“This is perhaps the best environment for a startup to operate in India: governments, both at the state and central level have numerous schemes, SOPs and funds to enable their success. The regulatory regime is also well aligned to changing industry dynamics, responding with agility to newer business models and creating mechanisms to mainstream them. By taking a fund-of-fund approach in its flagship Rs 10,000 crore SIDBI administered fund, the government has sent a strong signal to other LPs to invest in Indian funds, thereby growing the capital pool available to startups. Since nearly Rs 3,000 crore of this fund has already been deployed, with Rs 1,400 crore more slated for deployment in the coming year, this has already created a deployable capital pool of nearly 10x that amount. Founders are hustlers, with such a strong pool of capital available if they are facing difficulty in getting access to these funds, the excuse doesn’t fly. In any case, by keeping a one-arm distance between them and the startups using the fund-of-fund approach, one can’t even claim supposed government bureaucracy as a hindering factor."
- Utkarsh Sinha, managing director of Bexley Advisors
Full Article: http://www.newindianexpress.com/cities/bengaluru/2019/nov/07/what-are-the-challenges-in-availing-government-funds-2058169.html