Democratization of Startups in India

When I first returned to India in 2011, working for a startup was unthinkable. But today people from all walks of life and experience want to work or associate with startups or better still be entrepreneurs.?

It has become friendlier over these years. The interest in startups has spiked. But why?

There isn’t only one reason behind the change. The whole startup ecosystem has undergone a change. There is a whole ecosystem to support? aspiring entrepreneurs - incubators, angel investors, venture capitalists, debt funding, high quality talent etc.

Following are the some key catalysts in my observation:

1) Exponential growth in the number of support networks

Co-working spaces like WeWork, 91springboard, etc. have been pivotal in giving people resourceful platforms to brainstorm, build and scale startup ideas. The number of industry-centric #meetups and networking events have also grown. Many industry bodies like NASSCOM Product Conclave, TiE, Wadhwani Foundation, T-Hub, Thane Global Impact Hub, etc. have come forward to help entrepreneurs.

Most importantly, there is a national movement to encourage and support startups. The Startup India movement has created an ever-growing, multi-functional support.

2) Sizable capital for budding entrepreneurs

The whole angel investment ecosystem has exploded and matured. Many successful founders and those working in startups have become angel investors alongside the first generation of angel investors. This has created a very strong funnel for those seeking early stage capital.

Fundraising platforms like LetsVenture, Venture Catalysts, ah! Ventures, etc. have made it easy for startups to approach investors.

Today, any genuine entrepreneur with a strong value proposition can receive the support they need to launch their startup.

Several #crowdfunding platforms have also started to help startups in raising money. Sites like Catapooolt, Indiegogo and Kickstarter enable micro investments in your idea although not always in exchange for equity.

The whole world of venture debt has also opened up.?

3) Tailored support

Whether it's a tier-1 or a tier-3 city, the number of #incubators and accelerators are booming. As per the NASSCOM report, we've 520+ incubators and accelerators in the country. Governments are also setting up incubators and helping students develop their ideas into a startup. Atal Tinkering Labs (under Atal Innovation Mission) is one such initiative that encourages students in schools across India to come up with innovative solutions to everyday problems and beyond.

Many universities are also having their inhouse incubators/ accelerators to encourage students with good ideas. Universities can be a greater contributor to nurturing entrepreneurs given they have excellent faculty to guide these aspiring students. Global campuses like Stanford, MIT, etc., have been the birthplace of some of the hottest tech startups like Google etc., and I believe that Indian universities have similar potential which has started to flourish.

A growing number of startup leaders are willingly taking initiatives to mentor aspiring entrepreneurs on different aspects of startups. Many startups are being incubated within unicorn environments. Several entrepreneurial courses on Udemy, Coursera, etc. are also providing conceptual knowledge to launch and grow an idea.

4) Emergence of a digital-first ecosystem

Cloud computing technologies are helping many startups to test and deploy their products/ services quickly. They’re allowing startups to innovate their business models and processes.

Combining them with social media, startups are able to carry out #marketresearch, customer analysis, product validation and more, efficiently.

5) Development of an entrepreneurial mindset

When we were building Jabong back in 2012, it was extremely tough to attract the right talent. People were looking for a secure job. But now, they're willing to take risks. They want to learn and get new experiences. Thus, more college graduates are queuing up to work in a startup.

Also, those who’ve worked in startups are striving to set up their own startups now. They’re unafraid of failing. This mindset shift is a pronounced change I’ve noticed in the new generation of #entrepreneurs. This has created a pipeline of excellent entrepreneurs who have had the experience of building/ scaling and sometimes even seeing successful exits (being acquired/ or IPO’ed)

This is one of the best times in India for everyone to attempt to solve great problems/ change an industry/ bring the best service. There’s every reason to try. Even if you do not build a unicorn or do not go for an IPO, there is so much learning and success in just starting up.

To try is the first step. Whether you fail or succeed is the next step to contemplate.

Agree to disagree? What other factors do you consider to be important in the democratization of startups in India?