Securing series C and beyond funding is a challenge for start-ups, information technology veteran and Infosys Co-Founder Kris Gopalakrishnan said as he called for a simple, orderly and fast-track mechanism to shut failed businesses.

The start-ups scenario in India is pretty good but when those firms go for series C and beyond funding, there are some challenges, the co-founder and former CEO of Infosys said.

“But at the seed stage or series A (funding), there is still money available; good ideas will get funded and there are lot of opportunities for innovation and new startups in the area of financial services, healthcare, niche retail and deeper technologies, converting research into new products and new businesses,” Gopalakrishnan told.

“So, there are significant opportunities still (to tap in the start-up space). India is a country of large number of challenges and problems which means that there are significant opportunities for start-ups to emerge (to address them),” the former President of Confederation of Indian Industry said.

At the series C and above funding space, India needs a mechanism for exits, consolidation, mergers and acquisitions to happen.

“So, that’s starting to happen. That’s a good sign,” said Gopalakrishnan, who served as one of the co-chairs of the World Economic Forum in January 2014.

“It’s still very difficult to close down a business; many businesses will fail and you need to have an orderly mechanism, simple, fast-track mechanism to close down a business,” said the Chairman of Axilor Ventures, an early stage startup accelerator and venture fund.

Source: Hindustan Times