Of startups, black money and an open letter to PM Modi

Indian Startups

Of startups, black money and an open letter to PM Modi

The unforeseen and instant decision by the govt to demonetise Rs 500 and Rs 1000 notes has sent all the illegal money holders into a tizzy.black-rupee-money

All these unaccountable money holders want to convert their black money into white, but they fear being penalized by the income tax department.

And the country wants white money for a stronger economy.

What’s up with startups

The country’s startup economy is not in a good shape. Investor funding has dried down, resulting in shutdown of many companies, which is not a positive sign for the country.

More startups mean more job creation and a flourishing economy.

But suddenly. a lot of mamas and chachas are turning angel investors and are willing to put in their (black) money in startups.

So, here’s a proposal to the Prime Minister.

  1. Allow black money holders to invest in startups with the same timeline, before the end of December.
  1. Ask them to pay regular Tax + Penalty waived off. A portion of that money, a minimum fixed percentage (Government can decide that) will be considered as equity, and the rest can be considered as debt investment without interest.
  1. This investment should be applicable only to existing startups otherwise black money holders will create fake startups to use the scheme as a loophole.

How will it help startups?

Startups get funding, and because a percentage of it is considered equity and the rest is debt, they will be forced to return the investment after a specific time. So they are forced to make profits as well.

How will it help the Government?

Govt will get  white money + their tax, instead of just a penalty.

This is a smart way to attract more investor money in the startup ecosystem, which translates into more jobs.

Instead of destructing black money, let’s use them for good & positive cause for country!

If you are a startup, and if you think this is a win-win situation for everyone, help spread the word by tweeting #BlackToWhiteForStartupIndia

If you have black money and this excites you, please share.

Comments (2)

  1. Though I liked the idea that the black money should be used in more constructive way rather than burning into ashes, but putting this money in Startup itself will create turbulance and increase corruption in way that these people will start their own startups and fund it and then will show loss.They will put their Sons/daughters and dear ones as CXOs and raise huge salaries and will show gigantic expenses. If we can identify startups in which money can be poured then it will make sense. Second concern is, who will be the governing authority to oversee the whole process.

  2. Although I agree that start ups need all support they can get. I don’t agree with this solution . There was an amnesty announced with clear indication of repercussions if the same was not used to come clean. For those who still didn’t come clean.. they need to face the music

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