India has emerged as the third largest start-up base with a 40% year-on- year growth of incubator programmes. Startups stand to gain with the ‘Startup India, Stand-up India’ initiative as 30 new academic incubators have been set up. This gives startups the funds needed to gain a strong foothold in the domestic and international markets.
Out of the 200 startup incubators, 50% have been set up outside the non-metro cities. 66 new incubators have been set up and established in tier-II and tier-III cities. Indian startups are poised to grow 2.2 times by 2020. This indicates that startups have a strong growth trajectory and incubators give them with the support for sustainable development.
What is an Incubator?
Incubators are organisations that speed up the growth and success of startups. They provide funding and differ in their strategies. Incubators provide entrepreneurs with the ability to learn, promote networking and act as coaches. Your small business gains from seed funding, training and financial and legal services. Incubators are also known as Accelerators as they can jumpstart your business.
Several Indian incubators continue to assist in the growth story of startups across India. These include Indian Angel Network(IAN) Incubator, Khosla Labs, Villgro, SeedFund and Chitkara Innovation Incubator.
On the need for more incubators, Apoorv Ranjan Sharma, co-founder and president of Venture Catalysts and Charter Member at TiE said, “In the past, we have witnessed many funded startups shutting down shop due to lack of guidance, business consulting and mentoring. Startups are having a high mortality rate of around 75-80%. Hence, setting up a good incubation programme becomes very vital for helping the early stage startups, to reduce the chances of startup failures.”
Adding to this, Rajat Tandon, vice-president at Nasscom said, “The government recognising 20 incubators is the first step towards certification process. We would be assessing and determining the nature of the startup and defining the innovation aspects. Like in Israel, Singapore and other countries, with the government support the startups can benefit in many ways with such initiatives. This will result in a learn as you grow approach.”
How do Startup Incubators help you?
Incubators help startups understand the basics of running a successful business. With the right platforms, incubators provide networking opportunities that make your business is reachable with marketing. As a result, they help in equipping your startup with the right infrastructure.
Incubators assist with providing your startup with connection to higher education resources and strategic partnerships. They assist with comprehensive business training programs, mentoring and leadership and management team identification initiatives. Startup incubators help with business etiquette, regulatory compliance and intellectual property management and legal counsel.
Pros of Startup Incubators
Instead of having to determine a success path on your own, the incubators assist you from idea to execution. Here are the benefits of starting up in an incubator:
Boost product development
Incubators allow you to cut short mundane tasks and focus on the guiding your attention and resources towards product development. Your startup can use the incubators resources from accounting assistance to legal guidance. Therefore, you can continue to drive product innovation and future expansion.
Access to resourceful networks
The best part of working with incubators is having the ability to reach out to their strong network of partners. Networking helps your startup gain from reaching out to media, technology and financial firms for assistance. As a result, you can boost your brand image among business and corporate circles with the traction you gain at events.
Venture into new markets
Incubators support businesses to expand and grow in new regions. They assist from setting up new offices, developing the product and offering equity. Incubators help small businesses gain a firm footing in places where they do not have a presence. Incubators achieve certain milestones by helping your small business gain a firm footing where it does not have a presence. Established business find it beneficial to work with incubators to expand overseas and gain significant support in unfamiliar landscapes.
Mentoring and Guidance
Most Incubators allow businesses to get an insight into work that they did in the past. As entrepreneurs, they can help define the roadmap, strategy and vision. Incubators provide you with the building blocks necessary to help grow your business in unchartered territory. They act as role models and are instrumental in creating a successful business in their guidance and encouragement.
Incubators help satisfy your education needs, break into newer markets, pool resources and provide access to funds. With Incubators, your startup can reach its greatest potential by pivoting it in the right direction.