The Indian startup ecosystem seems to be on a roll. It is growing at a pace that no one expected. According to data revealed by a recent report by NASSCOM, the total number of technology startups in India is expected to cross the 11,500 mark by 2020. This growth in the startup ecosystem has led to the opening of a number of avenues for these startups to accelerate their growth at high pace. This year has witnessed the launch of a number of startup accelerators and incubators to support these new companies.
Keeping in line with the trend, the Indian Angel Network has announced a new startup incubator in Mumbai. The incubator in all probability will be operational by next week. The 3,600 sq-ft incubator could possibly be the second largest standalone incubator in Mumbai, only after Indian Institute of Bombay’s Society for Innovation and Entrepreneurship that is spread over 10,000 sq-ft.
This will perhaps be the first incubator ever to be backed by angel investors. The startups will be provided with market access and mentoring support and efforts will be made to make them investment ready.
Indian Angel Network plans to incubate 10 startups initially for a period of 4-9 months in areas including mobile applications, medical devices, manufacturing, analytics and Internet of Things (IoT), healthcare technologies and newer technologies like cloud computing etc. The Network has plans of incubating just 10 startups initially in the first quarter.
“We have always brought high-quality mentoring and functional expertise to startups. We are now trying to build a high-traction physical incubator, making it as a hub for entrepreneurs in the western region. The incubator will become a one-stop shop for startups to be incubated, make them investible companies and raise money leveraging IAN’s network. It is a big endorsement of IAN’s mentoring capabilities that some of the startups are able to raise angel money in 3-7 minutes,” said Padmaja Ruparel, president of Indian Angel Network (IAN).
IAN is Asia’s largest angel investor network with over 300 investor from across 10 countries. Its angels include Google India MD Rajan Anandan and Accenture India MD Avinash Vashishtha. It has funded over 40 deals, investing close to $30 million. The angels invest a minimum of Rs.25 lakh and up to Rs. 5 Crore from a smal stake in a company or a startup.
In Bangalore last year, NASSCOM and the government set up a Startup Warehouse, a co-working space for entrepreneurs that’s currently an 8,000 sq.ft. facility with 28 startups. This will be expanded to 50,000 sq.ft. to accommodate 500 entrepreneurs in the coming weeks. Selected startups can take space for six months at a nominal rent per seat. Microsoft, Kyron and Intuit-GSF are others who have created startup incubator spaces in the city.