What is the current scenario of startup funding in India? - LetsDiskuss
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What is the current scenario of startup funding in India?

Kaushal Singh

@ Student | | Share-Market-Finance

A startup is a young company that looks to solve a problem which nobody has tried to solve or solve an existing problem in a different manner. In the current scenario, India has become a major hub for startups. With India’s ease of doing business rank jumping to 77, it's a clear sign that the Indian government wants to make India a hot destination for investment by making the policies and regulations conducive for businesses to prosper. According to a report by Startup India and NASSCOM, India is currently the 3rd largest country behind only US and UK with 20, 000 new businesses and 5200+ technology-based new companies which may potentially reach figures of 10,500 by 2020.

Having so much potential of growth in the startup space, India surely is becoming a hot destination for budding entrepreneurs who wants to solve problems and extract value out of it.

Let’s take a look at the lifecycle of a startup. The first stage is something we call as pre-startup which is nothing but the phase of discovering an idea/product suitable to solve a particular problem. Then we look for potential customers for the product/services. After that comes the startup stage. This is the stage when a startup is working as a company but in a very initial stage and with limited funds. So, naturally, it will look to scale up which is known as the growth stage where scaling happens. Having discussed stages of a startup it's that you should know how to raise funds for all this. The funding process involves a series of rounds which starts from pre-seed or self-funding and ends with series C round. The whole process typically involves the following rounds – self-funding, crowdfunding, series A, B, C.

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