Startup funding on decline

Startup funding - Issues Startup investment is getting scarcer day by day. Obviously, venture investors are becoming more and more cautious due to overvaluation. There is a need for improvement in the system as well as increase the quality of business models. Some of the issues identified: - It is too difficult to expect same ecosystem for startup in India in USA or other developed countries. - India is different from USA and other developed countries and have cultural issues in being in the comfort zone of the startup culture. - Many entrepreneurs in India are not aware about the concept of startup. - Entrepreneurs are not aware of schemes such as Pradhan Mantri Udyami Mitra Yojana (PMUMY) or training and support available through organisations such as National Institute for Entrepreneurship and Small Business Development ( Ministry of Skill Development and Entrepreneurship). - Complicated documentation is required for starting a small business. - Diverse tax structures and regulations in different states makes it difficult for entrepreneurs to scale-up their activities. - Government makes it difficult even to pay taxes. - Newly introduced online systems for paying taxes and for other services do not function properly. - Public sector banks are not interested in government schemes and initiatives to promote startups and small business units. - Funding to the start ups or small entrepreneurs is very difficult as collateral is mandatory. - Government actively discouraging entrepreneurs by retaining many kinds of taxes. - Many levels of government clearances and permits required for small businesses. - Discretionary powers of government officials breeds corruption. - Indian universities should offer education in technologies such as nuclear science and space technology widely. - India is greatly disadvantaged due to lack of widespread education facilities. more  

My suggestion to members is that there are schemes which are being implemented through Govt Training Partners (we are one such org). One such program is the PMUMY or Pradhan Mantri Udyami Mitra Yojana which covers projects upto 10 lacs - NO collateral security is reqd. However, margin of 20% is the promoter's responsibility. I have also been informed by NIESBUD (under MSDE, Govt of India) that some viable proposals upto 25 lacs have also been cleared without collateral requirements. While India has a bureaucratic eco-system, our entrepreneurs who have the tenacity, do survive! I have uploaded the form in: www.eduskilltrain.com more  

If venture fund claim that proposals are unrealistic for benefits then the proposals must be tied up to some central universities by Government of India to help proposer to accomplish the best out of initiator's mind for the public welfare. Yes I have my project, I have fabricated and tested that is 50% efficient because of my designed drive and required drive Mis-Match with the availability within my means. But now I have conceptualised an improved designed machine and I need fabrication, testing facilities from Central universities or state for the Central Government to own the Patent. This will help leverage further my strategy to Eradicate Malnutrition, Terror Nurseries, Plug & bring back black money to leave a civilized world to our children. This is possible and Bharat can be the Beacon to world civilization that is TRULY Compassionate, Committed, dedicated than that is Divide & Conquer, grow Hatred thereby go Extreme Greedy Mad to Voluntarily go in to Solitary Cell (similar to ICU of Mental Asylum) to survive with Fear by paying protection money and making our children to survive only by paying protection money. My product is only for the Narendra Modi Government. Thank You, Yours sincerely, K.S.Nagarajan more  

Thanks for your information. How can i start work please guide me step by step at earliest if possible. Awaiting your response more  

Thanks all for the good suggestions: @Vishav Bandhu Monga - points you raised regarding government machinery are relevant and noted. Thanks. @Kaushikk D. Vyas - very important point for lack on educational opportunities in futuristic technologies. Very few government establishments are keeping these technologies - nuclear, space - with themselves only, thus depraving a widespread development for the society. We can see the example of SpaceX, a private startup, that has now been adopted by NASA as its replacement of space shuttle programme. A strong message on this issue has to go to the government. Thanks for you inputs. @K.S.Nagarajan - probably very important opportunity exists in promoting some of the technologies practised in ancient India. Perhaps city planning and sanitation of Harappan cities, excellence in metallurgy etc could be considered. Thanks. @Rajesh Kumar Sundararajan - All the fours systemic issues you raise are important. Will have to see whether there is an opportunities here for startups to come up with some alternative solutions, that can help the government to overcome these issues. @P A Cariarpa - Food and agriculture is the most important sectors for doing business in India. If you have any specific questions, I am sure many people will be there in this forum to help. @Pawan Nad - It is very important experience you share. It is becoming very difficult to raise funds these days, especially from PSU Banks. With 3-4 startups opening shop every day, investors are becoming more choosy. There is still investments for good ideas, but proper venture investment centric proposals are required. This one area that can be improved.Thanks. @Muthuswamy Narayana - Feasibility studies and psychometric testing are important. Thanks. @R.SURESH KUMARAN TAMPI - You have raised some important systemic issues. Thanks. @SNEHASIS NANDA - Cultural differences are important. There could also be possibilities here a startup can benefit from. Thanks. @Kumar Ayyavoo - It is true: Give respect, buy respect. But I am more in favour of Indian startups finding own way forward, rather than depending in any one. I will wait for a few days more for more comments and summarize them and then perhaps we can look in the root causes for these issues befogging going into proposed solutions. Regards, Hari Tulsidas more