The Group of Twenty Nations (G20) is being asked to consider a proposal to divert up to 2% of the bloc’s GDP to fund startups, according to a draft communiqué from a startup engagement group on Tuesday became.
The report, which has received feedback from several stakeholders and will be discussed at the countries’ meeting in June, also proposes the provision of tax incentives and measures to ease the flow of capital between member states.
India currently holds the presidency of the bloc and is the third largest startup hub in the world after the US and China.
“More and more startups are bringing novel products and services to market every day… However, to ensure the success of such ventures, a robust and accessible global funding system is crucial,” the statement reads.
The bloc – which represents around 85% of global GDP and over 75% of world trade – will also discuss a framework intended to define startups worldwide at its June meeting, said Chintan Vaishnav, India’s chair of the G20 startup group , told reporters in New Delhi.
The recommendations come at a time when startups are grappling with a funding crisis that has been exacerbated by high global interest rates and inflation.
The draft also proposes the development of common accounting and governance standards for start-ups in the G20 member states to facilitate the flow of capital and allow for cross-border listings.