FFS announced by PM Modi in 2016 under the Startup India programme has so far committed Rs 3,123.20 crore (same since last year) to the 47 AIFs who have raised a corpus fund of Rs 25,728 crore and put Rs 3,378.47 crore in 320 startups.
The growth of foreign investments in Securities and Exchange Board of India registered alternative investment funds (AIF), which invest in DPIIT-registered startups under the Startup India’s Fund of Funds for Startups (FFS), has declined in FY20, according to the government data. The foreign investors poured Rs 1,209 crore in these AIFs in FY2018 which increased by 43 per cent to Rs 1,733 crore in FY19. However, in 11 months of FY20 (till February), the investment jumped by only 19.8 per cent to Rs 2,077 crore, as per the data shared by the Commerce Minister Piyush Goyal in the Rajya Sabha on Friday in response to a question on foreign investments in Indian startups.
Till February 18, 2020, 320 startups have received funding from 47 AIFs through Rs 10,000 crore FFS. This has increased from 247 as on June 24, 2019 — growing by 29.5 per cent, Goyal had shared the data in the Lok Sabha last week. FFS announced by PM Modi in 2016 under the Startup India programme has so far committed Rs 3,123.20 crore (same since last year) to the 47 AIFs who have raised a corpus fund of Rs 25,728 crore and put Rs 3,378.47 crore in these 320 startups, as per Goyal. Out of the amount invested, Rs 912.91 crores have been drawn from FFS. Rs 10,000 crore corpus is likely to be secured during the 14th finance commission cycle and the following 15th cycle based on the fund’s progress and availability of funds.
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The government so far recognised 29,929 startups since the launch of Startup India scheme in January 2016. According to a Bain & Company and IVCA report earlier this month, India is the third-largest startup ecosystem in the world after the US and China in terms of total tech startups. While India has 6,400 startups, China has 9,000 of them and the US has a whopping 57,000 startups. Home to Silicon Valley, the US has 203 unicorns while China has 206 startups valued at $1 billion or above. In contrast, India has only 20 unicorns.