This is by far the best budget for start-up ecosystem in India. Raising capital is the biggest challenge that every entrepreneur face but with this step of Modi Government, India will see more and more people starting their entrepreneur journey in coming years.
Although the whole idea Rs.10,000 VC Fund sounds good but main question that needs to be answered here is how Modi Government will distribute this fund, whether they will give it directly to startups? or They will choose some other mechanism of fund distribution?
Apart from IT Start-ups , another sector which is going to get maximum benefit out of this Government Fund is Social Sector Startups. Raising fund in Social sector startups is always difficult because private VCs don’t want to risk their money and that’s where Government VCs can fill the gap. Government has high risk appetite and therefore they can invest in business which are helpful for society even though they don’t generate too much of profits.