Startup group of G20 calls for $1-trillion commitment

INTERNATIONAL DESK: The startup engagement group of G-20 nations in Goa called for a $1 trillion commitment for the startup ecosystem in member countries by 2030, a statement said on Sunday.

The other high point of the meeting was an agreement reached on the policy communique that was drafted by India as chair of the group.

The summit meeting of Startup20 Engagement Group, which is slated to happen on July 3 and 4 in Gurugram is expected to adopt the communique.

“The agreement (on policy communique) signifies the confidence of the Startup20 community in scouting startups globally, funding them collaboratively, mentoring them contextually, and scaling them internationally,” the statement said.

“The G20 nations have taken a significant stride forward in their mission to nurture and support startups, setting the stage for a vibrant and thriving global startup ecosystem,” the statement issued on the completion of two-day meeting said.

Goa meeting was the third meeting of the startup group of G20 that was proposed by India during the presidency.

“The G20 nations have taken a significant stride forward in their mission to nurture and support startups, setting the stage for a vibrant and thriving global startup ecosystem,” Chair of the Startup 20 Chintan Vaishnav said.

The first draft of the core Recommendation and Policy Directives of the Policy Communique` was made public for comments on May 23. Based on the draft and comments received the discussions were held in Goa.

The communique proposes arriving at a common framework for defining startups as the first step. With agreement reached on the framework, identification of startup becomes easy for hand holding and promotion.

The engagement group has drawn up a list of support measures that should be extended to the sector based on the reports of its five task forces on foundation, alliances, finance, inclusion and sustainability.

Once the definition framework is ready, the foundation taskforce also talks of aligning the existing definitions of member countries to the definition framework agreed to at the G-20.

The alliances taskforce recommendations include adopting key startup-specific policies, local regulations and best practices that enable startups to smoothly access markets across G20 nations and even access to government contracts.

For hand holding startups in accessing markets across G-20, the draft communique also talks of designated government or private agencies.

Under alliances, the countries are trying to ensure that there is some form of platform to promote cooperation between key stakeholders of the startup ecosystem such as incubators and regulators.

The communique also talks of policies for easy navigation of entrepreneurs across G20 nations and a platform for startups to access mentors within the G20 network.

The finance taskforce of the engagement group has called for facilitating startups’ access to public capital markets across G20 nations by enabling cross-border listings and tax concessions.

It also stresses on facilitating flow of public and private capital into the startup ecosystem by promoting various mechanisms such as fund-of-funds (FOF), corporate venture funds (CVC), and university endowment fund. Startups of the grouping should also be able to access debt and venture debt products.

Other two task forces of the startup engagement group – inclusion and sustainability. The sustainability task force’s recommendations that are part of the communique are curating a framework to identify startups focused on Sustainable Development Goals and develop a capital inflow framework for them, including patient capital and options for longer-term grant, debt or equity.

“These measures aim to foster a conducive environment that empowers startups to innovate, grow, and address global challenges effectively,” the statement added.

There are about 8,50,000 startups across the G20 countries, out of which over 98,000 recognised startups are in India. There are about 1600 unicorns in these economies and about 108 are in India. (Financial Express)