Evaluating the role of incubators in the success of startups in the Indian context

By: Contributor(s): Material type: Computer fileComputer filePublication details: Ahmedabad Indian Institute of Management 2024Description: 26 p. : ill. ; includes referenceSubject(s): DDC classification:
  • SP2024/3901 SP003901
Summary: To incubate or not to incubate? In the history of starting up, we haven’t heard any startup saying they don’t want an incubator to help them. In fact, a lot of start-ups want incubators to help them early in their life, but has the start-up ecosystem ever asked the question if they should incubate or not? This is a question we seek to answer in the Indian context. Start-ups are early-stage companies that eventually become bigger businesses if they continue to grow and sustain. Venture capital funds are funds that provide capital in the early stages of the start-up, usually post-incubation and even without incubation. In most cases, this capital serves as funding for startups to streamline their business model before scaling up. Incubators serve as a vehicle to support entrepreneurs in developing their business model. They support start-ups in early stages of the business, sometimes even during the ideation stage. They provide resources including office spaces and access to mentors and investors. In some cases, incubators may provide initial funding to support the startup with product development. By 2023, there were more than 700 incubators in India, only behind USA, but the number of incubators per 1000 start-ups are more in India than in the USA. Even during the funding winter in 2023, incubators continued to fund early-stage start-ups, and ticket sizes didn’t reduce significantly
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Student Project Vikram Sarabhai Library Reference Students Project SP2024/3901 (Browse shelf(Opens below)) e-Book - Digital Access SP003901

Submitted by Yash Jain
Shivansh Tripathi

To incubate or not to incubate? In the history of starting up, we haven’t heard any startup saying they don’t want an incubator to help them. In fact, a lot of start-ups want incubators to help them early in their life, but has the start-up ecosystem ever asked the question if they should incubate or not? This is a question we seek to answer in the Indian context.

Start-ups are early-stage companies that eventually become bigger businesses if they continue to grow and sustain.

Venture capital funds are funds that provide capital in the early stages of the start-up, usually post-incubation and even without incubation. In most cases, this capital serves as funding for startups to streamline their business model before scaling up.

Incubators serve as a vehicle to support entrepreneurs in developing their business model. They support start-ups in early stages of the business, sometimes even during the ideation stage. They provide resources including office spaces and access to mentors and investors. In some cases, incubators may provide initial funding to support the startup with product development.

By 2023, there were more than 700 incubators in India, only behind USA, but the number of incubators per 1000 start-ups are more in India than in the USA. Even during the funding winter in 2023, incubators continued to fund early-stage start-ups, and ticket sizes didn’t reduce significantly

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