The latest Nasscom report on “Start-up India — Momentous Rise of the Indian Start-up Ecosystem” that was released on the side-lines of Nasscom Product Conclave 2015 in Bengaluru today threw up some interesting facts:
Consider these six reasons alone:
- India ranks third among Global Startup Ecosystems in the world
- Nearly $52 billion is the total funding in 2015, a growth of about 125% over 2014
- The number of active investors has grown from 220 in 2014 to 490, a growth of about 123% over 2014
- The number of incubators/ accelerators in India is at 110, a growth of nearly 40% since 2014
- The average age of start-up founder is around 28 years
- Eight out of ten top venture capitalists / private equity firms in India are foreign
The Indian technology start-ups landscape has seen a tremendous growth in the emergence of innovative start-ups and creative entrepreneurs. In terms of providing a conducive ecosystem for the start-ups to thrive, India has moved up to third position and has emerged the fastest growing base of start-ups worldwide. India is one amongst the first five largest startup communities in the world with the number of start-ups crossing 4,200, a growth of 40 per cent, by the end of 2015.
Contributing to the Economy
The maturing Indian start-up ecosystem is now contributing to the Indian economy in many ways. Apart from positively impacting the lifestyles of citizens involved, start-ups are now creating innovative technology solutions that are addressing the key social problems that India is facing and creating significant growth opportunities for every stakeholders.
With 100 per cent growth in number of private equity, venture capitalists, angel investors along with a 125 per cent growth in funding over last year, Indian start-up ecosystem has risen to the next level. The total funding in the India based start-ups is estimated to be nearly $5 billion by 2015. Various central and state government start-up initiatives are further supporting this progressive phase of start-ups in India.
Addressing Birth Pangs
The report also highlights certain ways and means to make starting-up further easy in India. Nasscom has recommended ease the rules and regulation for registration of a business in India, funding, and simplifying compliance procedures by minimizing licenses/permits/approvals/tax for start-ups. Removal of angel tax, simplifying norms for capital raising, enabling easier exit for entrepreneurs and requisite changes in the credit guarantee for loans to start-ups are few recommendations that will further enhance a smoother functioning of the start-ups in India.
Stakeholders across the ecosystem must also come together to create market access by way of guidance in regulatory requirements for project participations and specialized training for start-ups working in innovative areas. Steps must be taken to create an even more conducive environment by facilitating incubation, IPR, and innovation norms and also encourage academia-industry tie-up and collaborate to develop the right kind of talent and capabilities that will propel the growth further. Another important aspect will be to encourage and recognize these start-ups for the innovation and rapid growth by sharing their success stories on a national-level and awarding at relevant Indian and global platforms to help India build a reputation of a startup-friendly nation.
Building The Ecosystem
India is the youngest start-up nation in the world with 72% of the founders are less than 35 years old, and 50% rise in share of female entrepreneurs in 2015 over 2014. We are thankful to the Government for the policies and initiatives that are aimed towards improving the overall start-up ecosystem.
Rapid growth of Indian startups has created significant growth opportunities for every stakeholder within the ecosystem. Further, start-ups are providing an exciting work culture along with attractive financial benefits to attract new and retain existing talent. This maturing start-up ecosystem is contributing to the Indian economy in multiple ways. There is a need to regularly nurture the startup ecosystem through regulations, branding, collaboration, mentorship and funding to stay ahead of disruptive growth.
The report, which was brought out by Nasscom along with research partner Zinov, identifies the current scale and size of the startup landscape, factors that are impacting the growth of the overall ecosystem and steps that need to be taken to make the environment more conducive for start-ups. It analyzes the existing scenario and evolving trends across the various dimensions that define the Indian startup ecosystem, and measure India’s position as a global startup hub that is becoming attractive for investors, startups and corporate.
Startup Capitals Event in India!
In addition, Business Excellence Research Group – Singapore is bringing to India, “Startup Capitals” a though-leadership conference that celebrates the innovation/startup ecosystem of cities that are making a mark on the world map in Delhi (Oct 27) and Bengaluru (Oct 29). The conference series is inspired by the book with the same title written by Singapore-based author & former journalist, Zafar Anjum. It brings together all the stakeholders in a startup ecosystem, including entrepreneurs, business leaders, innovators, researchers and educational specialists, government leaders and venture capitalists, under one roof who champion innovation and who are passionate about taking their innovation ecosystem to the next level.
This uniquely curated programme offers a chance to hear and interact with the thought-leaders and entrepreneurs who are leading the change in the world and who are committed to making the world a better place. On the sidelines of the conference, the event will also showcase the chosen city’s most innovative ideas and startups.
The first edition of Startup Capitals 2015 was held in Singapore at The Pod, National Library Building, Victoria Street on May 20. Over 150 participants from Singapore and other countries such as China, India, Malaysia, Thailand and United States participated in the same.