At the first Global Venture Capital Summit in Goa, Suresh Prabhu, Minister of Commerce and Industry said that the Government of India is interested to bring sovereign wealth and pension funds to invest in the Indian startup ecosystem. He said that startups are creating a lot of jobs and are the future of India’s growth.
“After venture capital, we want to bring sovereign wealth funds, pension funds and funds with deeper pockets to join us,” he said at the first Global Venture Capital Summit. “We have granted 41 patents to startups in the last two years to promote innovation. The government has made 21 regulatory changes for startups and there is need to do more,” DIPP secretary Ramesh Abhishek said.
Indian startup ecosystem has received a lot of funds from venture capitalists, banks and angel investors. The Indian startup ecosystem raised a total of around ₹3,800 crores ($535.68 million) in November 2018 in 11 seed rounds, 6 debt rounds, 4 angel rounds, 7 series A rounds, 6 series B rounds 3 series C rounds, 2 series D rounds, 2 pre-series A rounds, 1 pre-seed round, 1 private equity round and 5 unknown rounds of funding.
India has 14,497 recognized startups out of which 18 per cent are located in tier-3 cities and 27 per-cent in tier-2 cities. With this huge number, India has the world’s third-largest startup ecosystem. The Department of Industrial Policy and Promotion has requested more than 100 funds from China, Hong Kong, Japan, Singapore and the United States to invest in Indian startups. This Global Venture Capital Summit was meant to attract foreign funds and promote ease of doing business in India.
The central government has already invested INR 880 crores in more than 170 different startups under the Fund of Funds. In 2018, DIPP recognized around 8,200 startups. And these startups together created more than 89,000 new jobs this year. The total job creation by all the recognized startups counts to 1.4 lakhs which are impressive and likely to grow with the growth of the companies.