“It will also play an essential role in highlighting the sector-specific challenges faced by the portfolio companies of VC firms,” ​​IAMAI said in a release.
The committee will be a bipartisan group consisting of about half the members of the Indian VC community. Sequoia India, softbankMultiple Alternative Asset Management, Indian Angel Network, 3one4 Capital, Eximius and other domestic and international venture funds have joined the committee as members.
Vikas Agnihotri, Operating Partner, SoftBank Investment Advisors, will chair the committee and Shweta Rajpal Kohli, Chief Public Policy Officer, Sequoia India and South East Asia, will be the co-chair.
In the past decade, India’s startup ecosystem has undergone a significant transformation. According to the National Investment Promotion and Facilitation Agency (Invest India), the country has the third largest startup ecosystem in the world with 69,000 start-ups, of which 100 are unicorns.
“A significant catalyst for this transformation is the increasing influx of VC and private equity funding. Indian Startups, According to the IVCA-EY PE/VC Agenda India Trend Book 2022, private equity and VC funds invested $77.1 billion in Indian companies in 2021 – a 62% increase over the previous year.
Find stories that interest you
According to the committee, the increasing support from VC firms to Indian startups has made it imperative to highlight the issues faced by these firms in appropriate forums, which the committee seeks to achieve.
“The formation of this committee is an important step towards taking forward the government’s vision of transforming India into an attractive investment destination for VC and PE firms and building a world-class startup ecosystem. Kohli from Sequoia said, “We look forward to working with stakeholders to make good corporate governance a key priority for the sector.
Some of the issues raised by the committee include foreign direct listing of Indian startups, clarification on gift tax, taxation on ESOPs, angel fund structure and GIFT City rules.
“We will work with all stakeholders in building a robust and transparent framework for investors who are betting on India’s rapidly growing digital GDP. Agnihotri of SoftBank said, VC and PE firms are supporting high-velocity companies in job creation, capex spending and revealing overall market buoyancy.