Indian VCs, AIs and government to push Technology Start-ups

As of November 2014, Apple, Microsoft and Google remain ‘world’s most valuable brands’ with Apple leading the chart;there is no rocket science in comprehending how well you candrive your economy if you have the will and intellect to back technology, innovations and models that enhance customers’ way of living, promote commerce and augment not just marketing but also buyers’ enthusiasm to respond, buy and try new venues of retail purchasing. Nearly half of these most valuable brands globally, from the top 20, carry the tag ‘technology’. It is evident that companies like Google, Microsoft, IBM and others have not just revolutionized business models; they have also fuelled economies around the world and have been consistently originating newer concepts. Another fact is that most of these multi-billion dollar firms have their headquarters in the U.S., the world’s largest economy, with a currency that is used in almost every other cross-border transaction and is also world’s principal reserved legal tender.

Taxation, debt management, fiscal deficits and CADs all come post commerce comes into being, a requisite that drives any nation on its shoulders and is the source of fund flow to the exchequer, generation of employment prospects, bridging the gap between rich and poor, and of course development of national infrastructure. Steel, oil, coal and power were always the areas that made businesses rich, countries prosper and people find jobs. In India, companies like ONGC, Coal India, NTPC, Tata Steel and SAIL play the most decisive role in shaping GDP growth rate, but of late, corporations like Infosys, TCS, Wipro and HCL have taken a dominant share by delivering noteworthy net profit in their financial statements. Then there is a newly evolved concept, the e-commerce and other internet-based start-ups in India, owing to our hefty internet user base, which is the third largest in the world. Snapdeal, Flipkart, Olacabs and Quikr are a few names in this cluster and to the surprise of us all; these have entered the billion-dollar club in just a few years of their founding. Estimates say that the e-commerce market of India will reach USD 24 billion by this year.

Foreign-based VCs, Angel Investors and Private Equity (PEs)have backed the potential of technologically-accelerating India; investors ranging from Tiger Global and SoftBank to Morgan Stanley Wealth Management and Vulcan Inc. have funded Indian firms that are using technology as the key to revenue-generation. Among appreciators of IT- startups are Indian entrepreneurs, Azim Premji (Premji Invest) and Ratan Tata to name a few. It isn’t hard to interpret why IIT and IIM pass-outs these days are either getting absorbed in IT companies/ start-ups or are trying to reverse of trend of job-seeking after degree and are rather innovating novel concepts. Today, when every metro city commuter just needs a tap on the cellphone to call a taxi, to locate a nearby hotel/ ATM, to navigate through puzzling streets, and when online shopping platforms like Snapdeal are planning to set up kiosks in rural parts to help residents order products online, a shift in the sentiments of investors and consultants is the need of the hour.

Forbes has lately released a list of best venture capitalists. These are people/ firms who bet on creative minds and manage to secure outsized returns from their investments. In the list are 11 PIOs (Person of Indian Origin), and on the topmost position in the list is Jim Goetz of Sequoia Capital, the person who placed the golden bet on WhatsApp, the global messaging service. Indian investors, though haven’t made it that large that they would find place in the Forbes list, however names like Anupam Mittal (a co-investor in Olacabs and beneficiary of 25x returns in a span of just three years), Meena Ganesh (stakeholder in a Bangalore-based start-up and beneficiary of 7x returns in a span of 18 months) and Saurabh Srivastava (investor in Sapience and Stayzilla) have substantiated their aptitude. Let me also mention one of the most notable VCs with the Midas touch, Peter Thiel, the man who made a USD 500,000 angel investment in Facebook in 2004 and is today one of the richest VCs in the world.

The motive of this writing is to let Indian biggies know the real potential of the service industry, specially the one backed by technology. Banking, communication have seen a wide participation from Indian capitalists and risk-takers, but IT start-ups still remain an untapped area though one with promising returns on investment. Shares, debentures, mutual funds, property and gold have remained a passion for investors, why not go for a shift of sentiments towards what that has the caliber to not just fill your pockets, but also take country to newechelons of success. Why not an Apple, Facebook, Microsoft or WhatsApp from India? In the emotional call to back the manufacturing domain, let us not overlook the positive prospects of technology; with brains as established engineers, doctors, managers, VCs and angel investors around the world, this motive is not that tricky to attain. Government and capital market regulator, SEBI are to find ways that can boost startups to list on Indian stock exchanges with lenient listing regulations, amendments in norms like lock-in for a period of three years, requirement of identified promoter and use of issue proceeds.All in all, there exists an untapped opportunity for us all, let us make it big and money-spinning.

92 thoughts on “Indian VCs, AIs and government to push Technology Start-ups

  1. Rahul Gupta

    India is a country where beef gets banned, a female is blamed for cricket team’s loss so why and how can we expect innovation.
    Unless mindset of Indians will change, I am afraid nothing will change.

    Reply
  2. Sandeep Kapadia

    It all depends on your approach and talent.
    If something has to become big, it overcomes all hurdles.
    You know, flipkart and others are running in losses but they have changed the concepts of shopping.

    Reply
  3. Harsheen

    Sir have you ever backed any IT start-up?
    This is a critical question because you seem to be very positive in creating a brand IT India.
    I wish you good luck and better returns!!

    Reply
  4. Rajeev Singh

    I am very much worried about the valuations of these Indian start-ups and their sustainability. Many overseas investors are doubtful about their stake in Indian IT startups. Government should take care.

    Reply
  5. amarpreet kaur

    Snapdeal and Flipkart success is a rare example of IT start-ups in India.
    Actually the issue is that internet, internet-users, infrastructure in India are still in their very initial stages.
    USA and other countries have very fast internet speeds.

    Reply
  6. Amit buthia

    Venture Capitalists in India is a growing notion.
    Also we should know that VC and angel investors are different aspects, where former invests third party party while latter extends own money to project.

    Reply
  7. Rahul

    Risk involved in such investments is very high. You must be knowing that 8 or 9 out of 10 such start ups fail in the very initial years. I would prefer investing in debetures rather.

    Reply
  8. Shikha Sharma

    When we talk about Tata buying corus and Sun Pharma buying prominent drug manufacturer of US, we become proud.
    Same is to be promoted in our IT wing by easing acquistion and takeover norms.

    Reply
  9. Sonia Kapoor

    Alibaba, Uber have been violating laws in many countries and it is not sure where will the money of VCs and angel investors would land.
    This field is very risky and IT goof up cannot be ignored.
    Many would still remember the dot com bubble.

    Reply
  10. Hemant Sabarwal

    One thing that many people do not know about Apple and Facebook is that they reversed old trends like Apple sold premium smartphones which have become a status symbol.
    Indians to come up with such innovations.

    Reply
  11. Madhu Sudan

    Hi friends, nice piece of writing and good arguments commented at this place, I am in fact enjoying by these.

    Reply
  12. Ritesh

    I wish to say that this article is amazing, nice written and come with approximately all important infos. I would like to see more posts like this .

    Reply
  13. Deepak Kapoor

    Had a look through the site, it looks great and will be a big help in social and economic issues.

    Reply
  14. Vivek

    I am highly impressed with the think tank that you possess. I wonder how 1 man can have so much of knowledge

    Reply
  15. Sudhanshu

    Hello there! This blog post could not be written much better! Going through this article reminds me of my previous roommate! He constantly kept talking about this. I will send this information to him. Fairly certain he will have a very good read. I appreciate you for sharing!

    Reply
  16. Raj

    It’s an amazing piece of writing designed for all the online visitors; they will get benefit from it I am sure.

    Reply
  17. S.K. Arora

    I am genuinely glad to glance at this webpage posts which consists of tons of useful facts, thanks for providing such statistics.

    Reply
  18. P. Paresh

    I started to read your article and it caught me to the extent that I couldn’t put it down. Amazing piece.

    Reply
  19. Ajai

    I visit daily a few web sites and sites to read articles or reviews, however this blog provides feature based articles.

    Reply
  20. Kaushal

    I wish to state my complements to the hard work you have done to incorporate so much of detail about every information.

    Reply
  21. M. L. Rawat

    It’s hard to find experienced people for this subject, but you seem like you know what you’re talking about!

    Reply
  22. Pradeep Sagar

    I really like what you’ve acquired here, really like what you’re saying and the way in which you say it. You make it enjoyable and you still care for to keep it smart.

    Reply
  23. A.R. Sinha

    These are in fact enormous ideas in concerning blogging. You have touched some nice things here. Any way keep up writing.

    Reply
  24. O.P. Batra

    I should be leaving this one liner for your hard work “Great knowledge and good command over writing. Long way to go!”

    Reply
  25. Murli Manohar

    A fascinating discussion is worth comment. I do believe that you need to publish more about this subject, it may not be a taboo subject but typically folks don’t discuss these subjects. To the next! Many thanks!!

    Reply
  26. SubhashSaxena

    This is a great tip especially to those new to the blogosphere. Simple but very precise information… Many thanks for sharing this one. A must read post!

    Reply
  27. Sandeep

    I like the valuable information you provide in your articles. I will bookmark your blog and check again here frequently. I am quite certain I will learn lots of new stuff right here! Best of luck for the next!

    Reply
  28. Lalit

    Your style is very unique compared to other people I’ve read stuff from. Thanks for posting when you’ve got the opportunity.

    Reply
  29. Vinit

    Way cool! Some very valid points! I appreciate you penning this write-up and the rest of the site is also very good.

    Reply
  30. Anuj

    Hi there everyone, it’s my first go to see at this site, and piece of writing is genuinely fruitful in favor of me, keep up posting these types of content.

    Reply
  31. Mukesh

    I am sure this piece of writing has touched all the internet viewers, its really really pleasant article on building up new weblog.

    Reply
  32. Pradeep

    Hi, I do believe this is an excellent web site. I stumbledupon it ;)
    Money and freedom is the best way to change, may you be rich and continue to help others.

    Reply
  33. Deepak Chawla

    The website is bright, clean, quick, easily navigable and all the links seem to work well. Moreover, the contents here in blog shape is really wonderful.

    Reply
  34. K. Kalwin

    Woah! Ι’mreallly enjoying tɦe template/theme οfthiѕ website. ӏt’s simple, yеt effective. Α lot of times it’s tough to ցet that “perfect balance” betѡeеn usability ɑnd appearance. Ӏ must sаy you’ve ԁone a amazing job ԝiththіs. In addition, tɦe blog loads extremely fast fоr me on Chrome. Outstanding Blog!

    Reply
  35. Subhash Bansal

    Rarely do I come across a blog that’s both educative and amusing, and without a doubt, you’ve hit the nail on the head.

    Reply
  36. Anandi

    Spot on with this write-up, I absolutely believe that this amazing site needs much more attention. I’ll probably be returning to read through more, thanks for the advice!

    Reply
  37. J. P. Dutta

    I need to to thank you for this wonderful read!! I certainly loved every little bit of it. I have got you book-marked to look at new stuff you post…

    Reply
  38. R.K. Arora

    I’ve learn several just right stuff here. Certainly price bookmarking for revisiting. I wonder how much effort you set to create such a fantastic informative web site.

    Reply
  39. Ram Prasad

    So good to find somebody with some unique thoughts on this subject matter. Really..thanks for starting this up.

    Reply
  40. Vivek

    It’s always exciting to read through articles from other authors and use a little something from other sites.

    Reply
  41. Pankaj Dheer

    This excellent website really has all the info I wanted concerning this subject and didn’t know who to ask.

    Reply
  42. Vikas

    Really..thanks for starting this up. This web site is one thing that is required on the web, someone with a bit of originality!

    Reply
  43. KamleshRawat

    I do agree with all the ideas you’ve offered on your post. They’re very convincing and can definitely work. Thank you for the post.

    Reply
  44. Aman

    I love looking through an article that can make men and women think. Also, thanks for allowing for me to comment!

    Reply
  45. DilipMavin

    Hi there to every one, it’s in fact a fastidious for me to go to see this website, it includes important Information.

    Reply
  46. patel prakesh

    This is very interesting, You are a very skilled blogger. I ave joined your rss feed and look forward to seeking more of your great post. Also, I have shared your website in my social networks!

    Reply
  47. Ramit Kharbanda

    Very valid points sir. Indian entrepreneurs have capability to create enterprises like Apple and Microsoft. Venture Capitalists should become more assuring of positive results at present times when we have a smartphone in every second Indian’s hand.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>