Startup ecosystem reacts to budget positively

Digital platform for IP welcomed

The reaction to the Union Budget 2020 was largely positive in the startup ecosystem with entrepreneurs and CEOs stating that it has removed ‘speed breakers’.

Co-founder of AdOnMo, a digital out-of-home advertising startup which recently raised $3 million, Sravanth Gajula opined that proposal to provide ‘early life funding’, as mentioned in the budget speech, to early stage startups would greatly help them.

“Such seed funding and tax benefits will greatly foster the startup ecosystem as a whole. The proposal enables the transition from idea to product very swiftly, and hence boost the innovation accelerating go-to-market. As startup is a category that stands in the need of resources, be it multidisciplinary team, funding, and technology, such benefits fortify more ideas seeing the light of reality,” he said.

Chief executive officer of the WE Hub Deepthi Ravula too welcomed the move. She said that several early stage startups do not proceed to the next stage, primarily due to a lack of funding. The move, she said, would enable innovators to become entrepreneurs which is likely to lead to an increase in product-based startups. Touching upon the proposed digital platform for in the field of intellectual property rights, she said: “Creation of a digital platform for IP protection would enable more Nano MSME and startup entities to think of and apply for patents. One thing which we would need to see is the pricing and how best it will blend in or incorporate the various IP facilitation cells which function under the various central, state and industry body levels.”

Meanwhile, CEO of the T - Hub Ravi Narayan said that employee stock option plan and the proposal of deferring tax payment by five years would introduce talent and retain it for longer. “The existing online government e-marketplace should open up the government as a customer. Again this should be in the PPP model governed by an independent and professional committee.”

However, he noted that allocation of seed funds is a populist measure.

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Printable version | Feb 25, 2020 10:37:09 PM |

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