First Bank(US:FRBA) The Economic Times·2025-11-03 00:31Core Insights - The low funding rate for new ventures in India is a significant concern, with only 40-50 out of approximately 1,000 startups receiving financing from venture capitalists, indicating a disturbing conversion rate and the likelihood of many viable ideas going unfunded [1][4]. Group 1: Funding Challenges - The current funding landscape is inadequate for the thriving startup ecosystem in India, necessitating an expansion of the capital base to support innovation and growth [2][4]. - There is a notable potential for disruption from startups emerging from campuses and tier-2 and -3 cities, highlighting the need for increased financial support [2][4]. Group 2: Recommendations for Capital Expansion - It is suggested that entities such as colleges, which are currently restricted from investing in venture capital funds due to their Section 8 (not-for-profit) status, should be allowed to invest to broaden the capital pool available for startups [3][4]. - The government has made progress in enhancing India's global image over the past decade, which could further support the startup ecosystem [3][4]. Group 3: Institutional Initiatives - IDFC First Bank is actively working on developing a technology stack aimed at catering to the needs of India's startups, indicating institutional efforts to bolster the startup ecosystem [4].