Funding for start-ups in India: what shakes it?
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 23 December 2020
Issue publication date: 12 November 2021
Abstract
Purpose
Using a novel monthly data set, this study aims to examine the factors affecting the funding of Indian start-ups.
Design/methodology/approach
Given the panel structure of the data, the fixed effects regression technique has been used.
Findings
The findings reveal that years of operation is a key factor. Amongst others, angel investors and equity financing are the key drivers of startup financing. Government policy does not appear to have gained adequate traction, although the improvement in the business reform action by state governments has begun to exert a salutary effect.
Practical implications
From a policy standpoint, the study provides insights into what policies and practices can be exploited to streamline the funding bottlenecks affecting startups in the Indian context.
Originality/value
Notwithstanding being a country with a significant presence in the startup space, there are admittedly limited studies, which examine this issue for India. Viewed from this standpoint to the best of the knowledge, the analysis is one of the early studies to shed light on the factors driving the funding of startups in the Indian context.
Keywords
Acknowledgements
The author would like to profusely thank, without implicating, two anonymous referees for the incisive comments on earlier drafts of the paper. Needless to state, the views expressed and the approach pursued in the paper are strictly personal.
Citation
Ghosh, S. (2021), "Funding for start-ups in India: what shakes it?", Journal of Entrepreneurship in Emerging Economies, Vol. 13 No. 5, pp. 1215-1234. https://doi.org/10.1108/JEEE-05-2020-0142
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited