Startups Growth Saga

The number of start-ups is growing day by day particularly in the area of technology. We have large number of new, dynamic and innovative start-up professionals and likewise we have move forward towards start-ups in India which is the third largest base of technology start-ups in the world. In last one year the number of start-ups in India has grown manifold and this will grow with more pace in near future. Bangalore, NCR and Mumbai continue to be the top start-up destinations with nearly 65% of the total Indian start-ups. Further, Hyderabad, Chennai, Pune, Jaipur and Ahmedabad are the major upcoming start-up locations. B2C focused start-ups, NCR witnesses the maximum amount of funding. E-Commerce start-ups and aggregators continue to witness maximum share of the investment.

 

The new system developed by the start-ups are affecting to each and every individual and this is quite evident be it any sphere of life across the domain like eatables, supply chain, pharmaceuticals, energy and education etc. The start-ups have been successful in making the new things simple, user friendly and attractive. Successful Indian entrepreneurs are investing time and money on young start-ups. Business tycoons such as Ratan Tata, Azim Premji have already started investing in start-ups. Over 10 investments in Start-ups made by Mr. Tata till date. 18 new colleges in Tamil Nadu expected to have incubation centres by 2015. More Corporates are Moving to Accelerator Market.

week 13 - Growth

To keep the system effective and growing there is a need of better transparent regulatory and financial system. The Indian Start-ups has grown to next level and the state governments are also trying to attract the start-ups by further substantiating with the number of initiatives. Prime minister announced integrated platform to promote and boost entrepreneurship in the country. Government policies and initiatives are aimed towards improving the overall start-up ecosystem. Industry expects more support and focus on improving ease of doing business and facilitating exit opportunities. Atal Innovation Mission: Established a platform to promote culture of innovation and R&D and earmarked INR 150 Cr in 2015 Union Budget. To boost start-up ecosystem, launched IAF (India Aspiration Fund) with initial corpus of INR 2,000 Cr to finance and promote MSME sector. Improving Ease of Starting a Business to create Ebiz portal for reducing approvals required to start a business and to complete tax registration in 2 days. SEBI has plans to setup an alternative trading platform for

internet start-ups with relaxed listing requirements.

 

The start-ups are not only demanding but they are contributing towards the development of Indian economy also. The start-ups are strengthening our SME sector and creating huge opportunity for the young skilled/unskilled people of India. Start-ups are providing a great work culture along with attractive monetary benefits to lure new and existing talents. However, Government can further boost the ecosystem by Formulating start-up policy for India to promote overall start-up growth and foster an environment of entrepreneurship. Develop infrastructure across cities for better connectivity, transportation and basic amenities to spur business growth. Lay out rules on exit options for entrepreneurs as well as investors to boost cross border M&As. Focus on easing regulatory norms for starting and operating a business in the country along with sector specific regulations. Provide subsidies, funds and other incentives to start-ups in areas such as product development and market access. Rationalize taxes related to start-up investments such as angel-tax, differences between investments in listed & unlisted shares and mobilize domestic investors.

 

Investors look for sound team, idea and business model before investing in start-ups:

Team

  1. Founders- Education and experience, Number of founders and their relationship with each other and Mix of technical and business oriented founders
  2. Complete Team- Product capabilities of the team and Educational background and experience
  3. Future Prospects- Retention rate and measures to improve the same and Hiring plans

Idea

  1. Objective- Should focus on solving a customer pain point
  2. Clarity- Should have clear understanding of the idea and its execution
  3. Innovation- Getting first mover advantage through innovative idea
  4. Vision- Long term plan of expanding the idea implementation

 

Business Model

  1. Customers- Number of customer base with the focus on paid customers
  2. Revenue Model- Sound business model to generate revenue and profits
  3. Market Potential- The idea should provide large business opportunity

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