2. CONTENT
Introduction
Definition of Start-up and Why Start-up?
Key Points of Start-up India Scheme
Start-up Eco system
Facts and Figures : Start-up India
Challenges Faces by Indian Start-up
Start-up Finance : Biggest question facing new start-up
3. Introduction
Startup India is an initiative of the Government of India. The campaign was first announced by Indian Prime
Minister, Narendra Modi during his speech in 15 August 2015.
Start-up India, with mandate to promote and encourage young entrepreneur of our country . The action of
plan of this initiative , is based on three pillars.
Simplification and Handholding
Funding support and Incentive
Industry Academia Partnership
The start-up India Initiative aims to fill gaps in the economy for the growth and development of start-up and
also boost digital entrepreneurship at the grassroots.
4. Why Start-up?
"National Startup day is a validation of the role of startups in the growth of country's GDP and
strengthening India's position at a global stage. This initiative will not only make startups
mainstream but also encourage young talent from seeing entrepreneurship as a primary career
option.
To Boost up Promote Start-up Entrepreneurship
Core Objective is to generate maximum employment.
Encourage the people who have the potential to innovate and start their own business.
To boost up banking and finance Sector.
Be a job creator (Then why remain a job seeker ? Become a job provider.)
5.
6. Key Point
• 10,000 crore startup funding pool.
• Reduction in patent registration fees.
• Improved Bankruptcy Code, to ensure a 90-day exit window.
• Freedom from inspections for the first 3 years of operation.
• Freedom from Capital Gain Tax for first 3 years of operation.
• Freedom from tax for the first 3 years of operation.
• Self-certification compliance.
• New schemes to provide IPR protection to startup firms.
• Built Startup Oasis as Rajasthan Incubation Center.
7. Facts and Figures : Start-up India
India has about 50,000 startups in India in 2018; around 8,900 – 9,300 of these are technology led
startups 1300 new tech startups were born in 2019 alone implying there are 2-3 tech startups born every
day. Significantly, the number of women entrepreneurs stood at 14%, up from 10% and 11% in the previous
two years
8. Challenges Faces by Indian Start-up
A recent study, “Entrepreneurial India” by the IBM institute found that 90% of Indian start-up FAIL
within five years. And the most common reason for failure is lack of innovation – 77% of venture
capitalist surveyed believe that Indian start-up lack new technologies business models.
Planning : As the saying goes, “if you fail to prepare, prepare to fail.” So don’t leave the details to
later.
Funding : This the main reason .
Lack of mentorship : You may have great product or idea, but lack the necessary guidance, market
experience or knowledge to take in to the next level. That’s where a mentor comes in, with the
wisdom and confidence to help you clear those roadblocks that are holding your start-up back.
Human resources & Poor business ethics : “Since 2015, as many as 1530 start-up have closed down
in India. And the major reason is due to the replication of western business models, and not Lack of
subsequent funding from the investors. The highest number of failures were in logistic, e-commerce
and food technology.
10. Fund raising question
How much Fund should I raise ?
When should I raise money?
At what stage should I not ?
What are the relevant sources of finance for me and how should I prioritize
them?
How much equity should I give ?How should I give equity when I am unable to
value my startup ?
How should I reach out to investors ?
What is right structure / instrument
11. Here are the ways for Funding to a Start-up
Bootstrapping: Self-funding is also known as bootstrapping, is an effective way
startup financing, especially when you are starting your business. You can invest
from your own saving or can get from family and friends.
Crowd funding: is "the practice of Funding a project or venture by raising many
small amounts of money from a large number of people, typically over the
internet. Some of the popular crowdfunding sites in India are Indiegogo,
Wishberry, Ketto and Fund lined.
Angel Investors: Angel investors are individuals with surplus cash and a keen
interest to invest in upcoming startups .They can also offers mentoring or advice
along with capital. Angel investor have helped many indian startups (Unacademy
,Crown-it, BookEventz, WittyFeed Some of top Angel investors are Mr. Ratan Tata
Rajan Anandan, Vijay shekhar Sharma, Sachin Bansal
12. Venture Capital Venture capitals are professionally managed funds invest in
companies that have huge potential to grow. They usually invest in a business
against equity and exit when there is an IPO or an acquisition. Some of the well
known Venture Capitalists in India are Helion Venture Partners, Accel Partners,
Blume Ventures, Nexus Venture Partners.
Funding From Business: Incubators & Accelerators: Early stage businesses can
consider Incubator and Accelerator programs as a funding option. Found in
every major city, these programs assist hundreds of startup businesses every year.
✓ Incubators are like a parent to a child, who nurtures the business providing
shelter tools and training and network to a business.
✓ Accelerators so more or less the same thing, but an incubator helps/ assists/
nurtures a business to walk, while accelerator helps to run/take a giant leap.
Popular names are Amity Innovation Incubator, Angel Prime, CIIE, IAN Business
Incubator, Villgro, Startup Village and TLabs.
13. • Govt Programs That Offer Startup Capital :
Drawing Government has launched 'Bank of Ideas and Innovations' program. The
Government of India has launched 10,000 Crore Startup Fund in Union budget
2014-15 Government backed 'Pradhan Mantri Micro Units Development and
Refinance Agency Limited (MUDRA)' starts with an initial corpus of Rs. 20,000
to extend benefits to around 10 lakhs SMEs.
Raise Money Through Bank Loans :
Normally, banks are the first place that entrepreneurs go when thinking about
funding.. The bank provides two kinds of financing for businesses. One is working
capital loan and other is funding.
Working Capital loan is the loan required to run one complete cycle of revenue
generating operations and the limit is usually decided by hypothecating stocks
debtors..
Funding from bank would involve the usual process of sharing the business plan
and the valuation details, along with the project report, based on which the loan is
sanctioned. . Almost every bank in India offers SME finance through various
programs.
