The Startup Journey

In the recent Union 2012 budget, the government (GOI) announced that an investment by an individual into an Indian company would be treated as income from other sources, taxed at the rate of 30% on the difference between fair market value and the premium being paid, with the assessing tax officer being the arbiter! This regressive measure led to a hue and cry being raised with the Government agreeing to take a relook at this issue. But what of the many thousands of crores that are allocated for entrepreneurship with no discernable impact? No hue and cry? The budget also announced the setting up of a Rs 5000 crore India Opportunities Venture Fund to help micro, small and medium enterprises. In addition, the GOI extended by 5 years weighted deduction of 200 per cent on R&D expenditure as well as introduced weighted deduction of 150 per cent on expenditure related to skill development of employees. 40% of India’s exports and 45% of India’s manufacturing output is contributed to by t...

At the beginning of the last decade of the last century when the internet started permeating the consciousness of the educated middle class Indian, launching ventures by copying successful American business models seemed de rigueur. I remember seeing a hoarding in Bangalore, from that time, put up by the Indian version of eBay. The hoarding read “Wondering what to do with the Elvis records in your attic?” or something to that effect. I don’t know how many Indians rushed to find Elvis records but am sure many more would’ve rushed to figure out what an attic was, and if they knew, then rushed to locate it in their house and if they indeed kept their records there! Of course, how many would’ve responded to Elvis and records is another matter as well. Recently, a month or so ago, I was part of an evaluation team at a startup event. One of the teams presented their idea of setting up a web-site for people to lend and borrow common every day items that one uses occasionally and therefore do...