BANGALORE, March 6, 2014 /PRNewswire/ --
Start-up Firms Face the Heat Owing to Lack of Clear Strategy Between Management and Investors
The Indian Start-up Kaleidoscope
In recent years, the Indian market is witnessing the mushrooming of many tech start-ups, each a leader in their own niche space. However, intense competition in the tech space means only a few of these start-ups will survive after a few years. Industry experts believe that the main reason for the failure of major Indian start-up companies was not due to sparse demand or the absence of a cutting-edge product or service; it was as a result of the failure on the part of the management to plan ahead and strategize for what's coming next. Another major factor affecting most start-ups is the lack of mutual consensus between management and investors. See our coverage of the Indian start-up scenario by visiting
http://wallstanalyst.com/sense-x/market-mantra/1525-the-other-side-of-the-indian-start-up-story
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Funding - A Means to the End?
Most Indian start-ups start off with a novel idea or a new technology that requires a hefty amount of funding for the company to convert the raw ideas or the prototype product or service into a revenue-generating concept. Hence, most start-ups seek funding from venture capitalists or specialist funding bodies in the tech domain. However, a number of start-ups, in a bid to get to the top of the pack quicker and in a rush to gain the required funding for their ventures, give away more than they need to in terms of equity share to investors. The fallout of investors with preliminary strategy is that it could well leave management with a lower bargaining power during subsequent funding rounds, a move that can prove risky to their overall business operations. Please access this report by following the link below:
Management is Key to Solid Strategy
While investors need to be realistic about their exit strategies, they cannot be solely blamed for the failure of some Indian start-ups. The management also needs to chalk out a solid strategy in terms of execution and building a sustainable revenue stream. That said, in most instances, investors and entrepreneurs have varying, and many times conflicting, interests which impact the course of action to be taken to make best use of VC funds. In the recent past, in most cases, management's attention is drawn towards bigger and better revenue opportunities, which prevents them from focusing on their core product development. See more about the strategic plans of start-ups in the link below:
Bangalore emerging as India's analytical hub
Bangalore is considered as the analytics hub in India and was home to 29% of all Indian analytics firms in 2013. About 6% of analytics organizations worldwide are either based out of India or have operations in India. Moreover, over the past five years, Bangalore witnessed the entry of 591 tech start-ups, the highest in India. On the other hand, the city also registered the highest number of business closures.
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