Startups will not be short of money, government will create new equity fund for capital support
Young businessmen will not be short of money to make their idea a reality. In fact, the government is coming up with another option to fund the project. The government has informed today that it will soon create a new equity fund for start-ups. To provide additional capital support to entrepreneurs, Minister of State for Electronics and IT Rajiv Chandrashekhar said on Saturday that the government will create a new equity fund for start-ups with a limited stake of 20 per cent, and the fund will be managed by private fund managers. Will go. The government is constantly emphasizing on developing the startup ecosystem. And this step is a part of this episode.
The government is taking many steps to help the same startup. India has invited proposals from startups and farmer producer organizations of the country at the Dubai Expo. In this exhibition, the country has displayed its investment friendly policies and development opportunities in agriculture and allied sectors. Inaugurating the fortnight of 'Food, Agriculture and Livelihoods' at the Indian Pavilion at the Dubai Expo, Abhilaksh Likhi, Additional Secretary, Union Ministry of Agriculture assured that startups and FPOs will be provided access to equity grants, management cost and other available support measures. Proposals will be considered.
Finance Minister Nirmala Sitharaman has already announced regarding the equity fund and now further work has been started on it. In his announcement, the Finance Minister had said that there will be a fund where 20 percent of the government will be a limited partner and it will be managed by private fund managers.
Today, at an event organized by CII, the Minister of State for Finance said, "There will be a fund which will certainly be created and sponsored by the government, but it will be managed like any other private fund. These funds will be necessary private equity capital in addition to the existing funds.” Finance Minister Sitharaman had announced the creation of a government-backed fund to encourage future sectors such as climate action, deep-tech, digital economy, pharma and agri-tech. The government has already earmarked some funds like Startup India Seed Fund Scheme (SISFS) with an outlay of Rs 945 crore to help start-ups meet their capital requirement. The new fund will help meet the growing needs of startups.
