The National Association of Software and Services Companies (NASSCOM) has just released a report, according to which, India has been declared as the youngest startup nation in the whole world. The report mentions that an average entrepreneur from India is less than 35 years of age, which is the lowest median age, globally.
The report titled: ‘Startup India – Momentous Rise of the Indian Startup Ecosystem’ has been prepared in association with consultancy firm Zinnov.
On one hand IT industry is struggling to keep pace with the growth rate, and is expected to offer lesser jobs next year, startups are increasing the process of job creation in the country. The report mentions that last year, Indian entrepreneurs created 80,000 jobs, fueled by 100% growth in funding, and 100% growth in PE & VC led funding in the nation.
This once again proves that Indian startup ecosystem has successfully created an environment, which is giving push to innovation, entrepreneurship and overall growth of entrepreneurs.
This report was launched yesterday at Bengaluru by R Chandrashekhar, President, NASSCOM, Ravi Gururaj, Chairman, NASSCOM Product Council and Rajat Tandon, Vice President, NASSCOM 10 K start-up program.
Some other highlights from the report:
- 72% of all Indian entrepreneurs are less than 35 years of age, hence making us the youngest startup nation, globally
- Right now, India is 5th largest startup ecosystem in the whole world, as the total number of startups have growth to 4200, which is an increase of 40% compared to last year
- Out of 1200 startups associated with NASSCOM, 50% of them are digitally focused on ecommerce, consumer services and aggregator based model.
- Total number of accelerators in the Indian startup scene has increased by 40% in 2015, compared to last year. There are now 114 active accelerators in the nation.
- Total funding received by Indian startups has increased by 125% in 2015
- By the time 2015 ends, Indian startups would have received $5 billion worth of VC funds, which includes initiatives from State and Central Government
The report also mentions some much needed changes, to improve the overall startup ecosystem in the country. For instance, only 9% of founders and co-founders in the Indian startups are women (which is still 50% more than 2014!)
Some recommendations which were shared in the report:
- Simplified rules and procedures for business registration
- Ease of FDI rules and investment protocols
- Ease of rules pertaining to licenses, permits, approvals for new startups
- Simplifying tax structure and tax filing for all startups
- Removal of angel investment tax
- Easier methods for raising capital for a new business
- Removing or reducing credit guarantee for loans required by young startups
- National recognition for successful startups, so that more entrepreneurs venture out
- Enabling easier exits for entrepreneurs and VCs
The report holds much significance, as India’s largest gathering of product based entrepreneurs: NASSCOM Product Conclave 2015 is being held right now in Bangalore.