crore in 170 startups under the Fund of Funds. Around 8,200 startups were recognised by DIPP in 2018 alone, leading to the creation of more than 89,000 new jobs this year, taking the total job creation contribution of recognised startups to 1.4 lakh.
“We have granted 41 patents to startups in the last two years to promote innovation,” DIPP secretary Ramesh Abhishek said. Abhishek added that the government has made 21 regulatory changes for startups and there is need to do more.