" India is not Simply Emerging , it has already Emerged " - Barack Obama
" Venture capital is about capturing the value between the startup phase and the public company phase." -- Fred Wilson
India has risen as a key destination for global venture capital investing and a prominent hub of technology innovation with one of the fastest growing economies globally driven by a large middle class leading to vibrant domestic consumption , robust domestic talent pool and strong manufacturing base.
1. Start Up Boom
The entrepreneurial boom and dense tech talent are creating many big opportunities and India is set to become the largest economy beating China.
The Indian start-up ecosystem is rapidly evolving driven by an extremely young, diverse and inclusive entrepreneurial landscape. This is leading to emergence of focused domain solutions for verticals like healthcare, agriculture, and education etc. An additional driving force is a four-fold increase in access to capital through VCs, angel investment and seed funding is allowing Indian entrepreneurs to work on building tailor-made products for their customers.
As per NASSCOM Report, India is The Fastest Growing and 3rd Largest Start-Up Ecosystem globally.
According to Google Capital " In the next 5 years , 30% of the world's billionaires will be from India."
2. SETU
The Government has established a mechanism to be known as SETU (Self-Employment and Talent
Utilisation) under NITI Aayog. SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up businesses, and other self-employment activities,
particularly in technology-driven areas.
Also, India Aspiration Fund (IAF) under the Small Industries Development Bank of India with a capital of Rs. 2,000 crore to give a boost to start—up ecosystem in the country.
3. Untapped Market with Huge Potential
- Despite being the 2nd highest user of internet worldwide after China , the penetration is still at a low of 30%, which means it has a huge untapped market.
- 1.21 Billion Population with 30% Urban and the rest is Rural which is untapped and has a huge potential for any product.
- 1.21 Billion Population with 30% Urban and the rest is Rural which is untapped and has a huge potential for any product.
4. Reforms by the Government
The writing on the wall seems clear. New policies, regulations and improvements in India’s macroeconomic parameters, as well as its growth prospects, seem to be taking it to the next level of development. Investments within and outside the country are therefore expected to bear fruit. More importantly, these investments and the visible changes caused by them can be sustained over a period of time. It’s time investors made the best use of these positive developments.
5. Internet Boom
A total of 354 million users of internet, and an average of 20hours per week spent on internet by an average user and the advent of low-cost smartphones, coupled with low mobile tariffs, has empowered consumers in the hinterland to use data connectivity and we will be seeing more usage of internet from these areas in the months to come. Also, the increased internet usage will boost digital commerce in India.
The size of the internet economy of India by 2020 would be $ 200 billion with current analysis.
CONCLUSION :
Well for India , this is that once in a lifetime moment to seize the opportunity and show the world that it is no more an underdog and be the start-up and skill capital of the world.
The Start-up boom and the growing middle class with internet reach and usage growing exponentially has given the VCs to invest in a growing world power.
Venture Capitalists are looking at investing in high-potential technology and technology enabled businesses with the following characteristics:
Strong leadership and management teams
Potential to become disruptive category leaders
Capital-efficient business models
Targeting rapidly growing domestic or global market segments
Useful Links :
1. Total Funding of India in 2014 : http://yourstory.com/2015/01/india-funding-digest-2014/
2. Funding Report for 2015 Q1 : http://yourstory.com/2015/01/india-funding-digest-2014/
3. Total Start-up Investments in 2015 : http://trak.in/india-startup-funding-investment-2015/
-Akash Kakkar
Vice President
Enactus H.R. College
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