Startup Funding in India Likely to Grow by Merely 4% in 2020. Govt Consider Exemptions From Regulatory Filings for Startups

Statup funding likely to grow merely 4% in 2020. Govt mulls exemptions from regulatory filings for startups. 

 

STARTUPS

Startup funding will turn flat (at best) or slightly negative (at worst) by the end of 2020", says American market research company, Forrester.

As per 2020 predictions for startup ecosystem by American market research company, Forrester, startup funding is likely to grow merely at 4% YoY in 2020 as venture capital investors (VC) would opt for increased scrutiny of startups with high valuations, source of funds for new investors and fewer new businesses coming up in various markets. Financial Express

 

Startup Funding in India Likely to Grow by Merely 4% in 2020. Govt Consider Exemptions From Regulatory Filings for Startups

 

Govt may allow startups to issue 50% of their paid-up capital as sweat equity and extend the period of exemptions from other regulatory filings for up to 10 years instead of five now.

In a bid to encourage the startup ecosystem in the country, the Ministry of Corporate Affairs is planing to allow startups to issue 50% of their paid-up capital as sweat equity and extend the period of exemptions from other regulatory filings for up to 10 years instead of five now.

 

They will be exempted for 10 years from a rule that bars private companies from raising deposits exceeding 100% of their paid-up share capital. ET Tech

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