Development of the Funding Ecosystem

A key indicator of the maturity of India's startup ecosystem is the development of a robust financing hierarchy. Nowadays, a wide range of investors support startup ventures, including:

• Ultra-High Net Worth Individuals (UHNWIs) and unicorn founders acting as angel investors

• Angel Networks that pool resources from HNWIs

• Venture Capital (VC) firms

• Corporate investors

• Government grants

• Incubators and accelerators

Government initiatives have played a crucial role in rapidly bolstering the startup ecosystem. Programs like the Startup India initiative, Seed Fund Scheme, and Atal Innovation Mission have institutionalized startup culture through incubators and provided essential financial support through grants. Various schemes have led to the government funding INR 960 crore to startups and allocating INR 828 crore for infrastructure support.

Additionally, the Credit Guarantee Scheme for Startups (CGSS) aims to offer collateral-free, fund, and non-fund-based credit support to startups, benefiting over 7,500 startups within three years. The success of these initiatives is reflected in the cultural shift towards entrepreneurship, exemplified by the popularity of shows like 'Shark Tank,' which have ignited widespread interest in startups.