Stanford's Rafiq Dossani and TiE-SV's Asawari Desai have published a research report titled "Accessing Early-Stage Risk Capital in India"
that aims to identify causes and recommend improvements for the lack of funding for innovative startups.
While the authors are well intended, I don't like the idea of getting more government financing - whether directly or indirectly - into risk capital. Instead, I would prefer entrepreneurial and market-led initiatives like Seed Fund, Mentor Partners and Angel Investors (like Nadathur Holdings and Band of Angels) to succeed in filling the gap.
Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.