Government to Push Insurance Regulators to Invest in Startups

Government will hold talks with pension and insurance fund regulators to invest in the start-up eco-system in order to open more avenues for upcoming entrepreneurs for accessing capital. “We would want them to invest in venture capital funds and start-ups They have their own procedures and risk assessments to follow and rightly so,” said Ramesh Abhishek, secretary, Department of Industrial Policy and Promotion (DIPP).Incubators and accelerators in a meeting held today with the DIPP raised issues regarding access to funds and seed capital for start-ups as well as tax related benefits. “There is work to be done. They have asked for some recognition for start-up builders,” said Nirmala Sitharaman, commerce and industry minister. The DIPP today invited feedback and suggestions from the incubators on the Start-up India Action plan.

DIPP will also organize a meeting between Small Industries Development Bank of India, VCs and incubators to address the difficulties in accessing capital through the fund of funds. The meeting will be held on February 20. Incubators have also asked the DIPP to provide grant which can be used in providing seed funding to the start-ups. DIPP will also look into old and archaic laws which need revisiting such as the Societies Act of 1860. The incubators have been asked to compile the list of all such Acts which are not in keeping with the present day requirements and framework of start-ups.