Funding quotient for start-ups: Private or govt

BANGALORE, INDIA: The ongoing BangaloreIT.biz here became a platform of knowledge sharing when eleven start-ups shared the dais talking about their new ventures and learned from veterans about the various options of funding from government and private entities.

The series of session dedicated to starts-up was conducted by BangaloreIT.biz at Young Entrepreneurs’ Start ups In Soaring Spirits (YESSS) forum on Thursday evening. S.Panikkassery, director MSME - Development Institute, highlighted various forms of aids in terms of funding that the government is providing to the start-ups.

He segmented the entire software and the manufacturing industry, in small medium and large categories.

“Enterprises need to file for the entrepreneurship memorandum to avail the government funds,” he said.

“Since, it is a non-profitable set-up the start-ups can get credit guarantee by participating in credit guarantee fund scheme for MSME, or even the option provided by SIDBI. Starting from 80 per cent cover for women entrepreneurs and small enterprises, the amount can go up to Rs. 400 crore credit in amount for some cases. And looking forward, it plans to establish around 100 help centers in next four years.”

Srini Vudayagiri, founder and partner, Stega Capital, who was another speaker, talked about the venture funds options for the start-up. He highlighted that one of the major factors that a venture capitalist looks at is the management. A good management team, even with a not-so-great business idea can see more growth than otherwise.

“Family and friends are always the first investors in a start-up but when the enterprises plan for a scale-up it needs larger amount, a stronger backup like a VC fund,” said Vudayagiri.

He cautioned that a company should undergo a thorough due diligence before they approach the VC company. This would not only help them realize their strengths but also easily turn the meeting with the VC company into a success. Highlighting the advantages of partnering with a VC is the the value add to a business.

“VCs are business oriented and they themselves look forward to making your business a success. In this way, they provide unpaid consultancy, partnership and business advice,” he pointed out.

Talking about the opportunities and role of start-ups, Suresh Bhagvatula, Visiting Faculty, NS Rahgavan Center for Entrepreneurial Learning (NSRCL), IIM, Bangalore said that a lot of budding entrepreneurs are there, but what it requires to get started is the idea and the team.

“In Bangalore, the young entrepreneurs’ ecosystem has many forums namely the open coffee club, Bar camp, kichstart, E-club, national entrepreneur network (NEM) and many more,” he said.

After this, the young budding entrepreneurs would have clearer vision of choosing their funding quotient.

Name
Email
Comment Here
Code Verification

Oriental Bank Of Commerce's SME schemes

Indian Bank's SME-friendly schemes

Japan auto parts SMEs seek tech ties-ups in TN

Syndicate Bank's SyndMSMECare

India's exports up 10 p.c. to $25.4 bn in Jan

Aakash tablet booking crosses 20 lakh

'IT is like a business partner for PTI'

Sleazegate: Technology spares none

Jailbreak software released for iPad 2 iOS 5.0.1

Why this blackout, Wiki?

Subscribe to PCQuest for iPad & Android tablets

Register Free at DQ Top 20 Online portal & get insights on the Indian IT Industry

Enterprise IT News and Analysis in your inbox

Subscribe to the free PCQuest newsletter

Growth of SME Sector in India

India's EXIM Policy 2010 / 11

Interaction with SMB Association Heads

Profiles of leading SMB Associations

RBI Guidelines on lending to SMEs

Sponsored Links

Custom Sites

Demo Downloads on

1-Click News Updates