The world is flushed with funds looking for well-structured good projects, he pointed out
The innovation and start-up ecosystem is strongly positioned to find solutions to challenges facing the world today, India's G20 Sherpa Amitabh Kant said on Monday, asserting there is no shortage of funds for good start-ups with strong business models.
Speaking at the 'Startup20 Shikhar' event, he advocated a multi-pronged approach of 'fund of funds', credit enhancement schemes, and a sharp focus on good governance for a robust start-up ecosystem.
Indian start-ups have successfully demonstrated the power of population-scale solutions at low cost, he said.
Kant said that there is no funding winter in start-up space, and pointed to the "spring" of capital availability for good startups.
The world is flushed with funds looking for well-structured good projects, he pointed out.
Kant spoke about the success of India's digital public infrastructure, biometric ID, digital payments, and the strength of its startup ecosystem, and added that the country has demonstrated the huge power of digital technology.
India has over 1,00,000 start-ups and 108 unicorns, he said.
Kant underlined the importance of self-regulation and good governance for start-ups and entrepreneurs.
"Start-up innovators start innovating and lose out on good governance. Today's start-up is tomorrow a Fortune 500 company. So the issue of financial propriety and governance is important," he said.
Kant added, "We must build a culture of great, good governance among start-ups, which must be done by startups themselves," he said.
The government must remain at an arm's length.
"Self-regulation is the key from inception to early stage to maturity to IPO," he said.
Indian start-ups must give priority to good governance and financial management since inception, and not consider these as an afterthought, he pointed out.
Kant emphasised the significance of Startup20, saying, the Startup20 Engagement Group marks a milestone in the journey of the global startup ecosystem.
Speaking on the occasion, Som Parkash, Minister of State for Commerce and Industry, emphasised the need for fostering global innovation and a start-up ecosystem that values culture and diversity considerations.
India is climbing on the global innovation index because of its dynamic start-up ecosystem, he noted.
Embracing a culture of diversity opens up the limitless potential for innovation, the minister said.
The Policy Communique of Startup20 unveiled in Gurugram during the Startup20 Shikhar Summit on Monday, lays down recommendations for the participating nations. From mooting raising the joint annual investment of G20 nations in the global startup ecosystem to $1 trillion by 2030 to addressing the challenges startups face in expanding to international markets, the communique spans foundation, global alliance, financial support, inclusion and sustainability.
It called for the creation of a global definition framework for startups across G20 nations, the adoption of the policy framework that strengthens the startup ecosystems within and across G20 nations, and enabling measures to ease the cross-border flow of capital across G20 nations.