Startup20 Policy Communique Unveiled at G20 Startup20 Shikhar Summit

The highly anticipated Startup20 Final Policy Communique was released today at the G20 Startup20 Shikhar Summit in Gurugram. The two-day summit, organized by the Startup20 Engagement Group, is currently underway in Gurugram, Haryana.

Mr. Chintan Vaishnav, Chairman of Startup20, officially unveiled the Communique with the aim of laying the foundation for a transformative and inclusive startup ecosystem that fosters economic growth, innovation, and cross-border collaboration.

In his welcoming address to the delegates and attendees at the Startup20 Shikhar Summit, Dr. Vaishnav spoke about the journey of Startup20 from its inception to reaching new heights at the Shikhar Summit. He emphasized that the Startup20 Communique outlines the agenda for the startup ecosystem for the next ten years.

Releasing the document, Dr Chintan said the Startp20 is not a movement of the elite. It is a movement of the innovators and of the people who move from zero to one. 

The Startup20 Engagement Group, operating under the India G20 Presidency, has set its sights on shaping the future of the global startup ecosystem.

During his speech at the Summit, G20 Sherpa Amitabh Kant highlighted Prime Minister Narendra Modi's vision for India's G20 Presidency to be decisive and action-oriented. He shared some impressive statistics, stating that India witnesses the birth of 80 startups every day and is home to 108 Unicorns. He also noted that the number of incubators in the country has increased ninefold. Kant expressed optimism, proclaiming that there will always be spring for good startups and that the world is abundant with funds for startups, but there is a shortage of well-structured projects.

Former NITI Aayog Chief said that the government should become the first buyer of startups. Today's startups will be tomorrow's Fortune 500 company. Our belief is world will be disrupted, their will be technological transformation, there will be innovation and all will be done by startups.

Delighted to participate in the #Startup20 Engagement group meeting of #G20 and receive the Startup20 Communique. It is a progressive and forward looking document. India started this Engagement group & it has done pioneering and pathbreaking work. pic.twitter.com/RHxLf9kwSI

— Amitabh Kant (@amitabhk87) July 3, 2023

Key Highlights of the Communique

The main crux of the Communique focuses on urging G20 leaders to increase the joint annual investment of G20 nations in the global startup ecosystem to USD 1 trillion by 2030. It also calls for favourable consideration of recommendations, policy directives, and actions in five areas aimed at harmonizing the global startup ecosystem while respecting the autonomy of national ecosystems. 

The Communique proposes the establishment of a networked institution comprising existing nodal agencies from G20 nations to implement these recommendations. Additionally, it emphasizes the importance of measuring the effectiveness of Startup20 in identifying promising startups globally, facilitating collaborative funding, providing contextual mentorship, and enabling global scalability. Finally, it advocates for the continuity of this group in future G20 presidencies.

A Strong Foundation: Defining and Strengthening Startup Ecosystems

To establish a strong foundation, the Policy Communique recommends the creation and adoption of a global definition framework for startups across G20 nations. This framework aims to foster consistency in understanding and evaluating startup ecosystems and encourages multilateral organizations, research institutions, and other stakeholders to adopt this framework. The directive also seeks to align existing definitions with the global framework and ensure future alignment with the evolving government and private sectors.

Furthermore, the Communique suggests creating and adopting a policy framework that strengthens startup ecosystems within and across G20 nations. It calls on G20 nations to formulate their respective national startup policies and learn from the best practices of other member nations to enhance existing policies. Additionally, it promotes policies that facilitate and encourage startup-centric global trade and investment.

Promoting Alliances and Unlocking Startup Finance

Recognizing the importance of alliances for scaling businesses in domestic and international markets, the Communique acknowledges that international trade negotiations often overlook startups as a distinct category. To address this challenge, the Communique proposes several policy recommendations. These include establishing effective channels between startup ecosystems across G20 nations, building market access mechanisms for startups, creating mechanisms to access and empower entrepreneurial talent, and encouraging collaboration between startups and key industries/sectors that can be revolutionized through startup innovations.

The Communique also highlights the significance of a sound and accessible global financing system for startups to succeed and scale. While total investment in the global startup ecosystem has increased over the years, the Communique acknowledges that some nations still lack sufficient investment, leading to a high mortality rate for startups. To address this, the Communique recommends committing to raising the joint annual investment of G20 nations in the global startup ecosystem to $1 trillion by 2030. It also encourages the provision of a favorable policy environment for startups and stakeholders and the facilitation of cross-border flow of capital among G20 nations.

The Policy Communique emphasizes the need for a tailored approach that considers the unique challenges and requirements of each startup. It sets forth a comprehensive agenda to foster a vibrant and inclusive global startup ecosystem, and it is expected that these recommendations will be taken into serious consideration by G20 leaders and stakeholders in the years to come.

The full document can be viewed at : 64a174f12d4f8e4d8e313c65_Startup20_Communique_2023_India.pdf (webflow.com)