Was the funding less or the interest less? WSJ reported fall of 25% investment in startup in the first quarter.

Recent news has started showing off the investment ratio in startups is declining. As reported by Wall Street Journal, the investment reduced by 25%. The startup bubble scenario again came into the picture. Too many ideas and too many companies. But not all of them survive. A few big startups failed recently. One among them was Backplane, a startup backed by Lady Gaga.

The startup successfully received an overall funding of $18.9 million but failed. More news like this can hustle investor’s decisions into investment. The falling in investment can also cripple new startups that are about to pitch themselves. Now investors would have some strong list of requirements, in which a startup has to prove itself. The rising competition and the failing companies are contributing to the mindset.

In India, still a lot of startups can flourish. Thanks to Startup India Campaign. It was initiated by the Modi government. The campaign was initiated to promote Startup firms and develop the nation as a whole thereby and promote employment growth. The Startup India Campaign was also aimed at promoting Entrepreneurship among SCs/STs & Women communities.

The Startup India Campaign is also set up to look forward towards development, innovation, deployment, commercialization of new products, processes and services driven mainly by technology firms.  The Startup India Campaign also stated that each firm started will be considered as a Startup upto the first five years if its overall turnover does not exceed Rs.25 crores.

Below are few important points framed by the government? This are framed and initialized by keeping in the progress of each startup.

Exempted from paying taxes for the first 3 years

• Tax relief will be on Capital gains
• 10,000 crore to fund startups
• Startups can start w.r.t. setting up their firms at a faster rate as they can self-certify themselves.
• No inspection will be there for the first 3 years.
• No turnover and experience criteria for startups bidding for government contracts.
• Startups will be able to register themselves online and through an app.
• 90 days for Startups to close businesses.
• Patent registration costs will be cut upto 80%.
• Credit guarantee scheme can be devised.

Takeaways:

• Venture Capital investors are now taking slow steps when it comes to investment in startups.
• After dot com bubble, a few numbers of failures can cripple the startup environment as well.