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India among world’s top 3 countries for launching new start-ups

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With the total venture investment in start-ups in 10 years is estimated at Rs 1,11,700 crore, India has emerged as one of the top three global countries in terms of the number of start-ups founded.

About Start – Up,

A startup company is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a marketplace need by developing or offering an innovative product, process or service.

  • A startup is usually a company such as a small business, a partnership or an organization designed to rapidly develop scalable business model.
  • Often, startup companies deploy technologies, such as Internet, e-commerce, computers, telecommunications, or robotics. These companies are generally involved in the design and implementation of the innovative processes of the development, validation and research for target markets.
  • While start-ups do not all operate in technology realms, the term became internationally wide spread during the dot-com bubble in the late 1990s, when a great number of Internet-based companies were founded.India among world's top 3 countries for launching new start-ups
  • The exact definition of “startup” is widely debated. However at their core, most definitions are similar to what the Small Business Administration describes as a “business that is typically technology oriented and has high growth potential“.
  • The reference to “growth potential” may mean growth in revenues, number of employees, or both, or to the scaling up of a business to offer its goods or services to a wider or larger market.
  • One popular definition by entrepreneur-mentor Steve Blank and Bob Dorf defines a startup as an “organization formed to search for a repeatable and scalable business model.
  • In this case “search” is intended to differentiate established late-stage startups from traditional small businesses, such as a restaurant opening up a mature market.
  • The latter implements a well-known existing business strategy whereas a startup explores an unknown or innovative business model in order to disrupt existing markets, as in the case of the online merchant Amazon, the “app”-based ride service Uber or the search engine Google, each of which pioneered the development of their respective market categories.
  • Blank and Dorf add that startups are not smaller versions of larger companies: a startup is a temporary organization designed to search for a product/market fit and a business model, while in contrast, a large company is a permanent organization that has already achieved a product/market fit and is designed to execute a well-defined, fully validated, well-tested, proven, verified, stable, clear, unambiguous, repeatable and scalable business model.
  • Startups usually need to form partnerships with other firms to enable their business model to operate.To become attractive to other businesses, startups need to align their internal features, such as management style and products with the market situation.
  • In their 2013 study, Kask and Linton develop two ideal profiles, or also known as configurations or archetypes, for startups that are commercializing inventions. Theinheritor profile calls for management style that is not too entrepreneurial (more conservative) and the startup should have an incremental invention.
  • This profile is set out to be more successful (in finding a business partner) in a market that has a dominant design (a clear standard is applied in this market).
  • In contrast to this profile is the originator which has a management style that is highly entrepreneurial and in which a radical invention or a disruptive innovation (totally new standard) is being developed. This profile is set out to be more successful (in finding a business partner) in a market that does not have a dominant design (established standard).
  • New startups should align themselves to one of the profiles when commercializing an invention to be able to find and be attractive to a business partner. By finding a business partner a startup will have greater chances to become

About the Indian Start – Up,

The total venture investment in start-ups in ten years, beginning from 2005, is estimated at Rs 1,11,700 crore.

  • The average venture investment in investment flow is about 42 percent, while fundings have arrived for more than 10,000 start-ups during the same period. The average annual growth in the funded start-ups has been 16 percent.  
  • Moreover, the average age at which the start-ups get angel funding has consistently decreased from close to five years to around half a year in 2015.
  • It is noted that there is also a significant focus in creating a supportive policy framework to encourage start-ups. The IIT-M report focuses on the trends and ecosystem of start-ups in the country.
  • According to India Venture Capital and a private equity report prepared by the Indian Institue of Technology in Madras (IIT-M), the Indian start-up landscape has dramatically changed in the last few years.
  • The report also says that Indian start-up landscape is very vibrant as seen by the number of companies founded.