Why bother about a pack of hyenas who look on from corners when the lion kings are fighting at the centre ...
Poor ideas and poorer engineers are killing Indian startups
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Why bother about a pack of hyenas who look on from corners when the lion kings are fighting at the centre ...
Despite all the efforts, the industry is built on a flawed foundation. More than 90% of startups in India fail within five years of founding, according to IBM.
The melee of newbies
Aping successful business models is doing the nascent startup industry little good in finding its own bearings.
More than 77% of venture capitalists interviewed by IBM cited the lack of pioneering innovation as a major reason for startups fizzling out. “Indian startups are prone to emulate already successful global ideas,” the report notes. The homegrown Olas and Flipkarts and Snapdeals are proof.
Finding and holding on to the right talent is another big hurdle. Technical institutes in the country churn out 1.5 million engineering graduates each year, but fewer than 5% of them are deemed employable. For years, India’s limited tech talent has also been subject to brain drain. Even though that trend is reversing, it will take years for the effects to show. Especially since startups have lost their grip on Silicon Valley veterans who returned to partake in the dynamic environment. Seven in ten of the venture capitalists in IBM’s survey believe that “talent acquisition is one of the biggest challenges faced by Indian startups, and limited availability of necessary skills impedes growth.”
Startups are also grappling with a funding crunch, according to 65% of the venture capitalists. In the quarter ending March 2017, the volume of initial angel and seed investments more than halved to 120 compared with 245 deals in the same period in 2016. And Series A funding, traditionally secured right after seed funding to expand user bases and develop the businesses, declined 65% in deal value from a year ago.
A lack of knowledgeable and experienced mentors and amateur founders added to the troubled mix.
Bringing back a conscience
Poor business ethics often put investors and founders on different pages, fracturing entire businesses.
Founders often get away with misrepresenting their financials, obscuring future plans and exuding their disregard for regulatory constraints, Economic Times reported. Eventually, the lines between business funds and personal wealth get blurred. (It’s no wonder that India’s richest men also head some of the biggest companies.)
“Thinking of that money as their own, as opposed to taking care of it because the capital is vested in a company or to build a certain technology, affects the organisation, and how people are treated,” Nipun Mehrotra, chief digital officer, IBM India and South Asia, told Economic Times.
Kartik Hosanagar, professor of marketing at the University of Pennsylvania, blames a combination of India’s “overall jugaadmentality” (a makeshift attitude) and “poor governance” for the flouting of laws and the inaccuracies in financial data. For instance, the lack of an active board can mean some of the issues like financial misreporting can go unnoticed.
“Largely, good investors stay out of the way and let founders do their thing. Excessive interference only hurts startup progress,” says Hosanagar. “But a complete absence of governance can be bad too. First-time entrepreneurs can benefit from some hand-holding.”
Source: qz
What is so funny about it?
Dhirubhai Ambani or our own Yousuf Ali built their empires with basic degrees or basic education.
Business is really a gambling .A lots of factors affect business.An academically brilliant guy might miserably fails in business and vice versa .
@CAD look at this Indian startup that has failed miserably 
https://defence.pk/pdf/threads/the-...e-united-nations-as-beer-of-the-month.496920/
https://defence.pk/pdf/threads/the-...e-united-nations-as-beer-of-the-month.496920/
Wow so many start ups means India is exploding with Ideas..... Thats just wonderful.... let 95% of them fail but those who will succeed would do wonders for the Indian Economy. Wont be long someone like Elon Musk comes up in India that ways.
Thank God that Indians are thinking out of the box.
Thank God that Indians are thinking out of the box.
The Eagle
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Because whatever you posted is trolling and the same is not the topic. A thread invites everyone to discuss the topic rather than trolling for a fest and off-topic discussion. Whatever the facts you are trying to post does not add anything to the topic in hand or you mean that blaming others will actually prove Op as nothing. There was no such reason to post as there is no Pakistani City etc in whatever top list is. The Op is good enough to understand the subject and then discuss it.
EyelessInGaza
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Despite all the efforts, the industry is built on a flawed foundation. More than 90% of startups in India fail within five years of founding, according to IBM.
.............
Source: qz
This tells me you have no clue about entrepreneurial activity and are laughing at something of which you have ZERO knowledge.
Do you have any clue that 9 out of 10 startups fail anywhere in the world?
https://www.forbes.com/sites/neilpa...t-you-need-to-know-about-the-10/#2a67b4ce6679
problem is that ppl dont get promoted for technical skills but for social engineering skills. So finally when they get to to the top they can only talk but cant do any thing. If you see in west most of the ceo's or vice presidents in company will know technology in &out or even better they would have created the product.
Rajaraja Chola
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Let me tell something to the gem of the idiot who opened this thread. First only quality engineers will have the confidence to start something like a business. Secondly, in every country, 80% of the start up fails. I am working in a start up that was started from the ashes of Nortel in 2001. Of the hundreads of companies that sprung up, 90% are closed or sold now. Only the best can survive. Not all start up can have success stories.
But start ups are ideal to our Indian Nation. Someday we can have our own Tesla, own Fb. Its the idea which is required.
But start ups are ideal to our Indian Nation. Someday we can have our own Tesla, own Fb. Its the idea which is required.
We have our own PayTm and Flipkart, we are not doing bad in startup scenario, and govt is encouraging startups right at universities...Alibaba and FB can easily be created by a population of 1.2 billion...we need to give our talents time, resource and scope to fail
EndangeredSpecies
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Pakistani way of starting up new businesses. Do not start-up at all. Let someone from China come and do it for you.
Anyways, these folks certainly forget there is no Pakistani equivalent of FlipKart (The grand daddy of India's start-up culture) and Inmobi.
EndangeredSpecies
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Well in China you cann't start a business without blessing from the Party, so ideas and engineers are irrelevent.
Anyways, business is always about small incremental improvement over competition rather than great engineers and grand ideas. Too many businesses failed even with grand engineers and great ideas while many horrible ideas and poor engineering survived by shipping product/services first and then doing incremental improvement.
Zhukov
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Well Except for Doctors and Accountants. All fields in Subcontinent are suffering from this Non-Practicle Theory based approach.
It needs to be changed ASAP.
Surprised again whenever i read a System based problems of india i can almost 100% relate it to Pakistan as well. Just swap India with Pakistan and it will fit exactly same.
It needs to be changed ASAP.
Surprised again whenever i read a System based problems of india i can almost 100% relate it to Pakistan as well. Just swap India with Pakistan and it will fit exactly same.
jbond197
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Each failure is a stepping stone towards success.. People laughed at ISRO for its initial failures too, see where it has reached today. People laughed at DRDO, see they have improved a lot and doing well now. Each failure teaches us one way of not doing things, and we can not learn it from others experience, we need to give it a try ourselves. Ignore the negative people who have not tried to do a single thing in their lives, their only speciality is to crib & find faults in others. There is nothing called good or bad, nobody is born good. Its the exposure and experience that makes one good or bad. So as long as Indians keep trying/learning, i have full faith in India's future.
Rajaraja Chola
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That's what I have been telling. Most of the start up are started with an intention of selling it for a million or two dollars. And Indian start up scenario is pretty new. Bangalore is evolving as an ideal start up destination. So it will take a decade or two to see more of them dominating Indian and some of the world markets.
Paytm for example has started operations in Canada, and there is no app available equivalent to Paytm here. We have Ola, Flipkart, Snapdeal(which will go down in history sooner) and Mobwiki as well. Hopefully we get more.
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