IDFC First Bank CEO V Vaidyanathan calls for expanding capital sources for India's startup ecosystem, noting that only about 40–50 out of every 1,000 startup pitches receive VC funding and many viable ventures remain unfunded.

At the ET Startup Awards, he reiterates that a VC’s admission of a roughly 40–50 in 1,000 pitch-to-funding conversion underscores the need to broaden the available capital pool.

He argues the current low funding rate is a barrier to turning viable ideas into funded startups and urges widening access to capital.

He adds that unlocking more funding is essential to unleash disruption, especially from campuses and from India’s tier-2 and tier-3 cities.

The remarks at the ET Startup Awards center on expanding funding opportunities as a catalyst for disruption in India’s startup scene.

He notes the government’s role in improving India’s global image over the past decade and says IDFC First Bank is building a technology stack to support startups.

IDFC First Bank is actively developing a technology stack to back startups, part of broader efforts to bolster the ecosystem.

The remarks acknowledge the government’s contribution to boosting India's startup-friendly image and entrepreneurship climate in recent years.

He emphasizes the worrying funding gap and calls for greater access to capital to sustain innovation across campuses and smaller cities.

Vaidyanathan proposes bringing in non-traditional investors, such as not-for-profit colleges, to invest in venture capital funds to widen the capital base.

He suggests permitting new capital entrants, including Section 8 colleges with not-for-profit status, to invest in VC funds to broaden startup financing.