RECENT REVOLUTION BROUGHT ABOUT BY STARTUPS

WHAT IS A STARTUP?

A Startup is a young company that is just beginning to develop. Startups are usually small and initially financed and operated by a handful of

founders or one individual. These company offer a product or services that is not currently being offered elsewhere in the market, or that the

founders believe is being offered in an inferior manner.

WHY STARTUPS?? LESS COMPETITION

You’ll Have a Closer Team

You’ll Have More Freedom

They Are More Hands-On

Sense Of Importance

Hours Are More Flexible

Experience is Unparalleled

Startups Move Quickly

STAGES OF A STARTUP

1. Discovery: Whether or not the idea or concept has value or not.

2. Validation: How does the product do in the market

3. Efficiency: How is the customer experience for the product?

4. Scale: This involves bringing analysts & executives to drive firm growth

5. Maximizing profits: Achieve great growth that can expected to be continued.

6. Commitment: Shareholder agreement signed between co-founders, including

milestones, committed time and money use, for minimum 3

years with vesting terms.

WHERE DOES FUNDING COME FROM?

ANGELS & VCsANGELS: An angel investor is a wealthy individual who invests his or her personal capital in a company in exchange for equity in that company. Tend to be individuals investing their own money as opposed to VCs that manage the money invested in by multiple people. Fill in the gap between “friends & family” and VC.Sunil Kalra Of Sector Agnostic is a well known Angel Investor. Druva and Wishberry are his major investments.

VCs: Start up companies with a potential to grow need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective. This capital is known as venture capital and the investors are called venture capitalists. The returns to the venture capitalists depend upon the growth of the company.

STARTUP RATESFrom a mere 200 startups in 2010 to 3100+ in 2014, it definitely is a revolution!

USD $13 million invested in 2009 by VCs and Angels, now at an ever increasing rate at USD

$1818 million in 2015!

Startups could have had a better foundation till now, had the recession of 2008 wouldn't have

occurred.

New Startups have grown at a very rapid rate after the aftermath of the recession.

INDIAN STARTUPS IN THE LAST 5 YEARS (2011-2015)

2011- Startups started to take shape. Many professionals started small scale startups with their

ideas. But recession had hit hard so many were afraid to take risks.

Startup rate(2011)- 210 startups in India.

2012- Startups came into some fame as Indian Alumnus founded companies, Flipkart and

Snapdeal, both came into picture with heavy investments from major VCs.

Startup Rate(2012)- 489 startups in India.

INDIAN STARTUPS IN THE LAST 5 YEARS (2011-2015) contd.

2013- As one of the best years for the Indian Stock Market, profits came into many startups and the investment rate doubled this year. Flipkart and Snapdeal turned Angel investors in a span of 2 years. Zomato and Myntra came into picture this year.

Startup Rate(2013)-1200+ startups

2014- The revolution had begun. Students from various colleges and professionals dropped out to start their own companies and the VCs did not either. Majorly USD $800 million was invested this year. Ola Cabs the winner this year!

Startup Rate(2014)- 2000 startups

2015- The scenario looks promising, the startups rates are as high as 3000+ at an investment rate of USD $1500 million and counting!

STARTUP STATISTICS

IDEA TO A STARTUP

MARKET RESEARCH

INTELLECTUAL PROPERTY

BRANDING

INCORPORATE

CO-FOUNDER

BUSINESS PLAN

WORKPLACE

FIND MENTOR

RAISE CAPITAL

Everyone has at least one idea for the next big thing. What makes startup founders different is their willingness to take action to make one of those ideas a reality. A big part of execution is simply getting started, but once you've got the ball rolling it's helpful to follow the checklist to make sure everything is in order.

WHY STARTUPS FAIL?

MARKET PROBLEMS

BUSINESS MODEL FAILURE

POOR MANAGEMENT TEAM

RUNNING OUT OF CASH

PRODUCT PROBLEMS

Ignore Customers No Market Need Not the Right Team Poor Marketing Need Big Model Product Mistimed Lack Passion Failure to Pivot Pricing Issues Don’t use Network Lose Focus Burn Out Get Outcompeted No Financing Bad Location Only Part Time Bad time to Start

OTHER PROBLEMS

KEY PLAYERS

$2.5 billion$15 billion $5 billion

TOP STARTUPS IN INDIA

$660 million$1.5 billion

$1 billion

As our sustained effort to showcase more B2B startups, we are mentioning the startups from the B2B sector that form the Top 5 in the sector:

E-commerce startups form the majority of the responses with 63% respondents preferring them over the non-ecommerce startups.

WHAT PEOPLE PREFER?

CULTURE OF INNOVATION• Universities should have an “ecosystem of entrepreneurship” – top to bottom

culture that breeds and fosters innovation.

• Offer university resources to spinouts: continued access to cutting-edge lab facilities for startups is extremely appealing to VCs.

• Universities should leverage visibility by partnering with other universities.

• Build on each other’s successes rather than being competitors.

CONCLUSION

There’s no doubt India will grow, the only question is how fast? India is a place that can be whatever you want it to be. It can be ideal for small cash flow business or a billion dollar empire. It’s true, building a company in India is full of fiction, but less friction usually means 10X the competition.