Startup Ecosystems in India and role of Headstart
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What is India's startup Ecosystem, how do we fare against the world and how Headstart can improve startup ecosystems. Made this presentation to Headstart volunteers in 22 cities across India.
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Startup Ecosystems in India and role of Headstart
- 2. Why Startups Fail? 21% fail due to Team, Personal withdrawals 18% fail due to Funds/Money 61% due to lack of leverage - Created something no one wants - Out competed/Poor strategy/marketing - Did not Pivot - Constraints: Location/Legal
- 3. What is Startup Ecosystem? People Support Mechanisms Funding & Finance Education & Training Government Culture Markets Startups
- 4. How far have we come... 2012 (Rank 19th) ● 74% less funding than SV ● Startups are 51% less likely to tackle $10B+ market ● Subscription models are 59% less likely to be used ● Low rate of Technology adoption (Very few using Ruby/Python) 2018 (Rank 15th) ● Funding has significantly improved ● More startups are reaching global markets ● Subscription model is getting popular ● Relatively improved adoption of technology
- 5. Evaluation Criteria - 2012 ● Startup Output Index 17th ● Funding Index 18th ● Company Performance Index 17th ● Talent Index 18th ● Support Index 15th ● Mindset Index 10th ● Trendsetter Index 20th ● Differentiation from SV Index 10th
- 6. Evaluation Criteria - 2018 ● Founder Mindset ○ Entrepreneur mindset 12% vs 20% ○ Builder mindset 18% vs 32% ● Founder DNA ○ High Ambition 17% vs 21% ○ World changing 38% vs 41% ○ Subsector Experience 28% vs 34% ● Founder Knowhow ○ Theory 5.2 vs 5.1 ○ Practical 4.8 vs 4.8 ● Local Connectedness ○ Sense of community 4.6 vs 4.9 ○ Relation b/w founders 18.4 vs 20.15 ○ Collisions 3.4 versus 4.9 ● Ecosystem Demographics ○ Metro GDP $45B vs $267B ○ Metro Population 8.7M
- 7. Success Factors FOUNDER ● Mindset and Ambition ● DNA ● Know-how ● Strategy TALENT ● Access ● Quality ● Costs STARTUP EXPERIENCE ● Giving Equity to Advisors ● Experience with Unicorns ● Exit Experience FUNDING ● Early Stage funding per startup ● Early stage capital ● Experienced VC Firms
- 8. Success Factors LOCAL CONNECTEDNESS ● Sense of community ● Local relationships ● Collisions ● Density ORGANIZATIONS ● Quantity and quality of events GLOBAL CONNECTEDNESS ● Global Reach ● Immigrant founders ● Offices in other countries
- 10. Trends
- 11. Trends
- 12. India (Only Bengaluru) On World Map Artificial Intelligence Blockchain Advanced Manufacturing & Robotics Agtech Fintech Health and Life Sciences Cybersecurity Cleantech Edtech Gaming Adtech Consumer Electronics
- 13. Insights ● Build a Sense of Community ● Connect. Connect. Connect. ○ Locally ○ Other Ecosystems ○ Internationally ● Fill relationship gaps ● Focus on vertical strengths and identify local hubs ● Build connections with Existing Industries, Adjacent industries ● Bring Corporates and Students to startups ● Stronger technology education
- 14. Thanks
- 15. Ease of doing business
- 16. Criteria for Ease of Doing Business 1. Starting a business 2. Dealing with Construction Permits 3. Getting Electricity 4. Registering property 5. Getting Credit 6. Protecting Investors 7. Paying taxes 8. Trading across borders 9. Enforcing contracts 10. Resolving insolvency Measurements ● Distance to frontier ● Number of new business ● Good practices ● Transparency/Regulation