Future of Startups in India
Startup termed as a company which is in the first stage of operations or the initial stage of business. Startups are founded by one or more than one entrepreneur who has an idea and want to develop a product or services on basis of future demand of customers. These kinds of companies usually initially starts with the high costs and with the limited revenue, for that they look for capital from various sources.
Understanding the concept of Startups
Startups focuses on a single product or service that the founder wants to come up in the market. Most of the startups turn others towards company for more funding like their family, friends, and the venture capitalists.
Example- Silicon Valley is famous for its strong venture capitalists community (VCC) and also a popular destination for startups the reason why it is called as the most demanding arena.
Startups can use seed capital to invest in research as well as develop their business plan. Market research helps to determine the demand of a product or service, where a comprehensive plan outlines the company’s mission, vision and goals as well as the marketing strategies and management. Lacking of Professional expertise as well as lacking of constructive business model and inadequate or disruptive flow of fund also becomes major hurdle for these companies to reach at next level. Most of the startup companies are initially funded by their founders.
Funding
Startups often raise funds by turning family and friends or by using venture capitalists. It is a group of investors that specialized in funding startups. Crowd funding has been become a viable way for many people to get access to the cash they need to move forward in the business process. The entrepreneurs set up a crowd funding page online, allowing people who believe in the company to donate money. Startups may use credit to commerce their operations. Having a perfect credit history may allow the startups to use a line of credit as funding. Getting investment from this option carries the maximum amount of risk; it becomes more crucial and risky when startup gets failed. The rest of the company chooses small business loans to help fuel growth. Banks typically have several specialized options available for small businesses – a microloan which means a short-term, low-interest product tailored for startups. A detailed business plain is often required in order to quality.
Growth & Future of Startups in India
India has the 3rd largest startup ecosystem in the world expected to the witness Year to year growth of a consistent annual growth of 12-15%. India has 50,000 startup in 2018; around 8,900-9,300 of these are technology led. The year 2019 is when there was 1300 new tech startups were born taking out average would come to 2-3 tech startups born every day.
The pace of growth in the startup ecosystem has increased to 15% year-on-year in 2018, while the growth in the number of incubators and accelerators has grown to 11%. The percentage of women entrepreneurs’ growth is in inclining stage at 14% comparatively 10% and 11% consecutively for the last two years. Startups in the country have been able to create an estimated value of 40,000 new jobs over the year, taking the total jobs in the startup ecosystem to 1.6-1.7 Lakh.
Bangalore has been listed amongst the world’s 20 leading startup cities in the 2019 by startup Genome Project ranking. And there is startup that started as a startup but now they have become “unicorn”, and“Deacons” are now contributing to the Indian economy. Bangalore has been ranked as one of the five fastest growing startup cities in the world. This all stats fact and figures are concluding the fact the in the upcoming future the startups will shine in India.
