<div>We are a country where three to four startups are being born every day. The question is - what keeps this bull flying? To put some perspective in place, India is the third largest start-up ecosystem. With more than 4,200 start-ups under its shining belt, the capital inflow is close to $100 million a week. The track looks promising and the funding is expected to grow to a whopping $6.5 billion. That’s almost 0.3 per cent of India’s GDP for the year 2014-15.</div><div> </div><div> </div><div>Trade pundits claim that the Indian startup bull is earmarked to top the list of Global Startup ecosystems. As of now, US stands at the top with around 48,000 startups, UK with over 4,500 startups followed by Israel and China.</div><div> </div><div>As a result, they contribute significantly to the economy by bringing some balance to the employment rate also. Indian startups today employ 85,000 or more people. Further down the pipeline, as many as 2.5 lakh future jobs will be out in technology startups over the next five years.</div><div> </div><div>Today, the thriving Indian startup ecosystem has reconstructed and modernized every possible rung of the Indian economy ladder. From food to governance to facilitating better infrastructural and access for general public. A major contributing factor has been the innovative “everyday-problem-solving” approach of the startup businesses. This also helps create significant growth opportunities for every stakeholder in turn.</div><div> </div><div>According to reports -there is 100 per cent growth in number of private equity, venture capitalists & angel investors. Add to that a 125 per cent growth in funding over the last year, and the Indian startup bull has risen to the occasion and stood up to the global expectations quite well. The recent positive interventions by the government have made “starting up” easy in India. Recommendations from actuator bodies like NASSCOM, have seen positive attitude and significant changes. The rules and regulations for business registrations and funding are quite easier now. There have been further simplifications in the compliance procedures by minimizing licenses/permits/approvals/tax for startups.</div><div> </div><div>If we look at the investment landscape, just the responsiveness and nimbleness - both on the executive’s and legislation’s side - has brought about phenomenal transformations.</div><div> </div><div>Where is the Bull Heading? One cannot discount the fact that for its nascent stage, Indian startup sector has developed an affinity for service sector. This impacts the field of product innovation and adds fuel to the widely spread concern of investors. </div><div> </div><div>Many amongst the titular trade gurus agree that a very few startups are focussing on product development. Pointing out the fact that it is important to look beyond service oriented or aggregation services. The real need of the hour isto innovate the business model altogether.</div><div> </div><div>Thankfully with all the critique,speculations and watch the Indian startup bull is taking every hit and blow in its stride. And it's making its way into the much-admired list of global economies. Economies which claim to be on the threshold of cutting edge technological revolution. </div><div> </div><div>What's Red Bull for this Bull? India is the world's youngest start-up nation with 72% founders less than 35 years. But apart from young ideas, what else keeps this vigorous bull running (read almost flying..)?</div><div> </div><div>1. Rise of the actuators and facilitators: Nearly 110 Incubators and accelerators have come up in India. That is a record growth of 40 per cent since 2014.</div><div> </div><div>2. Exponentially growing VC investments and sentiments: Total investments flowing into the Indian startups this year amounts to approximately $5 billion. An exceptional growth of around 125 per cent from last year. Further there are now 156 PE and VC firms placing bets on the bull. These numbers are growing at an astonishing rate of 100 per cent, over the last year.</div><div> </div><div>3. Effective Labor: The young and aspiring workforce, working round the clock, behind this grand stage has an average age of 28 years. Not afraid of taking risks and are absolutely not shy of disrupting any aspect of consumer’s life. They are there with you from the moment you wake up till the time you are back to bed.</div><div> </div><div>No Bulls***</div><div> </div><div>In closing, going back to our question, it looks like the startup bull is flying with all the power there is. The new entrepreneur era is redefining business and world as we know it. Either you are riding this bull or you are not - the choice is yours.</div><div> </div><div>But just remember, it’s never too late to be what you could have been!</div><div> </div><div><em>The author, Rajat Tandon, is vice president, Nasscom 10 K startup programme</em></div>
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