Start-ups are like those kids at home. They are creative and found wanting in enthusiasm, unmindful of elders at home. Even as the big brothers are worried about global economic challenges as they enter the New Year, start-ups are as bubbly as they have been.
Scores of start-ups gathered twice at the swanky Hyderabad International Convention Centre here in a span of just one week this month to showcase their products to investors and IT firms.
The IT industry association of Andhra Pradesh (ITsAP) and The Indus Entrepreneurs (TiE) held the two meetings where they focussed on start-ups.
Zip.pr, Hosteldunia and youredoctor are some of the start-ups that caught the attention of investors and IT executives that gathered at the ITsAP meeting. “Their enthusiasm is very encouraging. They are very small and very young. You know, some of them are set up only six months ago. I must say the prospects for start-ups in 2014 are very bright,” says Ramesh Loganathan, Centre Head and Vice-President (Products) of Progress Software.A start-up supporter, Ramesh conducts Start-up Weekends to nurture those who want to start their own enterprises.
The Indian Angel Network, a network of investment companies, says a firm foundation stone for a good start-up ecosystem has been laid. “Some of the start-ups are entering the second phase of funding. You know, only good projects could make it there,” says Padmaja Ruparel, President of Indian Angel Network.
If the start-up story so far is only about major cities, the New Year is expected to see buzz in the tier-II and tier-III cities. Ruparel agrees: “There is a good trickle there. We are going to help them out in smaller cities like Visakhapatnam, Madurai, Patna, Chandigarh and Nagpur. The North-Eastern region, too, will be a focus for us next year.” The Indus Entrepreneurs, too, feels smaller towns have abundant entrepreneurial talent that needs to be tapped and encouraged.
The global network of entrepreneurs of Indian origin is in the process of launching a software-based platform to help such start-ups.
“You can put your proposal on the platform in order to reach out to potential investors in the TiE network in a short period of time. If their idea is good, the chance of them getting investments is very high. Because you are directly targeting them,” TiE Global President Ashok Rao says.
Though the picture is rosy on paper, the ground level issues are posing big challenges to start-ups. Only a small percentage of the ideas are getting attention. After getting funds from family, friends and high net worth individuals for the early phase of growth, a good number of start-ups are struck. They don’t get enough funds for working capital to move head, forcing them to either quit or sell stake.
Product development Former Microsoft India Development Centre Managing Director Srini Koppolu, who launched Mission R&D, an initiative to promote product entrepreneurs right at the college level, is planning to expand the scope of the programme by covering more colleges. The idea is to attend to the manpower needs of product firms. A good number of start-ups are focussing on product development, rather than becoming a me-too services company.
Zip.pr founder and CEO Aditya Vuchi reflects this mood in the start-ups. He has just developed a product that gives a PIN-like alphanumeric identity for businesses, organisations and individuals. “Have zipper and you will have a place on the GPS maps,” a beaming Vuchi says at the ITsAP showcase.
He hopes to make it big with the idea in the New Year. So as umpteen number of start-ups that are sprouting across the country.