Over the past couple of years, the rise of startup culture in India has gained significant momentum owing to constant efforts undertaken by both government & private players to boost India’s economy by improving its domestic manufacturing capabilities. Be it the Startup India mission under the Indian government’s ‘Make in India’ initiative or other similar programs, the country has seen rapid progress in entrepreneurship ventures, and has also managed to attract substantial investment for the same.
According to data published by Tracxn, the 2nd half of 2017 is proving to be extremely good for Indian startups owing to a rise in funding activities, a scenario that has considerably improved since 2015. The report states that while the first half of 2015 saw startup investment worth USD 4709 million across multifarious industries, 2017 registered a 37 per cent jump in investment, recording a total USD 6445 million funding for startups. The Tracxn report further states that the second quarter of 2017 witnessed a whopping USD 4727 million invested in various startups across India.
While increase in investment opportunities has played a key role in accelerating the growth of startups in India, the industry is witnessing the arrival of various seasoned entrepreneurs who are contributing to the growth of startups in the country.
Established entrepreneurs promoting growth of new age startups
These days, several experienced and successful entrepreneurs have begun to take on the role of accelerators for up-and-coming startups in an effort to lend their support and insight, and contribute to their overall growth. In a way, these industry giants are attempting to fuel new companies with an aim to make them sustainable within a set period of time.
As per a report by the National Association of Software and Services Companies (NASSCOM) and Zinnov Consulting, India is ranked third in terms of number of startup accelerators and incubators in the world after China and the United States of America. While incubators serve as mentors and offer resources necessary to build a startup, accelerators provide additional support in the form of seminars, road shows, tools, and coaching.
The involvement of industry experts in the role of mentors, VCs or angel investors are proving to be quite beneficial for startups. Let us explore how:
Greater possibility of acquiring funds – Accelerator-led startups have a greater chance of accomplishing successive funding rounds sooner than those without accelerators due to the former’s influence and wide exposure to industry networking.
Intensive learning – Established entrepreneurs-turned-accelerators create a diverse learning environment, allowing young ventures to gain practical knowledge from some of the best in the industry, and utilize their insight to solve various issues.
More scope for overall development – According to Harvard Business Review, studies conducted in the US suggest that accelerator led startups have a better chance of accomplishing key milestones, such as raising considerable business funding and customer traction, among others.
Conclusion
Judging by above mentioned factors, it is evident that India’s startup sector stands to accomplish a lot under the guidance of seasoned entrepreneurs as accelerators, and gain significant growth in the near future.
