Startup Ecosystem Analysis Model
Startup Ecosystem Analysis Model
#### Purpose: To provide strategic guidance to new investors looking to invest in the Indian startup
ecosystem by analyzing data and visualizing which sectors, cities, and types of investments have the
highest potential
#### Project Importance: Examining this project helps new investors make more informed and strategic
decisions in the Indian startup ecosystem. Data-driven insights and visualizations enable investors to
minimize risks and capitalize on high-potential opportunities.
1.2. About the Datasets
- Dataset Descriptions: 'stocks_daily_prices.csv' / 'stocks_daily_returns.csv.
In [47]: df0=pd.read_csv('startup_funding.csv')
df=df0.copy()
(3044, 10)
Out[48]:
Retailer of
baby and Sequoia
2 3 9/1/2020 Mamaearth E-commerce Bengaluru Series B 1,83,58
toddler Capital India
products
Online Vinod
3 4 2/1/2020 Wealthbucket FinTech New Delhi Pre-series A 30,00
Investment Khatumal
Embroiled Sprout
Fashion and
4 5 2/1/2020 Fashor Clothes For Mumbai Venture Seed Round 18,00
Apparel
Women Partners
<class 'pandas.core.frame.DataFrame'>
RangeIndex: 3044 entries, 0 to 3043
Data columns (total 10 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 Sr No 3044 non-null int64
1 Date dd/mm/yyyy 3044 non-null object
2 Startup Name 3044 non-null object
3 Industry Vertical 2873 non-null object
4 SubVertical 2108 non-null object
5 City Location 2864 non-null object
6 Investors Name 3020 non-null object
7 InvestmentnType 3040 non-null object
8 Amount in USD 2084 non-null object
9 Remarks 419 non-null object
dtypes: int64(1), object(9)
memory usage: 237.9+ KB
In [51]: df.describe(include="object").T
Remarks 86.24 %
Out[52]:
Amount in USD 31.54 %
SubVertical 30.75 %
City Location 5.91 %
Industry Vertical 5.62 %
Investors Name 0.79 %
InvestmentnType 0.13 %
Sr No 0.0 %
Date dd/mm/yyyy 0.0 %
Startup Name 0.0 %
dtype: object
In [60]: # 86.24% of the 'Remarks' column consists of empty values, so we remove this line
df.drop('Remarks', axis=1, inplace=True)
In [61]: # Replacing 'Bengaluru' used in the data set with the more common name 'Bangalore'
df['City Location'][df['City Location'] ==
'Bengaluru'] = 'Bangalore'
In [62]: # Change the name in the 'Undisclosed investors' column to 'Undisclosed Investors'
investor_replace_map={
'Undisclosed investors': 'Undisclosed Investors',
'Undisclosed Investor': 'Undisclosed Investors',
'undisclosed investors': 'Undisclosed Investors',
'Undisclosed': 'Undisclosed Investors'
}
df['Investors Name']=df['Investors Name'].apply(lambda x:investor_replace_map.get(x,x))
In [65]: # Standardizing common industry terms using regex and string replacement
replacements = {
r'\be[ -]?commerce\b': 'e-commerce',
r'\bfintech\b': 'fintech',
r'\bhealth[ -]?tech\b': 'healthtech',
r'\bedu[ -]?tech\b': 'edtech',
r'\bfood[ -]?(tech|delivery)\b': 'food & beverage',
r'\btransportation|logistics\b': 'transportation & logistics',
r'\bconsumer internet\b': 'consumer internet',
r'\btechnology\b': 'technology',
r'\bagri[ -]?tech\b': 'agritech',
r'\bauto[ -]?tech\b': 'autotech',
r'\bmedia\b': 'media',
r'\bfinance\b': 'finance',
r'\bunknown\b': 'other'
}
# Applying replacements
for pattern, replacement in replacements.items():
df['Industry Vertical']=df['Industry Vertical'].str.replace(pattern, replacement,reg
0 2020-01-09 202001.0
1 2020-01-13 202001.0
2 2020-01-09 202001.0
3 2020-01-02 202001.0
4 2020-01-02 202001.0
In [68]: df.head()
Retailer of
baby and Sequoia
2 3 2020-01-09 Mamaearth E-commerce Bangalore Series B 183588
toddler Capital India
products
Online Vinod
3 4 2020-01-02 Wealthbucket FinTech New Delhi Pre-series A 30000
Investment Khatumal
Embroiled Sprout
Fashion and
4 5 2020-01-02 Fashor Clothes For Mumbai Venture Seed Round 18000
Apparel
Women Partners
Economic cycles, investor sentiment, and macroeconomic factors might be influencing these variations.
Large funding rounds or significant investments in specific years can cause surges.
Peak funding:
months differ across years, suggesting that specific events or investments may influence funding
activity.
Funding Spikes:
Substantial surges in funding can be explained by large investment rounds or prominent startups
receiving funding.
Analysis Insight:
This examination provides a clear picture of how funding is dispersed throughout the year, emphasizing
significant periods of investment activity.
Online
651 652 2017-08-11 Flipkart eCommerce Bangalore Softbank Private Equity 2.500
Marketplace
Microsoft,
ECommerce eBay,
966 967 2017-03-21 Flipkart eCommerce Bangalore Private Equity 1.400
Marketplace Tencent
Holdings
Mobile
Wallet & SoftBank
830 831 2017-05-18 Paytm ECommerce Bangalore Private Equity 1.400
ECommerce Group
platform
Vijay
Mobile
31 32 2019-11-25 Paytm FinTech Noida Shekhar Funding Round 1.000
Wallet
Sharma
Steadview
Online Capital and
2648 2649 2015-07-28 Flipkart.com NaN Bangalore Private Equity 7.000
Marketplace existing
investors
Alibaba
2459 2460 2015-09-29 Paytm E-Commerce NaN New Delhi Group, Ant Private Equity 6.800
Financial
Private
188 189 2018-08-30 True North Finance Mumbai NaN Private Equity 6.000
Equity Firm
Baillie
Gifford,
Car Falcon
2244 2245 2015-11-18 Ola NaN Bangalore Private Equity 5.000
Aggregator Edge
Capital,
Tiger Gl...
Hyderabad
Angels (at
3020 3021 2015-01-19 Enabli unknown NaN NaN Startup Seed Funding 16000.0 u
Heroes
event)
Hyderabad
Angels (at
3021 3022 2015-01-19 CBS unknown NaN NaN Startup Seed Funding 16000.0 u
Heroes
event)
Hyderabad
Angels (at
3019 3020 2015-01-19 Yo Grad unknown NaN NaN Startup Seed Funding 16000.0 u
Heroes
event)
Hyderabad
Angels (at
Play your
3018 3019 2015-01-19 unknown NaN NaN Startup Seed Funding 16000.0 u
sport
Heroes
event)
Hyderabad
Angels (at
3017 3018 2015-01-19 Hostel Dunia unknown NaN NaN Startup Seed Funding 16000.0 u
Heroes
event)
Group of
2933 2934 2015-02-02 Faaya unknown NaN NaN Angel Seed\\nFunding 16600.0 u
Investors
Group of
2934 2935 2015-02-02 InstaBounce unknown NaN NaN Angel Seed\\nFunding 16600.0 u
Investors
Group of
Chloroplast
2935 2936 2015-02-02 unknown NaN NaN Angel Seed\\nFunding 16600.0 u
Foods
Investors
Group of
2936 2937 2015-02-02 Dealwithus unknown NaN NaN Angel Seed\\nFunding 16600.0 u
Investors
Group of
2937 2938 2015-02-02 CleverSharks unknown NaN NaN Angel Seed\\nFunding 16600.0 u
Investors
Active Sectors: Consumer Internet and Technology sectors are highly active in terms of funding rounds.
High Investment Sectors: E-commerce and Consumer Internet attract the highest total funding,
reflecting investor confidence and market potential in these sectors.
Industry Dynamics: The analysis highlights which industries are more preferred by investors and which
sectors secure larger investments.
plt.figure(figsize=(14, 8))
for industry in top_industries_list:
plt.plot(yearly_industry_count.index, yearly_industry_count[industry], marker='o', l
plt.title('Number of Startups Founded Over Time by Industry')
plt.xlabel('Year')
plt.ylabel('Number of Startups')
plt.legend()
plt.grid(True)
plt.show()
Output:Top 5 Industry Choice Analysis
Consumer Internet:
Peak in 2016: The number of consumer internet startups saw a significant peak in 2016 with over 500
startups founded. Sharp Decline: After 2016, there is a sharp decline, indicating a reduction in new
consumer internet startups over the subsequent years. Technology:
Steady Growth and Decline: Technology startups grew steadily, peaking in 2016 with around 200 startups,
followed by a decline similar to the consumer internet trend. Consistency: Despite the decline, the number
of technology startups remains relatively consistent compared to other industries.
E-Commerce:
Initial Growth: E-commerce startups showed initial growth, peaking in 2016 with about 150 startups.
Gradual Decline: There is a gradual decline after 2016, but not as steep as the consumer internet sector.
Healthcare:
Stability: The healthcare industry shows relative stability with slight fluctuations, peaking modestly in 2016
and maintaining a lower but consistent presence.
Insights
2016 as a Pivotal Year: Most industries, especially consumer internet, technology, and e-commerce, peaked
in 2016. This indicates a significant year for startup formations across these sectors. Post-2016, there is a
noticeable decline in new startup formations, which could be due to market saturation, changing investment
climates, or shifts in entrepreneurial focus.
Consumer Internet and Technology Leading: These two sectors have the highest peaks, indicating high
interest and investment in these areas during their peak years. The sharp decline post-2016 suggests
potential over-saturation or a shift in investor interest.
Steady but Low Growth in Healthcare: Healthcare startups show steady but lower growth compared to other
sectors, suggesting a more stable but less explosive industry.
Mumbai and New Delhi's high ranks underscore their importance in the Indian startup ecosystem. Mumbai's
financial prowess and New Delhi's political and incubator support contribute to their strong startup cultures.
Cities like Gurgaon, Pune, and Hyderabad show significant numbers of startups, indicating the
diversification of the startup ecosystem beyond the primary hubs. These cities offer favorable conditions
such as talent availability, infrastructure, and government support.
Regional Clusters:
The presence of multiple cities from the National Capital Region (NCR) like New Delhi, Gurgaon, and Noida
highlights the region's attractiveness for startups. Proximity to the capital and good connectivity are key
factors.
The distribution of startups across these cities suggests that supporting infrastructure, educational
institutions, corporate presence, and government policies play crucial roles in fostering startup growth.
Conclusion
The chart indicates that location significantly influences startup growth. Cities with strong ecosystems,
infrastructure, and support systems tend to have higher concentrations of startups. Understanding these
dynamics can help stakeholders, including investors, entrepreneurs, and policymakers, make informed
decisions about where to focus their efforts and resources.
plt.figure(figsize=(14, 7))
plt.barh(top_investors['Investor'],
top_investors['Number of Investments'],
color='#4878A2')
plt.xlabel('Number of Investments')
plt.ylabel('Investor')
plt.title('Top 10 Investors in Indian Startup Ecosystem')
plt.gca().invert_yaxis()
plt.show()
In [79]: # Extract the most active startup founders (this is a simplification)
# Split multiple founders in a single row (assuming founders are listed in 'Startup Name
df['Founders'] = df['Startup Name'].fillna('Unknown').str.split(',')
Retailer of
baby and Sequoia
2 3 2020-01-09 Mamaearth E-commerce Bangalore Series B 183588
toddler Capital India
products
Online Vinod
3 4 2020-01-02 Wealthbucket FinTech New Delhi Pre-series A 30000
Investment Khatumal
Embroiled Sprout
Fashion and
4 5 2020-01-02 Fashor Clothes For Mumbai Venture Seed Round 18000
Apparel
Women Partners
Seed Funding: Second Most Common: Seed Funding is close behind Private Equity, with a similar
number of instances. This suggests that many startups are in the early stages of their lifecycle, seeking
initial capital to develop their ideas and products.
Seed / Angel Funding: Early-Stage Investments: Seed / Angel Funding is also prominent, with a
significant number of instances. This type of funding is crucial for startups to get off the ground and
demonstrates the active role of angel investors in the ecosystem.
Diverse Funding Landscape: The chart demonstrates a diverse landscape of funding types, from early-
stage seed funding to later-stage private equity. This diversity is crucial for catering to the varying
needs of startups at different stages of their growth.
Importance of Early-Stage Funding: The high frequency of Seed Funding and Seed / Angel Funding
underscores the importance of early-stage investments in nurturing new startups. These funding types
are critical for startups to develop their initial ideas and products.
Private Equity's Dominance: The dominance of Private Equity highlights the significant role of large-
scale investments in the startup ecosystem. It suggests that many startups in the dataset have
achieved substantial growth and maturity, making them attractive targets for private equity investors.
Growth Funding Rounds: The presence of Series A, B, C, and D funding rounds, although less
frequent, indicates a structured path for startups to secure additional capital as they grow. Each
subsequent round typically involves larger amounts of funding and is aimed at scaling the business.
Role of Debt Funding: While less common, Debt Funding provides an alternative financing route for
startups. This can be particularly useful for startups that want to avoid equity dilution or have specific
capital requirements that debt can fulfill