09/10/2020
What contributes to Bangalore Startup Ecosystem's success? - Part 1With the number of businesses and firms in Bangalore increasing exponentially, it is no wonder that it has earned the title “The Silicon Valley of India”. The number of registered startups in Bangalore was around 7500 till 1200 were just added in 2018. They are growing daily in strength and it doesn’t seem to stop anytime soon.Bangalore, the pensioners’ paradise of India, has turned into the technology capital of the country, as it remains in the forefront of tech-driven innovation, with the city possessing all the ingredients in terms of people, infrastructure, and know-how to keep this a pulsating as well as a vibrant destination for the startup ecosystem today.
Bangalore is at the 26th spot in the list by ‘The Global Startup Ecosystem Report 2020’ by Startup Genome. To understand the catalyst behind Bangalore’s success, we first look into the India policy which supports startups nationwide.
As per a survey report by Innoven Capital (survey of 140 founders); leading factors that make India appealing as a startup nation are: Cost of doing business, Proximity to customers/vendors and Size of domestic market. To be specific, 7 million college graduates per year; 55% of the youth prefer working in startups over corporates (as per a youth of the nation survey of 150K young Indians). Median age of founders: 31 years. Besides, India is the second largest consumer internet market in the world (overtaking China) with 462 mn internet users, 80% of these users are mobile based.
It is necessary to mention about Enablers of Startup Ecosystem including Infrastructure, Funding and Corporate Connect. In terms of Infrastructure, there are 280+ Incubators/Accelerators /Co-Working Space with 40% YoY growth and 45% of them located in Delhi, Mumbai and Bangalore. For Funding, Angel investments are on the rise, with a 20% increase in the active investors. Global investors such as Alibaba Group, Soft bank, Sequoia and Foxconn have started to invest in the Indian startup ecosystem. About Corporate Connect, Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/investing in them. As per KPMG 2016 CEO Survey; 37% of CEOs surveyed deem their organisations to be highly capable of connecting in a beneficial way with start-ups.
India Government took a range of policies and initiatives to promote a robust startup ecosystem which has significantly affected success factors of Bangalore startup ecosystem.
* India Startup Ecosystem Report 06112017 by NASSCOM
One of Schemes for startups is to provide them with DPIIT Recognition. Under this Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. States are aligning with Central Government’s Startup India mission and formulating dedicated state level Startup polices that bring synergy for the whole India startup ecosystem.
Another initiative is Startup India National Portal which is intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT).
For the 1st part of this article, please visit: http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=278
References:
1. https://www.startupindia.gov.in/content/sih/en/about-startup-india-initiative.html
2. https://medium.com/@weareoutofbox/the-startup-ecosystem-in-bangalore-ab079c202c74
3. https://medium.com/@ankitchamoli10/indian-startup-ecosystem-2020-fc16f120ccbf
4. https://fi.co/insight/bangalore-is-a-fast-growing-startup-ecosystem-here-is-a-list-of-all-the-local-resources
5. https://www.neusourcestartup.com/startupindia/dpiit-registration-process
With the number of businesses and firms in Bangalore increasing exponentially, it is no wonder that it has earned the title “The Silicon Valley of India”. The number of registered startups in Bangalore was around 7500 till 1200 were just added in 2018. They are growing daily in strength and it doesn’t seem to stop anytime soon.
Bangalore, the pensioners’ paradise of India, has turned into the technology capital of the country, as it remains in the forefront of tech-driven innovation, with the city possessing all the ingredients in terms of people, infrastructure, and know-how to keep this a pulsating as well as a vibrant destination for the startup ecosystem today.
Bangalore is at the 26th spot in the list by ‘The Global Startup Ecosystem Report 2020’ by Startup Genome. To understand the catalyst behind Bangalore’s success, we first look into the India policy which supports startups nationwide.
As per a survey report by Innoven Capital (survey of 140 founders); leading factors that make India appealing as a startup nation are: Cost of doing business, Proximity to customers/vendors and Size of domestic market. To be specific, 7 million college graduates per year; 55% of the youth prefer working in startups over corporates (as per a youth of the nation survey of 150K young Indians). Median age of founders: 31 years. Besides, India is the second largest consumer internet market in the world (overtaking China) with 462 mn internet users, 80% of these users are mobile based.
It is necessary to mention about Enablers of Startup Ecosystem including Infrastructure, Funding and Corporate Connect. In terms of
Infrastructure, there are 280+ Incubators/Accelerators /Co-Working Space with 40% YoY growth and 45% of them located in Delhi, Mumbai and Bangalore. For
Funding, Angel investments are on the rise, with a 20% increase in the active investors. Global investors such as Alibaba Group, Soft bank, Sequoia and Foxconn have started to invest in the Indian startup ecosystem. About
Corporate Connect, Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/investing in them. As per KPMG 2016 CEO Survey; 37% of CEOs surveyed deem their organisations to be highly capable of connecting in a beneficial way with start-ups.
India Government took a range of policies and initiatives to promote a robust startup ecosystem which has significantly affected success factors of Bangalore startup ecosystem.
*
India Startup Ecosystem Report 06112017 by NASSCOM
One of Schemes for startups is to provide them with DPIIT Recognition. Under this Scheme, eligible companies can get recognized as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. States are aligning with Central Government’s Startup India mission and formulating dedicated state level Startup polices that bring synergy for the whole India startup ecosystem.
Another initiative is Startup India National Portal which is intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT).
For the 1st part of this article, please visit:
http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=278
References:
1. https://www.startupindia.gov.in/content/sih/en/about-startup-india-initiative.html
2. https://medium.com/@weareoutofbox/the-startup-ecosystem-in-bangalore-ab079c202c74
3. https://medium.com/@ankitchamoli10/indian-startup-ecosystem-2020-fc16f120ccbf
4. https://fi.co/insight/bangalore-is-a-fast-growing-startup-ecosystem-here-is-a-list-of-all-the-local-resources
5. https://www.neusourcestartup.com/startupindia/dpiit-registration-process