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India’s Startup Ecosystem Is Not Doing Too Well Compared To Global Hubs, Says Study
There have been many (including me) who feel that the startup scene is India is looking good compared to the previous years. We have got new startup accelerators and some good VC interest. New Internet startups in India are coming up regularly. Apparently, all of this doesn’t amount to much of an ecosystem, says a new study which has been released by Startup Genome and Telefonica Digital. The study takes a data oriented approach to list the top 20 startup hubs across the globe.
Silicon Valley (no surprises here) is the biggest hub of them all. However, what is interesting to note is the fact that the Israeli city of Tel Aviv is slowly closing the gap between itself and the valley. The report also has the dope on India and the results are disappointing. Bangalore is the only city which has been named to the Top 20 but it has performed badly according to this report. Bangalore has fallen from a previous rank of 9 in April to 19th, just about making it to this list.
The report however remains optimistic about India.
“India could well be one of the toughest countries in the world for a startup to flourish. Although it is one of the world’s fastest growing economies, India ranks 140th in the world in nominal GDP per capita. However, being one of the biggest markets on earth provides a foundation for a prospering startup scene.”
However there is much potential for the ecosystem in India to improve. The report notes that Bangalore startups have a 24% more chance of monetizing compared to Silicon Valley startups and that is high praise indeed. The level of education among entrepreneurs in both cities is the same. The hiring capacity of Bangalore startups is at par with the Valley ones. 50% of the Bangalore startups are working towards building a great product while 30% want to change the world, it seems. Another thing which is very critical to building better services is keeping up with technology. Bangalore startups, the report says, are still using PHP and Java instead of next gen frameworks like Ruby and Python.
So, how can we get better?
Indian startups need to firstly develop a solid startup culture and get innovative with their products and services. After that they should adopt and develop new frameworks while they are at it. Twitter and Facebook have developed new technologies while they were building their products. We need to do that too. Open sourcing them later would be a good idea. The problem also lies with funding. The report says that Bangalore has a funding gap of 74% compared to the Valley. This needs to improve. However, I am sure that we as country are getting there. As startups start getting profitable, VC confidence will improve and we will see more venture money come onto the table. Another aspect that can be improved is making better policies for the Internet and startups in general. The Indian Internet is not very free these days and work should be done to lobby against the Government on restrictive aspects of their policies. All emerging startups should get together and form a lobby and educate everyone about the need for a free and open Internet.
In what way do you think we can improve the startup ecosystem in India? Share your views with us.
Full Report | Startup Ecosystem Report, 2012
Story Source | EETimes India
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2012-11-23 21:20:10
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