Funding is a dreadful word when it comes to startup. Even the greatest of all ideas needs funds to be implemented. With around 18000 startups in India, it can safely be concluded that Indian youths are power houses of ideas. But how many of these outlooks have been objectified and enacted? How many of them have made it large?
Lack of capital investment is one of the major reasons for many ideas to remain only ideas. Funding is one of the most significant ways to fan the fire of these tiny yet big ideas.
The government in India is focusing its attention on the young minds in the country. These young minds can be maneuvered in the right direction by providing employment. A befitting job is the best way to guide these juveniles to ethical modus vivendi.
According to the Inshorts Youth of the Nation Poll (YOTN), 68% of 42,958 respondents said that in 2016 they would prefer to work with a startup than a large corporation. NASSCOM also reports that startups generated around 80,000 jobs in 2014-15.
To spur these aspirations, government of India announced a 5-fold hike in government budget for funding startups. The increase in the budget for funding startups is planned for next fiscal. This huge step is a part of “start-up India” initiative.
Indian government intends to regale aid, in the form of seed funding to 50-80 new ventures in 2016-17. The funding will range from 50 lakhs to 1 crore. Seed funding is also known as seed money or seed capital. It is a form of security offering in which an investor invests capital in exchange for an equity stake in the company.
As a part of this announcement government has also escalated the overall funding for startups from 40 crore to 200 crore.
Hope this new development cheers up the budding entrepreneurs with a fresh fervor.
All the best!!