Tuesday, December 04, 2007

Low Risk Low Gain India

According to a recent report [1], though the investments into India have increased substantially, a little of it actually reaches the early stage companies.

0ver 90% of the money is invested in late-stage initiatives by mature firms. Even the remainder mostly finances new firms replicating proven business ideas. As a result, very few innovative startups are funded. This will have a negative ripple effect on the quality of late stage opportunities in later years.

While US, UK and Israel spend nearly 30% of their investments into seed and early stage (29% in US, 39% in UK and 32% in Israel), India spends only 6.9%. China is better - it spends 12.5% of its investments in seed and early stage companies.

References:

1. Accessing Early-Stage Risk Capital in India, Rafiq Dossani, Stanford University, Asawari Desai, TiE Inc, Shorenstein, APARC, Standford, and TiE.

1 comment:

Mahesh said...

Sujai,

The wave of entrepreneurship should begin from academic institute.

Indian entrepreneurs are creating products from their saving from day job

Indian People scare of doing business by fantasizing what if i fail and no one gives me Respect if i fail.

I request you to write one Book about the ground reality of indian silicon valley.

You are the only one exploring the facts of indian silicon scenario.