Indian startup creators and entrepreneurs endure enormous funding from Australia, Japan and China but why do we not hear more of domestic investment from our wealthy?
Moreover, India ranks third on the list of emerging startup power hubs. India hurls with an outstanding record of designing more startup models than any other country in the world. In 2019, international funding raised to about $5 billion across various startup sectors. Hence, Indian investors must step in and mould the idea of an Aatmanirbhar Bharat.
India currently has 30 unicorns (turnover over $1 billion) startups out of which China is a major investor in 18 of the lot. Other companies have their root investors in other foreign countries. As we gaze down the border tensions with exclusive investors of our country, the clock clicks for home investment to design an ambitious and self-reliant country.
At the excruciating phase of globalization and export-import opportunities, India is on the edge for confidence and support from the wealth powers of the country. However, why do domestic investors shun the idea of investing in a new idea or startup?
In the article, let’s lay efficient light on the issues potential investors tackle the idea of colossal investments.
The moral and values conditioned in the mindset of an Indian is an equal correlative that bides major investments in growing ideas. Over the years of not believing in the concept of risk in terms of business, people play it safe and invest according to convenience in plots, gold and etcetera.
A necessary and vital transformation with existing and budding investors is on the countdown click. Efficient and quick actions are required to meet the needs of the hour.
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Enlarged Gap Between Investors and Startups
The vigorous landscape of startups in India is not under the radar and many times go unnoticed. With only a handful of companies running funding, rounds are not sufficient for the growing ability of Indian startup sector.
Many potential ideas are unnoticed or misunderstood with only a few options to cater to. Hence, a centralized investment funding from all investing prospects and startups should come under an umbrella and enlighten the dark walkthrough towards self-reliance.
India Does Not Work At Par With the Globe
Domestic investing in foreign countries is quite higher as compared to India. Global startups successful for raising sufficient funds in grocery tech, healthcare and consumer healthcare, the smartphone is 41%, 52% and 36% respectively.
However, India for the same startup sectors and funding stands at 5%, 10% and 11%. The declined and unheard importance of startups is highly prevalent with Indians. Hence, enlightenment is a necessary tool to trigger domestic investment rates.
Lack of Flowing Cash Post Investment
Though HNI (High Networth Individuals) are economically strong to invest but the lack of flowing cash post the investment is a defendable question. This is a core factor for investors to step back from the idea of bulk investment.
What can be done?
Well, the abandoned idea of investment can be revoked with a few smart moves. With lost support from China in the recent events, we need to hunt for options that mould the future of the startup ecosystem.
Incubators for All Niches
Startup incubators of tech-startups are on the rise. But for the holistic growth of India, we need incubators from all niches. Hence, an evident increase of incubators for startups from suppressed niches should be on the roll.
Transparent Communication For Both Parties
The diluted communication modes fro startups to reach potential investors hinders the startup ideas to a vast aspect. Hence, a centralized or increase in communication modes for investors and startups in the need of the hour.
India is in dire need of domestic investment in the light of COVID-19 and border tensions. Government aid and industry push to glorify the startup front can prove fruitful to empower the weakened economy.