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by System Administrator - Sunday, 8 October 2017, 11:25 PM

By : M.S.Yatnatti Editor and Video Journalist Bengaluru : Underscoring the need to boost the start-up ecosystem, the Reserve Bank reportedlysaid it will simplify rules and regulations which impede their growth and ensure that an entrepreneur does not have to run from "pillar to post" to start a business. The Reserve Bank has created a dedicated mailbox( to provide assistance and guidance to the start-up sector. Electronic reporting of investment and subsequent transactions will be made on e-Biz platform only. Submission of physical forms will be discontinued with effect from February 8, 2016. RBI said the aim was to enable start-ups, irrespective of the sector, to receive foreign VC investment and also enable transfer of shares from foreign VC investors to other residents or non-residents. But still lot of simplification is needed to be done as start ups are rich in ideas but poor in finance by the time they complete the RBI Procedures they will be dead .

Reportedly The RBI relaxed foreign investment norms in financial services firms, startups and in investments by foreign regulated capital investors. When it comes to financing startups, the RBI has said that foreign venture capital investors (FVCIs) registered with Sebi can invest in equity or equity-linked instruments or debt instruments issued by an Indian `startup' irrespective of the sector in which the startup is engaged. According to the RBI, a startup will mean an entity (private limited company or a registered partnership firm or a limited liability partnership) incorporated or registered in India not prior to five years, with an annual turnover not exceeding Rs 25 crore in any preceding financial year.

With a view to boosting innovation and promoting job creation, the Reserve Bank on recentlysaid start-ups can raise external commercial borrowings (ECBs) of up to 3 million in a financial year.They will be permitted raise the overseas funds in rupees as well as in foreign currency .India has the third-largest number of start-ups globally. In January, Prime Minister Narendra Modi had unveiled a slew of incentives for them including tax holiday, inspector raj-free regime, capital gains tax exemption and Rs 10,000 crore corpus to provide funds. Government has also relaxed procurement norms for them.Statement on developmental and regulatory policies announced by RBI said start-ups have the potential to play a significant role in economic growth and job creation by spurring innovation and injecting competition."Taking into account the available funding channels from overseas for start-ups, the RBI, in consultation with the Government of India, will allow such entities to raise ECB up to USD 3 million or equivalent per financial year either in INR or in any convertible foreign currency or a combination of both," it said.It will issue guidelines in this regard by month-end. A National Credit Guarantee Trust Company is being envisaged with a budgetary allocation of Rs 500 crore per year for the next four years.Information technology is one of the most important mass employers in the country today providing significant valueaddition and employment creation. IT major Infosys has reportedly increased the salary of its top executives but the base scale for entry-level software engineers has not changed for more than five years. The company started its higher salaries' package toCEO Vishal Sikka who will get Rs 30 crore ($5.08 mn) annual pay package when compared to $23,000 (Rs 14 lakh) taken by his predecessor S D Shibulal.Infosys pays around Rs 23-27,000 for entry-level software engineers with BE and Rs 12-15,000 for entry-level BSc freshers, according to sources. According to experts, starting salaries offered by other IT companies are in the same range.

Be different startup .Find unsolved problems of customers and solve it, everybody has problems. Many have many problems .Few problems are universal. Few problems are local few are national and few are international .Find unsolved problems. Companies succeed because they solve and understand the unsolved problem and come up with solutions that are very different from what others do. Put yourself in the customer's position; perhaps you would have experienced a pain point yourself. You may not fully understand the difficulty unless you experience it yourself .Develop deep customer insights. Secret of your success is in Passion, determination, vision, agility, team play, fund-raising skills.What exactly defines the DNA of a booming startup? What do some of the biggest names in the investment community look for in startups and entrepreneurs Clarity of vision Domain expertise? What key factors do successful entrepreneurs attribute to their triumph? Need to be understood diligently.Many venture capitalist look for startups addressing larger customer base scaling up large, interesting markets. It's important not only that startups succeed, but that the the co sequences of that success are large. Startup investment is based on the premise that you the premise that you can make hundred times your money, and that's not possible if the markets are small. Venture funds look for really good entrepreneurs, those who can be agile. Since venture fundsfocus on startups doing things that have generally not been done before, it's really important that entrepreneurs are agile; they can change plans rapidly, come up with new ideas, zig and zag wherever the road leads to. Some people are too traditional and they only do what they have done before, and those don't make good. venture fundslook for really good technologists and at technical breakthroughs.( venture fundslook at) those that cause disruption and give the startup an advantage. I see too many people in the investment world chase what is successful. If Amazon is successful, you will have a lot of people trying to chase ecommerce. I found not enough people were doing startups for the bottom 3 billion people on the planet. I understand why people don't do it; it's because the bottom 3 billion people don't have much money.But I thought that was an opportunity because there is not much competition there, and it also makes venture fundsfeel better. It's a personal indulgence. When you look at the bottom 3 billion people, almost everything is a problem.Determination and Perseverance: That's the main trait of top founders of successful ventures have in common. Airbnb launched something like five times before taking off, and at one point, the founders had maxed out at leastcredit cards and were selling collectible cereal boxes to stay afloat. Adora Cheung, founder of Homejoy , pivoted through 13 ideas before hitting the right one; she even slept in her car for a while. Just last year Homejoy raised over $38 million. Their key is to be a cockroach ­to keep going no matter what. Keep your burn low, talk to users, and just keep building. Intelligence Leadership .Create a startup and be your own boss .Let it be small or big be your own boss .A small seed can become big tree .You have to have passion commitment and good idea good networking skills .A start up need to have a well documented business plan investment strategy and including exit options to angel investors in the start itself as later problem should not crop up with founders.