Startup Tweets, Funding Deals – Weekly Oct.23 thru Oct.29, 2016

Startup Tweets, Funding Deals – Weekly Oct.23 thru Oct.29, 2016

indiastartup-diwali-card

Startup Tweets:

As many as 1,400 startups have come up in India this year, allowing it to maintain its position as the 3rd largest startup base in the world.

Reserve Bank of India’s move to allow 100% foreign direct investment-FDI will benefit fintech startups as it will ease equity-funding norms.

Tech startups are tying up with brick-and-mortar publishing houses to use Augmented-Reality and VR to bring textbooks and lessons to life.

South African internet conglomerate Naspers is on the hunt for investment deals in Indian fintech firms/ startups.

Funding Deals:

Early-stage fund India Quotient has invested $500,000 in fintech lending startup CreditMate.

Invoice discounting marketplace KredX has raised close to $6 million in Series-A funding led by Sequoia Capital India.

Renewable-energy solutions provider Ezon Energy has raised ₹140 cr ($21 million) from Japanese investor Natori Nohisa.

Hero MotoCorp, India’s largest 2-wheeler mfrr. is investing ₹205 cr ($30.6 million) in Electric-Vehicle startup Asther Energy.

Mergers & Acquisitions:

American technology firm IBM has acquired Bengaluru-based Sanovi Technologies for an undisclosed sum to bolster its cloud offerings.

Amazon Eurasia Holding to acquire Tata Group’s publishing co Westland for ₹39.8 crore ($600,000).

eLearning:

Infonomics: concept used by enterprises, organisations that allows accounting for data/information like any other valuable asset.

Startup Gyan:

Today, 5 people in a new startup can not only change a country, but the entire world.  ~Mukesh Ambani, Chairman -Reliance Group

Entrepreneur Wisdom:

Formal education will make you a living; self-education will make you a fortune. ~ Jim Rohn

Promotion:

Instantly cut-down on your current advertising-costs by 20% or more in India, Bangladesh, China, Nepal, Sri Lanka and South-East Asia! Check out:  www.processmediabuying.com

Startup Tweets, Funding Deals – Weekly

Sunday Oct.16 thru Saturday Oct.22, 2016

refuse-to-be-defeated

Sunday Motivation:  You should refuse to be defeated!!

Startup Tweets:

Chennai – India has about 1,181 startups with total $16.65 million funding (11 rounds) received from Jan. to June 2016.

Customer-service software provider Freshdesk has acquired AI-based Chatimity a social-chat platform which integrates chat within mobile-apps.

Accelerators, incubators specializing on fintech startups from all over the world are increasingly coming to India to encash the fintech gold-rush.

There’s revolution brewing in edtech space; few startups are silently building products in hard-to-crack B2B space.

P2P lending cos. are in process of forming an association with an aim to create a fair practice code within the industry players.

Funding Deals:

C1Exchange – Real-time bidding platform for advertisers, publishers has received $8.5 million funding from Venture Labo, Mynavi Corp, NEC.

Postman – an HTTP client to test web services has received $7 million from Nexus Venture Partners.

Parenting related social discovery platform BabyChakra has raised undisclosed amount in Series-A funding from Seattle’s VC Round Glass partners.

Fintech startup – Finwizard Technologies which runs wealth-management app Fisdom has raised $1.1 million from Saama Capital.

Online Furniture rental co. Furlenco has raised ₹200 crore ($30 million) in funding through a mix of equity and debt.

Other Funding Deals: Deyor Camps -$500,000; Boxershorts -$37,500; SIBIA Analytics, Kidsstoppress, Maya, ShoeKonnect, ZipLoan, HealthBuds also received funding.

Elearning Tweets:

Joystick: is a piece of Hardware device that is used to control a mouse or a cursor. It is generally used for gaming purposes.

Accelerometer: a motion-detector that can tell how the device is being held. In health-apps the tech is used to detect movements

Startup Gyan:

Flaunt your failures, they might teach some one a lesson towards success. ~Harsh Mariwala

Check out:

processmediabuying.com to immediately cut-down your current advertising costs by 20% in India, Bangladesh, Nepal, Sri Lanka and neighboring countries.

The Funding Detox

The Funding Detox

2015 was the year of e-commerce with $40.4 billion funding and 1649 deals in Asia. 2016 is set to end with much lower funding and lesser no. of deals with $14.6 billion and 732 deals in the first half of the current year. According to global startup analytics firm CB Insights – India’s funding ecosystem saw a 46% fall in in the 4th quarter of 2015, compared to the previous quarter. Their latest report says funding to Indian startups dropped a further 60% in the second quarter of 2016.

funding4

But this ‘funding-detox’ is giving way to better startups – more space to grow. It isn’t stopping people from starting on an entrepreneurial journey and the investors too think there has never been a better time to start-up. Upside of funding drying up is that “hobby entrepreneurs” with nonsensical ideas are retreating and real entrepreneurs are getting a fair hearing.

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E-commerce was the top-funded category in 2015 but this year its the B2B products in the space of Artificial Intelligence (AI), Internet of Things (IoT), Edutech, Fintech, Machine-Learning, Robotics etc. IT trade association Nasscom’s Startup Warehouse has already received 2,700 applications in 8 months of this year as compared to 3,400 applications received in the whole of last year. They expect to receive 2,000 more applications in the remaining part of this year which is in fact pleasantly surprising.

startup-idea-funding

While the average age of the founders continued to be between 25 and 30 years; nearly 25% of Nasscom’s applications are from repeat entrepreneurs. Many entrepreneurs who failed in the previous venture have learnt from their mistakes and are trying again. This time they are more prepared and understand the product-market fit.

Various popular startup-accelerators too continue to see growth in the number of startups applying for their accelerator programs by as much as 80% this year. Axilor Ventures, Jaarvis Accelerator, Microsoft Accelerator, TLabs and others busy are hearing pitches from startups.

Accelerators have also noticed that the percentage of founders with startup experience has gone up so there is a certain level of maturity in the market. The ecosystem has developed, the entrepreneurs know what products to build. For accelerators it is a good target group where the founding team has two to four years of prior startup experience. Second and third-time entrepreneurs are tackling bigger problems and building deeper technology products.

As it seems – for entrepreneurs who have done their research well on their super-solid idea – a downturn is a good time to start up. And for investors – it is a great time to invest. The next six months are crucial as smart investors might take contrarian bets.

 

What to do when VCs come knocking at your door..?

startup-vc blogSo you’re a startup who has an amazing, unique solution that’s gonna hit the niche with a bang or has already taken the market by storm and is now “the talk of the town.” Obviously VCs also have, by now, heard about you and they come knocking at your door with bags full of money. What next..?

Here’s the checklist: First – You need to know about yourself, whether you’re a Bull or a Bear. Yes, like in the stock-market, there are people with different ways of looking at businesses. Check this out how different can be founders’ views about getting funded:

“Bootstarpping allows the founders to retain substantial skin in the game.” ~ Nemesh Singh, founder Appointy – bootstrapped for 7 years.

“It is like rocket fuel. You can expand at a faster rate with better access to great resources.” ~ Girish Mathrubootham, cofounder of Freshdesk.

growth hacking vc blog Next: Ask yourself – Am I getting funded too early or too much..? Why am I in such a rush to find a new boss who may be worse than the old boss (that is, if you’ve sacrificed a corporate job and a consistent pay-check to be an entrepreneur). Sometimes a VC-led intervention early in a startup’s journey may not be in the best interest of the venture.

  • The Benefits: VCs are an experienced lot – guys who’ve been there, done that. They’ve seen startups succeed and fail so they’re good at mentoring. While you might become emotionally attached to your venture; VCs bring in objectivity. OK you have a great idea but networking – which is a forte of of VCs – helps take the business ahead. You’re brilliant at ideating but when it comes to hiring the best talent, it is usually the experienced eyes of the VCs that can spot the right guy. A strong financial backing helps get acceptance among clients/ consumers. Finally, by buying into your startup, VCs are buying into an opportunity – as well as the downside. So you share your risk.
  • The Downsides: Every step you take, VCs will be watching you and they have the right to veto key decisions. VCs are not here for charity – their investments have a fixed time-frame so they will exit sooner rather than later. Too much capital ensures you hire too fast, pursue too many ideas, and spend massively on advertising, marketing and PR. Remember Rahul Yadav of housing.com’s nasty public spat with his VC? You can’t fire your VC but a VC can fire you. VCs have a lot on their plate and your startup is just one of their portfolio companies. So you don’t always get what’s promised. Lastly, you are backed by a VC, but statistically, you might fall as only 1 out of 10 startups that get money succeeds.

Take your call!!

Get your startup/ event featured in our next blog – absolutely free! Send an email to indiastartupblog.com@gmail.com and get an audience with our 6,000+ business followers – both international & national including those on Twitter, Facebook, LinkedIn.

 

 

 

Indian health-tech Startups – healing at half the global cost:

doctor for blog

 

It’s the sheer belief that the Indian healthcare sector needs disruptive ideas and the interest of the government that is inspiring entrepreneurs to enter and continue in health-tech or med-tech startup space, although it is quite different from other comparatively easy sectors.

Its not easy for a med-tech startup to get funding in the first place as it takes about a decade before it has a product that’s ready for the market and its only then Venture Capital (VC) firms can hope to make an exit. Most VCs are looking to exit after 5 to 7 years of investing in their ventures and that’s the reason why money flows easier to e-commerce than to health-tech.

Med-tech startups also need to get multiple regulatory approvals from the US and EU authorities before they can ship their products. Getting safety approvals can take years and there’s no domestic revenue till then, as most major hospital chains in India wait for global approvals. India’s regulatory authorities are not equipped to certify cutting-edge technology which is a big disadvantage.

But still entrepreneurs in Indian health-tech startups are busy being disruptive; building medical devices at a cost which is a third of what their global competitors are charging; focusing on high quality, portability and more importantly tailoring them for Indian hospitals including those in the remote areas.

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The Cardiac-care Opportunity: India has 64 million cardiac patients. 90% of them go to smaller hospitals which don’t have the capacity to do diagnostics. Even in urban India, 75% of clinics do not own Echo-Cardio-Gram (ECG) machines. So a patient with heart-condition or a heart-attack is first sent to a lab for ECG, then to a hospital for the report to be read and by that time the chances of survival dip to 20%. A startup – Tricog Health addressed this problem by connecting ECG devices on the cloud. So the moment a report is generated, the information is sent to a team of 16 doctors who send the diagnosis via SMS and a mobile app. Another startup Cardiac Design Labs has built a low-cost, wearable cardiac monitor, Mircam which aids initial diagnosis and sends alerts to doctors.

There are startups making drugs for oncology, arthritis, diabetes, metabolic disorders. Some are building medical devices including robotics at much lower costs – taking on global giants; despite lack of mentors, difficulty in raising funds.

The Numbers: There are around 120 startups in the medical technology space in India, which have received $117 million in funding till date.

Startup Focus (Free): The Forus Health‘s maiden product 3nethra screens for common eye-problems that can lead to blindness. It costs a 4th of what global giant Retcam does.

Event Focus (Free): The Medical Expo – Delhi (Pragati Maidan) from Sept.09 to Sept.11 ’16

Get your startup/ event featured in our next blog – absolutely free! Send an email to indiastartupblog.com@gmail.com and get an audience with our 6,000+ business followers – both international & national including those on Twitter, Facebook, LinkedIn.

 

 

IoT: where every object is connected to the internet!

IoT Blog Octopus

It all started with the ATM in the early 1970s, perhaps the first popular connected device. Today the opportunity to connecting objects over the internet or Internet of Things (IoT) is  worth over $650 billion with a projection of hitting $1.7 trillion by 2020, as per IDC.

The devices and objects that send and receive data over internet are going to transform the way we mange our lives and as per technology researcher Gartner’s forecast there will be 21 billion connected devices by 2020.

With an explosion in the number of connected devices and growth in Installed Base Segments along with a burst in spending and ever-increasing number of smartphones, there is massive potential for IoT at global level. The incremental revenue generated by IoT suppliers is estimated to reach $309 billion per year by 2020 says Peter Sondergaard, Gartner’s research chief. This growth opens up new business opportunities, as half will be attributed to new startups and 80% will be in services, not products. Manufacturing, healthcare and insurance are expected to lead the race.

IoT Blog PiP

According to Vinay Nathan, co-founder Altizon, IoT requires seven or eight disciplines, including embedded computing, middleware, big data, cloud, domain knowledge and business consulting to line up. As expected IoT has generated entrepreneurial interest in India too. Entrepreneurship & Venture Capital (EVC), an early stage investor has launched a $50 million unit to focus on IT. Qualcomm Ventures, the VC arm of the global chipmaker, recently unveiled $150 million India Fund and made its first investment in healthcare IoT venture – Attune Technologies.

Word of caution: Startups looking to create a buzz in the IoT sector can expect to deal with an assortment of industrial and technology heavyweights including Google and IBM as everyone from GE to Honeywell and Samsung has invested billions of dollars to build and buy their way into a larger IoT presence.

However, industry experts and entrepreneurs think startups have a better chance of succeeding. Sagar Apte, cofounder of CarIQ, which is building a connected car ecosystem; says IoT is a new arena where the nimbleness of a startup allows it to listen to market needs and address them quickly.

Startup Focus: The Cubical Labs – founded by Swati Vyas, Dhruv Ratra, Rahul Bhatnagar; is focusing on Home automation solutions; has raised ₹1.5 crore ($225,000) through angel funding. Plans to work with large realtors and have products pre-installed in projects.

Event Focus: The Agri Asia 2016 exhibition on agriculture technology will be held at Mahatma Mandir in Gandhinagar, Gujarat, India from 2nd to 4th September, 2016. It will showcase international agriculture technologies.

Get your startup/ event featured here on this blog – absolutely free. Send an email to indiastartupblog.com@gmail.com and get an audience with our more than 5,000 business followers both international & national including those on Twitter, Facebook, LinkedIn.

INDIAN FASHION STARTUPS – CURATING & INNOVATING DRESS SENSE!

Emma Watson

One size fits all – not any more!! Fashion startups are running pilot projects, gathering information from hundreds of thousands of users and learning from user data. They are now recommending clothing based on one’s body type and style preference.

Uniqueness or how different you are from others is the key to survive in the choppy waters of Indian ecommerce, which have already gobbled up a few fashion etailers in the past 2 years and unsettled a few big ones too, including Jabong.

What doesn’t work:

Many of the failed fashion startups were lacking profitable business model and had high-cost structure. Also, the segment was and is still cluttered with me-too players which leads to hyper-competitive pricing and necessitates constant innovation to stay ahead. On top of all this, high percentage of return of apparel by consumers adds to the cost of etailer and customers can actually be very fickle and fussy.

What works:

The opportunity to build an online fashion brand is huge so in spite of the headwinds faced by a few online fashion etailers; investors continue to back and fund startups in the online fashion segment in India. Reasons: it has one of the highest margins among ecommerce segments; India has one of the most under-penetrated online fashion markets in the world. Besides this, deeper smartphone penetration is only going to help the online players. Then there are what they call “second-mover” advantages for new players. Consumers have already got a hang of buying fashion products online; cash-on-delivery and free returns have boosted buyers’ confidence.

A bunch of existing and new startups have in the past or recently received funding from angel investors. These investors also believe that a huge market like India can not be controlled by just one or two brands and so they are having their options spread out.

Among the recently funded ones are: Roposo, fashion social network has raised $21 million, last round was in April this year; 6degree, a fashion talent and tech startup has raised $200,000 in June this year; Voonik, a fashion shopping app has raised $27 million with $20 million of it in June alone this year.

#HarDinFashionKaro Download Voonik https://goo.gl/mLB2cq to shop for women fashion, accessories & jewellery ~via www.fromote.com/#ref=1602

For the record: fashion tech segment has received $162.24 million funding between October 2015 and July 2016.

So initially may be the script went wrong for some early startups but the fact is that India’s online fashion story is intact and here to stay.

Startup  Focus: Pretr, an omnichannel fashion marketplace; co-founded by Bhavik Jhaveri. Bootstrapped; claims to have over 100 top brands, 4 large format stores.

Event Focus: Print Expo Chennai 2016 to open on August 12 through August 16 at the Chennai Trade Centre, Chennai, India.

P.S.

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