What is a Startup?

1. A organization designed to search for a

repeatable and scalable business
model (Steve Blank)

2. A human institution designed to deliver

a new product or service under
conditions of extreme uncertainty (Eric
Ries, The Lean Startup)

3. A startup does not mandate a specific

technology component, instead the
defining characteristic of a startup is it
innovative and growth-oriented
nature, regardless of whether is the
technology is the primary driver or
an integral part of its operations
(*not all startup are technology-
driven)

4. For startup innovation must be in their

products/service or in the business
model. **There are 99,380 startups in India as of July, 2023**
 Activities of Indian Startup Ecosystem

• India has seen multiple startup waves since 1980s.

• The first startup wave (1995-2004) started with information technology, computer
hardware and software focused companies seeded in India and becoming global
corporations.
• The second wave (2005-2010) was driven by Internet boom, and several consumer Internet
companies were started. Eg. Info Edge India, Bookmyshow.
• The third wave started in (2011-2015) with graduates from IITs and IIMs having experience
in companies such as Amazon and Mckinsey starting companies such as Policybazar,
InMobi, and Quikr, with the increasing penetration of smartphones, availability of high-
speed Internet, and an increase in Internet data consumption. This period saw the rise of e-
commerce startups.
• The fourth wave (2016-2019) is the serial entrepreneurial initiatives of the ex-founders of
previous waves and new startups using deep technologies
 Sector-wise Categorization of Indian Startups
• Mature sectors: Fintech, Enterprise, Retail and Retail tech, and Health tech

• Emerging sectors: Supply-chain management and logistics, Edtech, Media and entertainment

• Nascent sectors: Aerospace and defense, Industrial and manufacturing, Agritech, Energy and
Utilities.

*The sectors which had seen more than 50% growth between 2014 to 2019 were Edtech,
Fintech, Mobility, Automotive, and Health Tech. Agritech was expected to be one of the high
growth sectors soon.

* Close to one-fifth of the startups are leveraging deep technologies—Artificial Intelligence and
Machine Learning, IoT, Big Data and Analytics, Blockchain, AR/VR, Drones, Robotics, 3D printing,
virtualization, and cybersecurity.
Supporting Infrastructure: Incubators, Accelerator
Snapshot of Some Incubators and Accelerators in
India

Corporate Independent Academic Government Supported

 CISCO Launchpad  Indian Angel Network  10000startups

 Microsoft incubator  Sine (IIT Mumbai) (Bengaluru)
Scaleup  Villgro  CIIE (IIM Ahmedabad)  T-hub (Hyderabad)
 Google  GSF  NRSCEL (IIM  Icreate (Ahmedabad)
Launchpad  Tlabs Bangalore)  iStart Nest Incubator
 JioGenNext  Venture Nursery  INFUSE (IIM (Rajasthan)
 Maruti Suzuki  Prime Venture Ahmedabad)  Kerala Startup Mission
MAIL Partners  iTIC (IIT Hyderabad)  Dalmia smart city
accelerator
Top-10 Angel Investors in India

# of companies in
Angels Portfolio Representative start-ups
Rajan Anandan 95 Druva, Unacademy, Innovaccer, Cappilary, Dunzo
Anupam Mittal 61 Ola, Druva, Rapido, Rupeek, Whatfix

Anand Ladsaria 53 Reverse Logistics, Wow Momo, Stayzilla, Appsdaily, Unbxd

Kunal Bahl 49 Ola, Snapdeal, Urbanclap, Housing.com, Razorpay
Kunal Shah 48 Unacademy, razorpay, Shuttl, Rupeek, Spinny
Raman Roy 46 Wow Momo, Stayzilla, Box8, Unbxd, FabAlley
Kris Gopalkrishnan 43 Firstcry, Lenskart, cure.fit, Acko, MedGenome
Rohit Bansal 41 Ola, Snapdeal, Urbanclap, Housing.com, Razorpay
Ratan Tata 40 Ola, Snapdeal, Paytm Mall, Firstcry, Car Dekho
Vikas Kuthiawala 40 Loginext, Wow Momo, Stayzilla, Box8, peel-works
 Top-10 Venture Capital Investors in India

# of companies in
VCs portfolio Representative startups
Brand Capital 450 Snapdeal, Byju's Bigbasket, Quikr, Fassos
Sequoia Capital 215 Ola, Oyo Rooms, Byju's, Grofers, Zomato

Blume Ventures 153 Ola, Zomato, Unacademy, GreyOrange, Dunzo

Accel 148 Flipkart, Ola, Swiggy, Freshworks, Cure.fit
Village Capital 134 Simpa Networks, Doubtnut, Siksha Finance, Ftcash, Cashfree
Axilor Ventures 114 Sigtuple, Pocket Aces, Niramai, Urban Piper, Vyapar
Billdesk, Fourcee Infrastructure, Manthan Retail, EASF Bank, EASF
SIDBI Venture Capital 102 Microfinance
SAIF partners 101 Paytm, Swigy, Paytm Mall, Firstcry, Rivigo
Matrix Partners 93 Ola, Zomato, Quikr, Mission Electric, Five Star Business Finance
Kallari Capital 80 Snapdeal, Cure.fit, Vogo, Medplus, Urban Ladder
Recognizing Opportunities and Idea Generation
Sources of New Ideas

2.
Existing
1. Product
Consumers and
Services

3.
Distribution 4. Government
Channel
Nontraditional Method of Generating Ideas

2. Visit new
1. Read
places and
Alternative experience
Literature new things

3. Meet
thought 4. Team Up
leaders
Method of Generating Ideas

1. 2.
Brainstormi Brainwri
ng ting

3. Free
Associat 4. Checklist
ion Method

6.
5. Reverse Forced
Brainstor- Relation
ming ship
1. Brainstorming 2. Brainwriting

It is a form of written brainstorming by giving

A group method for obtaining new
participants more time to think. It’s a silent,
ideas and solution. This process
written generation of ideas by a
has a greater likelihood of
group/individual. The participants write their
occurrence when the
ideas on a special form or cards that circulate
brainstorming effort focuses on a
within the group. Each group member
specific product/market area. No
generates and writes down 3 ideas during a 5
criticism is allowed, but wilder he
min period. The form is passed to next
idea the more its better
individual who writes down another 3 ideas,
 3. Free 4. Reverse
Association Brainstorming
Developing a new idea through a chain of
A group method for obtaining new ideas
word associations. First, a word or phrase
focusing on the negative, where
related to the problem is written down,
criticism is allowed. The technique is
then another and another word, with each
focused on finding fault by asking
new word attempting to add something
questions such as “ In how many can
new to the ongoing thought processes.
this idea fail’?, which is followed with a
This process may create a chain of ideas
discussion of ways to overcome these
ending with a new product/service.
 5. Checklist Method

1. Adapt?- What else is like this? What other ideas does this suggest? What could I imitate?

2. Modify?- New Twist? Change Meaning, Colour, Motion, Odour, Form, Shape? Oher Changes?

3. Magnify?- What to add? Greater Frequency? Stronger? Larger? Extra Value? Plus

ingredients? Multiply?

4. Minify?- What substitute? Smaller? Miniature? Shorter? Omit?

5. Substitute?- Who else instead? What else instead? Other material? Other process? Other

power? Other process? Other place? Other approach?

6. Rearrange?- Interchange components? Other pattern? Other Layout? Other sequence?

7. Reverse?- Turn it backward? Turn it upside down? Reverse Roles? Turn Tables?
 6. Forced Relationship

Elements: Paper and Soap

Forms Relationship/Combination Idea/Pattern

Adjective Papery Soap Flakes

Soapy Paper Wash and Dry Travel Aid
Noun Paper Soaps Tough Paper impregnated with soap and
usable for washing surfaces

Verb-Correlates Soaped Papers Booklets of Soap Leaves

Soap “wets” Paper In coating and impregnation process
Soap “ Cleans” Paper Suggests- wallpaper cleaner
THREE WAYS TO IDENTIFY
OPPORTUNITY
There are three approaches entrepreneurs use to identify an opportunity their new
venture can choose to pursue:
A. OBSERVING TRENDS

State of Economy, Consumer

Spending Patterns
• Economic Forces (e.g Rise in personal
income)
Social and Cultural trends,
Demographic Trends Product/Service Gap
• Social Forces (e.g Increased interest in [Difference between New Business
fitness and health) what’s available and Ideas
what’s possible
New & Emerging technologies, New
uses of old technologies
• Technological Advances (e.g
Shrinking size of chips,
wearable tech, Gadgets)
New laws and Regulations
• Political and Regulatory Chances

The first approach to identify opportunities is to observe trends and study how they create opportunities for entrepreneurs to
pursue.
 B. SOLVING A PROBLEM C. FINDING GAPS IN THE MARKET
PLACE

The second approach to identify opportunities is

 Gaps in the marketplace are the third source of
to recognize problems and find ways to solve
them. business opportunities.
 Problems can be recognized by observing the There are many examples of products that
challenges that people encounter in their daily consumers need or want that are not available
lives. in a particular location or are not available at all.
The Opportunity Register
Business Concept: Short Description Your Input

Possible Upside: What might be the concept generate in revenue/profit terms

Related Trends: This is a place to jot down any material numbers/operations that you may have

Obstacles and Barriers: What might stop you from grasping the opportunity

Position: What competencies, skills, or resources might take this a good opportunity to you?

Competition: Who is likely to contest this opportunity and what they are likely to do?

Sources: Where did you get your information?

Timing: How long is the window of opportunity? How quickly must you pursue it?
 Things to Consider while improving a Product/Service

Customer
Cost
Delivery Process Location Experience
(WYZE HOME
(UBER) (DIDI) (STARBUCKS)
SECURITY CAMERA)
Idea is not the same as Opportunity. You
generate ideas by thinking creatively
Opportunities are ideas
that have creative
potential, addressing
unmet consumer needs
 General Information Sources: Business
Portal of India

1. The Ministry of Micro Small Medium Enterprises

2. The Technology Innovation Management and Entrepreneurship Information Service

3. Indian Institute of Entrepreneurship

4. National Institute for Entrepreneurship and Small Business Development

5. The Indus Entrepreneurs

6. Entrepreneurship Development Institute of India

7. Confederation of Indian Industry

8. Yourstory.com
 Industry and Market GENERAL INFORMATION SOURCES
Information

1. Plunkett provides industry data, market research, 1. The Ministry of Micro Small Medium
trends and statistics on markets, and forecasts. Enterprises
2. Frost and Sullivan provides very industry specific 2. Confederation of Indian Industries
information.
3. Business Service Completion
3. Euromonitor provides information on companies
and brands as well as consumer market sizes and 4. Dataguru
marketing parameters.
5. PrivCo
4. Gartner provides information on technology
markets. 6. The Indus Entrepreneurs

5. Indiastat.com good sources of data on Indian

7. The Technology Innovation Management and
Demographics and statistical data Entrepreneurship Information Service
8. Yourstory.com
9. NASSCOM