A tech startup is a company whose purpose is to bring technology and service to market. So as per India, we can say there is hope for more. As a developing nation and a lot of sectors are untouched. We can come up with a lot of ideas. We need job creators so there is a huge opportunity in this field.
The basic foundation of any startup is undoubted ideas and talent but it is way more than that. You need to be very passionate, confident with an immense amount of willpower to face the competition in the respective field.
In India, startups mainly aim to encourage entrepreneurship, construct entrepreneurial capabilities at scale and strengthen the early phase support for startups. This can be done by gathering key stakeholders of the tech industry including:
- incubators or accelerators
- angel investors
- venture capitalists
- startup support groups
- technology corporations
If we see the previous year records, 2016 is probably a retreat than compared to other years, even though startup funding dropped by almost half during this year still the number of deals was near about the same as the last few years, keeping the investor appetite strong like usual. 2017 is expected to be more of the same as 2016 with the focus on reducing losses, brutal competitions among the top tech companies.
2. Make in India program
Make in India program helps young minds for startups and bringing new services to the market. In the world where virtual reality and robots are becoming real, we can go ahead. All in all the opportunities are more than what we think of.
4. How can Indian Startup help you?
Indian Startup program for the internet and mobile startups. The program is designed to provide startups with mentoring, funding and infrastructure support over a period of three months which ends with a Demo Day wherein all the startups pitch their improved business plans to investors.
The Indian Startup program has supported more than 26 startups in the Internet & Mobile domain. More than 24 of these startups are active and going strong and 8 of them are already funded or generating revenue to support their business.
5. Now few questions may arrive like: How to get funding? Whom to approach?
Finding a source of funding is quite a challenge than you may think it is. It’s quite unusual for many entrepreneurs to approach anybody in general for their primary funding needs. Here are the different ways to get funding listed down for your convenience:
Friends and family and/or Private Investors
Even though there are difficulties in approaching friends, family or to be precise private investors, tapping into their pockets is quite beneficial, but there are some negative aspects as well which cannot be neglected. Receiving funds from the private investors includes a lot of advantages for both sides, though definitely, you should stride lightly when making your delicate financial relationships. The major difference between any specialized investors and friends and family is that their concern about you.
But if by any means your business falls short or in case you are behind in compensating the money then you may be headed for some clash with the aforesaid family and friends in near future. The understanding between you two should be as professional as possible.
An angel investor is a person entitled with a sky-scraping net-worth entity, who spends his or her own funds in the startup companies in exchange for a justified share of the business. They offer economic assistance and guidance for small startups or entrepreneurs. The investment that they offer can be a one-time injection of start-up money for continuing the support to carry the business during all the critical periods.
Angel investors tend to give more positive terms than other lenders and investors. They are regularly investing in the individual rather than the feasibility of the business. They pay more attention to helping the business to be successful, rather than reaping enormous income from their investment.
All the Entrepreneurs can obtain a quick start with the help of business incubators and accelerators. Business accelerators offer an opinion, guidance and different forms of support for businesses in the startup period, it reduces the time period for starting up by working as a form of boot camp. Business accelerators help the entrepreneurs to kick the ground running, and it aims to turn business ideas into examples or products that are prepared for market in just a matter of months.
The Sponsors offers a preliminary financial support and knowledge to small groups that can express and enhance a great product initiative in the market. In return, the sponsors receive a small fair justified stake in the new business. The startups under the guidance of the accelerators obtain financial support, physical infrastructure and business tutoring from Indian Startup network of professionals, advisors, and financiers.
Venture Capital (VC) Money is provided by the investors to start-up firms and small businesses with perceived long-term growth potential. This is possibly the most important source of funding for any start-ups that do not have an access to capital markets.
It is a financial support invested, or is accessible for investment, in an attempt that offers the possibility of profit along with the possibility of loss. Venture Capital is the second or the third phase of a conventional startup financing series, which begins with the entrepreneurs putting their personal available financial support into a shoestring procedure.
Incubation centers are a very important source of investment and support for all the new businesses, helping to promote youthful firms, help them to survive in their early phases of the startup. They offer:
2.stage to do networking
There has been a considerable rise in the number of incubation centers in India during the past 10 years. Incubators utilize their enormous knowledge and experience to attract investors towards the immense initiative and to turn that initiative into a beneficial business.
Seed capital- Early-Stage Risk funding is necessary to get a new company started. This primary funding, which generally comes from the business owner(s) and maybe friends and family, supports beginning activities such as market research, product research and development (R&D) and business plan improvement. At this early stage, most entrepreneurs need guidance and mentoring along with the financial support.
Seed capital funding is measured high-risk since the business is not fully practical and has no track evidence. Investors who offer seed capital funding often do so for a stake in the company. Once a startup has demonstrated feasibility, it is more likely to magnetize venture capital or angel investment to provide better funds needed to get the business up and running.
The Indian Startup Program
The Indian Startup programs are intended to equip entrepreneurs to establish well run, technically advanced and profitable companies in India. Indian Startups is a networking group for Indians across the world to help venture new startups, nurture existing startups, encourage entrepreneurship, provide incubation facilities, co-working space, seed funding, crowd funding, investor connections, co-founders, mentors, advisers. Also provide wherever possible free website, legal, patent, accounting, marketing and other essential services needed for start-ups.
The general problems faced by any new startups are:
1. Lack of funding
2. In this very advancing world, new technologies become old before you know it.
Eg- Kodiak cameras were replaced by digital cameras which are now been replaced by cell phones.
3. Proper Marketing of the product is important. If a startup fails in reaching to proper public or platform, it may face failure.
4. Attitude - people or customers’ attitude towards startup. You need to make them believe in your product. Need to gain their trust.
5. The current education system doesn't influence students to promote innovative and new ideas much.
These problems can be solved in three tiers:
1. A promotion of benefits and a platform of new ideas for helping and influencing new ideas to come up because a number of ideas get stopped in early stages of startups before one can even pitch the idea to a proper agent.
2. Support in needed by those who want to lead in this field.
3. The fear of losing and rebuilding self-confidence is a must cause the path to success in not assured.
But there are stories of failures that one should learn from even after sheer luck and hard work. To name a few:
- Purple Squirrel