Though this is my First post on website but I wanted to make it interesting by sharing some problems faced by startups in india.
Meanwhile If you are coming for first time on my website you should know the Plot of the answer..
I along with team are running active startup communityfrom last few years comprising 22,000 members ( Now 1lakh+ ) , hosted 100+ Impactful events and raised funds for 17+ startups since we closely worked with whole startup ecosystem and can answer this precisely.
Here are few Major problems faced by Founders and budding entrepreneurs while starting up their new venture.
Problems Faced by Startups in India.
- Eco-system is in developing phase.
Entrepreneur journey is lonely and without ecosystem support, its tough to grow alone. Since startup eco-system comprises of different stakeholders.
And in India ecosystem is at its nascent stages specially in non-metro cities.
We can solve many problems together by using community resources.
2. Co-founder Match ( Read tech Co-founder requirement)
We have good demand of sound good techies in startup ecosystem. Though we have good number of techies but very few people want to work for startups or join a co-founder in startup as they are less paying in initial days and kicking your corporate job is not easy.
In Delhi, We run couple of Co-founder meetups in speed dating type format in order to solve this issue.
3. Right Mentors & Advisors
Whenever you do your Elevator Pitch, It’s very important to take care of a slide where your advisors and mentors are mentioned, as investors are actually interested in that.
Also, right mentors and strategic advisors are required to boost your tech/sales/marketing or operations plan.
Good thing is that almost every CXO/CMO/CFO/CTO with great work experience wants to work/consult startups on sweat equity basis or just to give back to ecosystem.
We are also doing something on similar lines.
4. Lack of exposure to ecosystem/Programs out side India.
In India we are preoccupied in pursuing our “Engineering degrees” and very few people are aware of the happenings and programs outside India for startups and founders.
Apart from numerous startup accelerators round the globe there are 50+ programs where Indian startups can apply for equity free funds in forms of grants by leading private and government programs.
5. Mindset of Indian Families / Society
Everyone wants you to be an Engineer or a Doctor, Business is a taboo and Entrepreneurship is a Sin for some people in society.
But we hope it’s changing in our society specially in metro cities.
6. Market size analysis & Research :
This is the one of the biggest challenges for a startup to feed its products and services in the right target audience. Gathering primary and secondary data to back certain assumptions on business projections is the key. Once this is done the excel sheet can show some valid projections.
Sample size of audience really matters and it needs proper research and expert hawk eye on it.
7. Execution: 20% Idea and 80% Execution
“Ideas alone are Cheap”
Also This from– Founder of
8. Valuations :
“The biggest determinant of your startup’s value are the market forces of the industry & sector in which it plays, which include the balance (or imbalance) between demand and supply of money, the recency and size of recent exits, the willingness for an investor to pay a premium to get into a deal, and the level of desperation of the entrepreneur looking for money. “
Valuations are not a child’s play for early stage venture.
A tech startup can be worth of 1 crore for some investor (which is not a techie) or it can be worth more than 6 crore who knows how this tech can make a dent in the markets.
So It’s important and crucial problem to solve !!
9. Customer Acquisition & Retention:
Everyone wants to raise funds but less people are bootstrapping their business and talking of real customer acquisition on day one. Not just acquisition, customer retention is equally matters.
10. Hiring initial employees /Team building
It’s tough to share vision with others to work for you or with you. Hiring with less salary offering is tough ball game for startup founders.
11. Unrealistic Expectations:
“Kuch bhi expect mat karo !” Business basics are same, all that matters is innovation + scalability.
And please don’t start a business to raise funds alone, rather start a business to create an impact with MVP ready/ making money or both.
And Yes, I am headingand , would love to help you out if you need any.