Indian Startups – The Changing Game
India ranks third in the number of Tech startups around the world. Today, it is the hub for over 56000 startups. The question arises as to where and how do accelerators and incubators come into the picture for this exponential growth of the Indian startup ecosystem.
While an accelerator accelerates the growth of a business, an incubator incubates ideas and move in the direction of building an effective business model out of them. Incubation is more about innovation, and an accelerator is more about the growth of an existing business.
Incubators for startups have picked up the pace in the last 5 years or so.
What’s in store for Indian startups?
Currently, an accelerator provides a grant for a percentage of equity, along with providing mentoring, strategy planning, training, and funding, to a startup.
The incubator and accelerator can identify exactly what a startup needs for business growth. They have the ability to connect every startup to a corporate investor, a mentor, or a client, as needed.
2017 saw the launch of 34 new funds and funding of $13.5 billion over more than 800 deals.
The Maharashtra Government issued a grant of ₹1 crore for startups disrupting the rural and healthcare sector, at the Magnetic Maharashtra Convention.
The Karnataka Government set up a fund with a corpus of $31 million and gave a grant to over 40 startups.
The success stories of incubators and accelerators in these recent years has played an important part in designing the startup ecosystem as we know it.
The Coworking Impact
The coworking revolution has made a shift beyond corporate offices, to the innovative startups today. The reach and contribution of the coworking industry is wider than ever in the business ecosystem of the country.
The trend of coworking in India is growing, with a rise in demand and popularity among entrepreneurs who are looking to add value to their business by networking and collaborating.
Also read, Funding Support to Tech Startups in India – Karnataka Government and Framework for ₹500 crores Startup Fund by Rajasthan Government.