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Funding for Startups

Funding for Startups

Funding for Startups

India has a bourgeoning domestic market and everything is evolving at a rampant pace. Therefore it can be safely said that the start-up market in India is not a passing phase. In news coverage by TNW news, the amount of funds India received between the years 2010 to 2014 from venture capitalist increased from thirteen million dollar to one thousand eight hundred and eighteen million dollar. There is more good news for entrepreneurs that wish to start a new business. Finance minister Arun Jaitley recently launched two funds provided by Small Industries Development Bank of India (SIDBI) catering to startups and small businesses.

India Aspiration Fund

The India aspiration fund is aimed at attracting thousands of crores of equity investment into new startups and MSME businesses. The India Aspiration Fund is aimed at creating employment for several people and educated youth in India.

The fund will invest in venture capital funds thereby meeting the equity requirement of startups and MSMEs. Thus the fund will solve the issue of mobilizing margin money that many startups face today. In addition, it is proposed that Life Insurance Corporation of India will be roped in as a partner and co-investor of the India Aspiration Fund.

Foreign Investors

India is attracting the attention of foreign investors and private equity firms from across the globe. Some of the prominent foreign investors and private equity firms investing in Indian startup businesses are:

  • Sequoia Capital made investment of worth 208 million dollar across fourteen deals in India.
  • Accel Partners were amongst the early investors and had made multistage investments in internet technology companies like Babyoye, Bookmyshow, Myntra, Common floor, etc.
  • Tiger Global is one of the top investors in India but had a lean start. They were soon able to see a rise after a massive infusion into Flipkart.

Investors who continue to remain actively invested in Indian startups are:

  • Helion Venture Partners
  • Sequoia Capital
  • Blume Ventures
  • Kalaari Capital
  • Matrix Partners
  • Tiger Global
  • Softbank

Bangalore remained a city of interest for most investors. Several entrepreneurial startups were funded in Bangalore.