InvestorQ : How will the start-up registration with Start-Up India, help the entrepreneur in raising funds for the running of the business?
Rashi Mehra made post

How will the start-up registration with Start-Up India, help the entrepreneur in raising funds for the running of the business?

Answer
image
sarah Leo answered.
1 year ago
Follow

The most important challenge most businesses face over time is funding. Obviously, people can bootstrap the business for a start, but that is not a permanent solution. Most entrepreneurs have a simple problem. Due to lack of experience, security or existing cash flows; entrepreneurs fail to attract investors. Besides, the high-risk nature of start-ups ensures that a significant percentage fail to take-off. This puts off many investors, unless the proposition is very lucrative. In order to provide funding support, Government has set up a fund with an initial corpus of Rs.2,500 crore and a total corpus of Rs.10,000 crore over a period 4 years (i.e. Rs.2,500 crore per year). The Fund is in the nature of Fund of Funds, which means that it will not invest directly into Start-ups, but shall participate in the capital of SEBI registered Venture Funds

2 Views