1. Nurturing Start ups through Technology Business Incubators 9.12.2015 ASCI, Hyderabad Dr. Anita Gupta Scientist –F & Associate Head National Science & Technology Entrepreneurship Development Board, (NSTEDB) Department of Science and Technology Govt. of India.

2. Focus of the Government Three Ds - Democracy, Demography and Demand Four Ss - Skill, Speed and Scale … Startups Five Ts - Tradition, Talent, Tourism, Trade and Technology Six National Initiatives – Digital India, Make in India, Skill India, Swatcha Bharat, Swastha Bharat, Startup India

3. India Is The Fastest Growing Start-up Ecosystem In The World India Start-up Report 2014, conducted by National Association of Software and Services Companies (NASSCOM) US UK INDIA 3000 + Start ups in ICT and Software Jobs generated 75,000 4 fold increase by 2020 4 x increase in quantum of investments by Angels and VCs ( about 2 billion US $) Bangalore, Delhi-NCR, Mumbai, Hyderabad, Pune and Chennai account for 90% of the start-up activity. 120+ Business Incubators and Accelerators

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5. Concept to Market Risks in Scaling up S&T Innovations Public Resources For risk coverage

6. National Science and Technology Entrepreneurship Development Board (NSTEDB) Set up in 1982 by Department of Science and Technology, Government of India to promote gainful self employment amongst S&T manpower Mandate: To promote and develop entrepreneurship through use of Science and Technology

7. Entrepreneurship Ecosystem Socio Cultural Factors Education, knowledge and Skills Finance and Support Networks Business Environment

8. Technology intensive knowledge based venture promotion Tech nology Led Economic Growth Entrepreneurship education and Training Bottom of the pyramid- Grass root and inclusive growth NSTEDB role in nurturing Entrepreneurship www.nstedb.com

9. S NAPSHOT OF NSTEDB ACTIVITIES S EARCHING & SCOUTING POI, IIGP, NBI S EGREGATING IEDC, i-STED S USTAINING TBI S EEDING & SUPPORTING SEED FUND S CALING ISBA and TiE NETWORKS S YSTEMATISING CAP. BLDG(WEDP), POLICY INITIATIVES S HOWCASING PRESIDENT EST., TECH EXPO Innovation, Entrepreneurship and Incubation ….

10. Why business support services are needed The Small Business Administration (SBA) keeps the stats on business failures and claims that more than half of new businesses will disappear in the first five years. 4. A study done by Inc. magazine and the National Business Incubator Association (NBIA) revealed that 80 percent of new businesses fail within the first five years. "Data from Statistics New Zealand indicates that 53 percent of small to medium-sized enterprises (SME) fail within the first three years. Research suggests that two-thirds of business collapse is due to financial difficulties associated with poor financial management.". According to Dun & Bradstreet reports, "Businesses with fewer than 20 employees have only a 37% chance of surviving four years (of business) and only a 9% chance of surviving 10 years."

11. A ABILITYENTREPRENEUR B POTENTIALIDEA/ TECHNOLOGY C DEMANDMARKET D AVAILABILITYFINANCE E STRENGTH/CONFIDENCE/ MOTIVATION TEAM (EMPLOYEES) A + B + C + D + E = FORMULA FOR SUCCESS: UNKNOWN Organization: Informal, Management: Entrepreneurial Technology: Concept

12. Technology business incubator in an academic campus Enabled Built around Creation of Early stage Idea stage Rigor Research based Pool of knowledge Students Alumni Professors Infrastructure

13. Why incubatees choose an incubator

14. What incubatees find missing

15. Tangible Services offered by Incubators Shared communication, manufacturing equipment and lab facilities such as photocopy machines, faxes, computers and internet access; Shared common spaces – conference rooms and meeting rooms – for meetings with clients, Need based services i.e secretarial, accounting, business services such marketing, and legal services; Assistance with basic business activities such as marketing plans, joint promotion, business plans, financial systems, bookkeeping etc; Greater flexibility with the timings and amounts of rent and other payments; are more sensitive to the businesses needs;

16. Photograph Courtesy: The Times of India Intangible Services offered by Incubators Guidance to inexperienced entrepreneurs, Incubators are generally run by experienced entrepreneurs or academics who have knowledge in the field; facilitate mentors to engage with start ups Assistance in securing start-up capital; Incubators have tie ups with Angels and Venture Capital firms Peer to peer learning : Incubators have multiple start-ups and the entrepreneurs can learn and gain experience from each other;  etworking Activities provide linkages with investors and strategic partners.

17. Seed Fund Size Rs. 20 million Max: Rs. 5 million to incubatee To address the need of entrepreneurs Companies in pre revenue stage, cash inflows are less, risk is more, team is inexperienced, business model is unproven. Enhance the Incubator service portfolio Implemented through Incubators ( 20 % ) Selection and disbursement to potential incubatees by Incubator through a well defined selection process DST Seed Support System

18. INTERNATIONALISATION EU Network, UKBI,SPICE, Swedish infoDev. APIN Network NBIA IC2 Institute, UT Austin, USA HAAS School of Management, UC Berkeley, USA Stanford Graduate School of Business, Stanford Univ.

19. SOME ….ENABLING MEASURES / POLICY INTERVENTIONS National strategy to make development more inclusive. The emphasis is on shaping a national-level innovation System across all sectors and facilitate innovation by micro, small and medium enterprises. Service Tax Exemptions to Start-up in Incubators Incubators granted permission to hold equity in start-ups Incubators to get funding support through CSR initiative of Indian Companies

20. Incubation in India- A Snapshot A dedicated cumulative incubation space ~ 585,700 sq.ft. Around 2,500 new ventures have been incubated 950 ventures graduated. 32,000 new jobs generated Turnover of Rs. 1500 crore in 2012-13 Generation of around 450 patents/ copyrights. An annual footfall of nearly 14,750 high-end innovative entrepreneurs.

21. Setting the context – Majority of Incubators work in tech. sectors, where rapid scaling and growth of startups are charactersied by large gestation times and where there are issues of access to capital, availability of strategic mentors

22. Some Basic Statistics INCUBATION SPACE ~5,85,700 sq.ft. of dedicated area INCUBATION CAPACITY ~1,250 hi-tech ventures can be physically incubated ~Rs. 50 Crores to 30 TBIs for SEED SUPPORT to its incubatee/start ups from DST ( TDB + NSTEDB) benefitting nearly 200 start ups CAPITAL GRANT from NSTEDB, DST ~Rs. 200 crores ….. Av. Support from DST/TBI ~ Rs. 3.00 Cr No. of STEPs/TBI supported by NSTEDB, DST till Sept 2015 … 85 out of which 3 CLOSED DOWN 2500 Stsrt ups incubated …… 1000 graduated ……. 450 patents/copyright

23. Broad Outcomes … As per 2013 Data EMPLOYMENT GENERATED ~32,000 hi-tech jobs TURNOVER OF COMPANIES ~ Rs. 3,500 crores in last 5 years INTELLECTUAL PROPERTY GENERATED ~450 patents / copyrights VALUATION OF COMPANIES (within 12-24 months of existence) INCUBATION FOOT FALLS ~14,750 high end innovative entrepreneurs approach Incubators annually for incubation support No. of STEPs/TBI supported by NSTEDB, DST till Sept 2015 … 85 out of which 3 CLOSED DOWN

24. IKP Knowledge Park (IKP) nestles in a 200-acre pollution free zone in Genome Valley, Hyderabad. Currently, the 140,000 sqft. Innovation Corridor 1 with 84,000 sqft of wet laboratory space is operational. Around 35 acres of land has been developed with utilities for customised R&D centres in life sciences. Pharma and Biotech Hub: Hyderabad

25. Spread over nearly 300 acres with 4 million sq. ft. of built-up space Technopark hosts over 195 IT companies employing over 28,000 IT professionals. TECHNOPARK TRIVENDRUM

26. TBI -New Public Private Collaborative Model Start-up Village at Cochin Initiated by a Successful Student led Start-up MobMe, graduate company of Techno-park Trivendrum Telecom/Mobile Value Added services Telecom Service Providers Roped in NRIs from Gulf Industry leaders in Telecom and IT Sensitised Entrepreneurs/ Students “ I am an Entrepreneur” Campaign with road shows, inspiring videos, covering major towns, rural areas of Kerala

27. LATEST TBI BUZZ …….Start up Village at Kochi

28. ROBOSOFT Technologies, 400 + ENGINERRS 1500 INDIRECT EMPLOTYM ENT Rs. 100 cr. Turnover

29. Incubatee Success Stories- REEL to REAL Hindustan Times Jan 31, 2012 – UAV from 3 idiots now a part of defence forces Unmanned Aerial Vehicle (UAV) Developed by Ideaforge Technology Pvt. Ltd, a company floated by IIT-Bombay Alumni and incubated at SINE Incubator of IIT Bombay. DRDO has recently given right of production to Ideaforge for Netra – a DRONE Specifications: Weight: 1.5 kg Dimensions: 90 cm x 90 cm Power source: External swappable Li-Po batteries Payload: Hi-resolution daylight camera or Thermal Camera with Pan & Tilt control Performance Range: 1.5 km radius,, 200 m altitute Endurance: 30 min per battery charge Wind Resistance: Upto 15 knots Applications - Counter insurgency operations in forested areas - Surveillance operations - Search and Rescue –Border infilteration monitoring –Snow and Avalanche studies in Mountains

30. Accelerators ……. Fast growth and fail fast model. Run by Pvt. organisations Money and Mentoring, incubate and invest Typical incubation period is 3/6/9 months Y combinator, USA Exelerate, USA Dream IT Ventures, Israel Microsoft Accelerator, Bangalore Venture Nursery Mumbai Venture Studio, Mumbai GSF, Gurgaon T-labs, Noida 91 spring board, Delhi, Gurgaon

31. START UP SCALING ISSUES Right Talent Acquisition Fear of failure Focus on Investments than revenue generation Lack of good marketing strategy, branding limited outreach Limited understanding of competition Reinvest constantly Lack of aspiration

32. Way Forward Over 3.84 Billion US $ by VCs …..in Indian startups in the current year Recommendations of NITI Aayog’s Report on Innovation and Entrepreneurship Startup Policy by DIPP to be unveiled this month Opportunities ….Potential ….Talent ……

33. THANK YOU http://www.nstedb.com http://www.nstedb.com DAWN OF A NEW ASIAN AGE