Post-budget 2018 Reaction Mr. Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

Angel investors form a crucial part in helping early stage startups grow and reach a critical scale to raise venture capital funds. For a long time, the demand from angel investors like us has been to abolish the angel tax. The voices from the industry bodies and stalwarts individuals reached a crescendo as the countdown to the Budget began. A large section of angel investors were hoping for a significant announcement on this front but the FM has still kept us in suspense. No clarity on removal of angel tax is likely to impact angel funding ecosystem as last year, while we saw deal activity registering an increase, share of angel investments have gone down which means newly launched startups are finding it difficult to raise seed funding. This is likely to have a ripple effect because if new startups won’t get launched, job generation from sector will also take a hit. The Budget overall has done a good job for rural and agri sector but left VCs and angel asking for more.

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