Bangalore: Startup organizations throughout the world who were sitting with folded hands waiting for some kind of investment to come their way found a breather in the U.S. government when White house granted a $2 Billion fund for Startups.

White house has made it clear that they are in full support of the young entrepreneurs coming out of colleges and universities by declaring a fund amount of $2 billion that would be distributed among more than 100,000 startup organizations. This funding will be granted for not only the innovation and product based companies but also for the legal consultancy and software consultancy firms. This would be alongside a $1Billion Early Stage Innovation Fund launched by the U.S. Small Business Administration (SBA).

 “Today, we’re announcing $2 billion in public and private resources to help entrepreneurs start and grow their businesses.  Now it’s time for Congress to do its part.  It was encouraging to see members of both parties in the House come together to pass legislation that will help small businesses get ahead, and I’m calling on the Senate to do the same.  But America’s small businesses can’t wait for these important tools to grow and hire faster”, said President Obama. The statement created a stir in the society of entrepreneurs.

 If we look back a year or two, there was an apparent seeding fund crunch in the market. As there were a lot of entrepreneurs coming up with new and innovative ideas but there weren’t many investors. The companies which were ready to invest were not doing so because of the high chances of risk. As mentioned in the CNet article “VC: there’s no series A crunch, there’s a ‘seed glut,”, this was happening because most of the ideas that the startup organizations were coming up with were service based and to make a turn-over prediction on such an investment was highly optimistic. Another factor that turned off many investors was that there were too many brains working on the same idea which created a lot of mental clash within the business founders. Having a lot of business founders also directed towards lower share in profit.

Now, with the bold declaration made by the white house on funding the startup organizations with the seeding money, most of the entrepreneurs who were loosing hope will stride back to the track. What would be great news for the young entrepreneurs is another declaration made by the U.S. government to invest above $200 million on the Big Data project, and this time the Big Data is really big.

The top federal agencies like Department of Defense, National Institutes of Health and DARPA join hands with the UC Berkley to develop several sophisticated machinery and data centers. Some of the projects which are in discussion are self automated robots that make use of artificial intelligence, highly efficient code-breakers, Human bio-informatics data centers, machines that would predict earthquakes and other natural calamities etc. Now, where do the startup organizations come in this? Since, the development blueprint seems to be huge and highly complicated; the federal agencies are expected to outsource the designing and development of components and services to various engineering firms. This gives a great opportunity to the startup organization to show what it is worth. Google Venture, which is an investment arm of Google, has shown interest in investing more than $1 billion on companies which are linked with the Big Data Projects.

What started with a policy to increase job opportunities has become a huge economical drive in the society of startup organizations and young entrepreneurs. It seems to be a great start to the financial year for investors as well as innovators.