Venture funds need to go beyond e-commerce startups: Union Minister Jayant Sinha

MUMBAI: Pitching for greater flow of funds into start-ups in areas like biotechnology, solar power and manufacturing, Union Minister Jayant Sinha today said most of the venture money is currently going into e-commerce business.

"Most of the venture money is coming into e-commerce sector, but not in sectors like manufacturing, biotech and solar which can solve India's problems. We need foreign funds in these sectors," Minister of State for Finance Jayant Sinha said here.

Speaking at the launch of SIDBI's Fund of Funds for start-ups, Sinha said a lot of foreign funds are coming in the venture capital space in the country.

"About 90-95 per cent of venture capital funds primarily come from outside India. We also need a domestic system which can fund start-ups. China also had same problem, but it is doing a good job at it now.

"We need to strive for that. We've to work on India-specific issues. Though there is capital, we are not getting the capital to solve India's problems," he said.