India Startup Ecosystem Report 2016: Trends and Outlook
- 2. ~10KTOTAL START-UPS Start-ups: By Numbers ~800NEW STARTUPS ANNUALLY BIOTECH STARTUPS ~120 WOMEN FOUNDERS 10% INCUBATORS ~135
- 4. Capital invested in startups since 2006: US $19.8Bn Source: Trackn
- 5. Startup exits since 2006: 5 Source: Trackn 126IPOs M&A
- 6. >8 Indian startups raised US $100Mn+ Source: Track.in
- 7. 61 52 42DELHI NCR KARNATAKA MAHARASHTRA .Trends in VC InvestmentNumber of deals Source: VCCEdge
- 8. 202 148 140 DELHI NCR KARNATAKA MAHARASHTRA .Trends in Angel InvestmentNumber of deals Source: VCCEdge
- 9. Startup Funding = Down 40%.
- 10. Startup Funding is down: US$ 4.1Bn Source: Tracxn 2016 US$ 7.5Bn 2015
- 11. Top investor favorites in 2016. E- Commerce Digital Payments SAAS
- 13. Uninvested capital available with India-focused VCs Source: Preqin US$3.1Bn
- 14. Number of Startups that shutdown in 2016: 212 Source: Tracxn
- 15. Reasons for closing shop: Source: Tracxn Got their business planning and/or execution wrong; Rushed to succeed and ‘failed fast’; Cut-throat competition; Inability to raise capital
- 17. Investment in eCommerce in 2016: US$ 1.5 Bn
- 18. However, early-stage B2B niche eCommerce is hot.
- 19. 3 largest funding rounds in B2B e-commerce in 2016 : Indiamart: US $22M Power2SME: US$20M Just Buy Live: US$20M
- 20. Foodtech is sour. From the highs of the last year, we have hit rock-bottom
- 21. Investment in Foodtech in 2015 and 2016: US$ 297 Mn
- 22. Edutech is hot.
- 23. Byju’s shone bright in 2016, with bank-breaking funding.
- 24. Education Market Size: US$ 60 Mn
- 25. Fintech gets a booster shot. Expect more me-too startups in 2017
- 26. Investment in Fintech in 2016: US$ 195 Mn
- 27. Healthtech still with a chance.
- 28. Healthcare Market Size: US$ 100 Bn
- 29. AI startup segment showing promise.
- 30. A.I. Start-ups: By Numbers A.I. STARTUPS ~140 FUNDING US $ 36M
- 31. In Sep’16, Apple acquired Indian AI Startup, Tuplejump for US$ 20 Mn
- 32. Spurt in entry-level biotech incubators. Large-scale hubs missing.
- 35. Govt Funding for early- stage and late-stage biotech startups good. Gap Funding missing.
- 36. Angels developing appetite for biotech and health!
- 37. Majority of the startups have a “me-too” approach. Only few attempting grand challenges.
- 38. Bots are high on the hype cycle. Not many startups understand it.
- 39. No focus on functionality or products per se.
- 40. Unicorns facing the heat from their global counterparts.
- 41. Unicorns struggled to raise capital in 2016.
- 42. Investor interest in startups solving India- specific challenges negligible.
- 43. Tiger and Softbank have hit pause. Entry of a slew of new investors.
- 44. Many fund managers struck on their own. India VC market maturing.
- 45. VCs focused on startups with better fundamentals, product-market fit and good economics.
- 46. Fund squeeze has led to drop in startups hiring. Loss of trust.
- 47. Startup infrastructure: co-working spaces, incubators, and even, accelerators - mushrooming.
- 49. Startup India Standup India SETU MUDRA Scheme Digital India Make in India Policy Initiatives
- 50. Government fostering incubation culture through Atal Innovation Labs.
- 51. At the School level, Government fostering incubation culture through Atal Tinkering Labs.
- 52. VCs consolidating and cleaning up startup portfolios.
- 53. Local Language is a huge opportunity. Yet, no startups!
- 55. In 2017, lofty valuations will give way to sustainable valuations for startups.
- 56. There will be some more decrease in VC funding in 2017.
- 57. In 2017, Fintech will disrupt many industries.
- 58. In 2017, startups focused on fintech and enterprise segments will flourish.
- 59. Expect some more promising startups to be acquired by global majors in 2017 .
- 60. Indian entrepreneurs never had it so good. 2017 will be a great year.
- 61. A.I. will become the “Big Data” type- hype in 2017
- 62. A.I. will become the “Big Data” type- hype in 2017
- 63. In 2017, CyberSecurity will be hot.
- 64. Alibaba’s entry will disrupt the ecommerce market once again.
- 65. In 2017, IKEA’s entry will disrupt the furtniture startup segment.
- 66. FoodTech will witness further consolidation in 2017. Zomato+Foodpanda = Zomapanda?
- 67. Increased funding for travel startups will be a theme in 2017.
- 68. Media startups will find favour with VCs in 2017.
- 69. In 2017, Bitcoin Startups will spike. However, wait and watch for new regulations!
- 70. In 2017, Agtech Startups will grow. Startup Focus will move to Tier III and IV cities!
- 71. Headquartered in New Delhi, India, Hammerkopf is a boutique consulting firm that enables new ideas and enterprises. We work primarily in emerging technology areas, across information technology, consumer electronics, life sciences, clean energy, automotives among others. WWW.HAMMERKOPF.COM © Hammerkopf, 2016
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