Speaking at the ninth edition of The Economic Times Startup Awards (ETSA) in Bengaluru, the minister said that occasional roadblocks in the shape of calibrated financing support will only help the startup ecosystem mature and come of age.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| Indian School of Business | ISB Digital Transformation | Visit |
| Indian School of Business | ISB Product Management | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
| Northwestern University | Kellogg Post Graduate Certificate in Product Management | Visit |
“The funding winter is more in the mind than in reality. Good ideas will always have investors,” Goyal said.
“We will see a churn in the industry but cash flows and profits are finally becoming relevant … My business experience says that whenever you have too much cash, you tend to make mistakes.”
A little tight-fisted environment, where money will flow largely to proven ideas, will always be good for those running a business, said Goyal at the Awards function.
Discover the stories of your interest
“You will manage money better and control expenses. Occasional roadblocks will only help our startup ecosystem mature,” Goyal said.
Goyal said the government has initiated several schemes such as ‘Fund Of Funds’, credit guarantees and mentorship programmes to generate opportunities for the startup sector.
“There is enough money for good ideas,” he said, and called upon Indian investors, including unicorns, to set up a homegrown fund to support the startup ecosystem.
Responding to a question on insurance companies or banks staying away from buying into startups, Goyal said that the “public mindset is not yet mature enough to accept greater risk, even if it comes with greater reward.”
He also said those that believe sectoral laws are becoming a constraint for growth, they can give inputs on the compliance difficulties startups face.
“We can come up with more laws on consumer protection that will help startups,” he said.
Insisting that the newly enacted data protection law is not hurting anyone, Goyal said: “We’re not interfering in anyone’s business… for instance, with consumer affairs, all we want to ensure is that the consumers are protected and not coerced into something detrimental to them.”
