Abstract
India experienced an explosive boom in startup growth, especially in the technology-oriented marketplace. This has translated into a significant contribution to the Indian economy. However, tech startups in India face challenges in securing finance, acquiring talented people, and maintaining a positive cash-flow. Challenges associated with accessing finance are especially pronounced for first-time entrepreneurs as many of them fail to contemplate issues such as product-market fit, future valuation, revenue realisation, and the potential market size. Sometimes, inherent characteristics of the Indian market are overlooked making it harder for inexperienced entrepreneurs to determine the market size, growth, and entry barriers. To support new entrepreneurs with viable ideas, several startup associations, serial entrepreneurs, big corporates, and the government are creating an ecosystem that provides networking opportunities, guidance and training, and infrastructure, such as incubators and accelerators.
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Notes
- 1.
This includes startups already incepted and expected growth until December 2019.
- 2.
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Acknowledgments
The author would like to acknowledge the contributions of Rohit Behara, ex-VC associate and management consultant with an investment fund; Sudipto Das, entrepreneur and author; Dr. G Ananthakrishnan, CTO and Founder, Dave.AI; Abhishek Ayyagari, fin-tech entrepreneur, and a few investors who preferred to remain anonymous for their time and inputs to this paper. I would like to thank Rajesh Vivekanandham, an engineer and my spouse, for his tech and networking support during the research and the survey, and my colleagues from my organization for their review and inputs. Finally, I will like to express my gratitude to Darek Klonowski, Professor, Brandon University, for giving me the opportunity for contributing to this book and his continued support.
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Disclaimer: The research analysis is carried out in the author’s personal capacity. The findings, views, and conclusions expressed in this article are strictly of the author’s and do not represent those of the author’s employing organization.
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Majumdar, R. (2020). Finding New Frontiers: The Challenges of Early-Stage Indian Entrepreneurs in Accessing Finance in an Evolving Startup Ecosystem. In: Klonowski, D. (eds) Entrepreneurial Finance in Emerging Markets. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-46220-8_13
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