The Witty Stride

– Satyakam Ray

What makes Silicon valley so special and how we can make our own Bangalore as the next big thing in tech. industry. Read on to find out.

San Jose in the US shares a common trait with Evoma coworking space in Whitefield, Bangalore. Costa Coffee in Koramangala, Bangalore, is also included. These places are perfect for generating new ideas. They are also great for pitching to VCs. They are synonymous with the next big thing—where it all began! Since the advent of the startup ecosystem, they have been vital for many young entrepreneurs worldwide. This is especially true for those with a strong tech background.

Other places in India’s Silicon Valley, like Bangalore, are popular among aspiring geeks, technocrats, and management enthusiasts. These include four startups on the IIM Bangalore campus, the Ants café-HAL, and the Minute Bistro. Interestingly, one must pay by the minute spent on the Minute Bistro’s premises; the food is free! These places highlight the proverb “time is money.” They show that groundbreaking ideas can arise over a cup of coffee. This can occur regardless of the environment. No wonder Jeff Bezos started Amazon in his garage!  

It’s intriguing to find similarities between the Indian Silicon Valley and the actual Silicon Valley. Let’s delve into an eye-opening discussion about how Bangalore can become the next big thing. It’s essential to recognize the late President Dr. Abdul Kalam’s prophetic words about the Startup ecosystem we see today.

Dr. Kalam’s words of wisdom:

In 2013, when there was no startup ecosystem in Bangalore or India, Dr. Kalam highlighted the importance of entrepreneurship in the education system at the 54th foundation day of IIT Bombay. He said, “In the current context, the education system must be designed to generate many employment generators, not employment seekers.”

He narrowed the entire process down to three possible action plans. First, an innovative, robust education system that rewards creativity rather than rote learning must be established. Second, a supportive banking system and VCs must be keen to invest in promising talent and ideas. Lastly, entrepreneurs must demonstrate value by introducing innovative, practical products that solve existing problems or address deficiencies.

He championed the role of technology. He said, “Technology is the non-linear tool available to humanity. It can affect fundamental changes in the ground rules of economic competitiveness.” 

Bangalore startup scene:

Silicon Valley in the United States is home to many tech giants. These include Apple, HP, Google, Oracle, Intel, Cisco, Facebook, Broadcom, Adobe, and eBay. Bangalore, the Indian Silicon Valley, is home to many homegrown tech startups. These include Team Indus, Ather Energy, Explara, Fabulyst, Nexhop, Zerodha, Zivame, Embibe, Colive, Zoomcar, and ClearTax.

The former list is more established and has a global presence. The latter list is a relatively new and emerging enterprise. Still, the Indian counterparts have achieved much quicker success and are raring to grow.

Nevertheless, the importance of India’s startup ecosystem is enormous. Flipkart, Swiggy, Zomato, Amazon, Ola, Uber, and BigBasket have entered the market. Their presence has benefited Indian households nationwide. They cater to day-to-day needs. Also, it’s an essential source of job creation in this already gloomy economic Scenario. 

Types of Indian startups:

The Indian startup system can be broadly categorized into three types.

• “Inspired” startups: Many view startups as a means to make quick money. They observe developments outside India during their professional tenure. They mainly focus on the US or other advanced economies. Instantly, they think of the Indian market and its untapped potential. They launch new ventures, as advanced economies do, and earn quick profits. Existing companies inspire them to create a mere or slightly modified replica in India. The media and ordinary people often portray them as heroes because of their significant net worth. One example in this category is Flipkart.  
• Online versions of existing services: One approach is to promote them. These may include apps or websites. List any services, such as food delivery, carpentry, car sales, groceries, and educational services, such as coaching. Nowadays, there is a trend toward making it available online to a broader customer base. The traditional system is slightly modified to appear more refined and technologically advanced. They save people time, money, and resources, making them a prevalent solution. Examples include BigBasket, Amazon, and others. This list is extensive and accounts for 80-90% of the Indian ecosystem.  
• Actual Innovative ideas: It’s encouraging to see many young aspiring entrepreneurs develop new ideas to address ongoing problems. Many startups, like Biocon and the Bangalore Bio-Innovation Center, have developed innovative solutions and products to address the pandemic. Similarly, we Indians rejoiced. Team Indus (Axiom Research Labs) signed a working agreement with OrbitBeyond. OrbitBeyond bid and won a NASA CLPS award to land several commercial payloads on the Moon. Many graduates from prestigious engineering institutes, including IITs, IIMs, BITS Pilani, IIIT, and NITs, are contributing innovative and technologically savvy ideas. These ideas aim to simultaneously increase India’s knowledge and wealth.

Where do we stand now?

The 2015-16 period saw a significant surge in the number of startups securing funding. A few achieved first public offerings. This is a positive sign. Many startups were in sectors such as e-commerce, food technology, enterprise/SaaS, and Health Technology. Others were in fintech, edtech, consumer internet, transportation, digital media, and logistics. AI, machine learning, and cloud-based applications are at the forefront of tech entrepreneurship.

Indian entrepreneurship still faces many issues.

• Directionless product/service: Many tech innovators believe their product is the ultimate solution, solving key problems. They take pride in their belief. That aspect is appealing if the product is grounded in relevant market research and leverages untapped market potential. If the drive is directionless, it will automatically lead to a financial debacle. The absence of market demand for the product renders the entire effort futile.  
• Lack of Funding/Connectivity: Many new ventures are initially funded from the personal resources of the founding members. Eventually, new funds will be needed to sustain the business. Entrepreneurs may not be familiar with venture capital, crowdfunding, or angel investing. They may also be unaware of product pre-sale or government funding. This lack of knowledge might halt mere survival or any expansion plan. Well-connected people in the industry are more successful than tech geniuses who, in real life, tend to stay aloof.  
• Aversion to Marketing: The product will speak for itself. This philosophy does not work in practice. To create a better future product, one must popularize it through social media or other business channels. A strong marketing team is essential to a company’s success. An administrative team or a group of skilled HR professionals is also necessary.  
• Failure to Capitalize on the Trend: Successful entrepreneurs possess strong business acumen and a keen understanding of customer needs. Many Indian entrepreneurs fail to recognize market needs and instead follow an imaginary path, believing they will succeed.  
• Govt. Red tape: The print and news media have discussed the ease of doing business in India. In the World Bank’s Ease of Doing Business 2020 report, the country ranked 63rd out of 190 nations. Although the ranking has improved, India remains outside the top 50 countries globally.  

The way ahead?

Funding: If the idea is innovative, entrepreneurs should get all benefits without bias. This includes venture capital, angel investment, and government funding. An educational background, professional networking, and other connections can sometimes help secure financing. Still, that should not influence the decision to fund an entrepreneur. This is especially true if they are new to the scene and lack recommendations. They may also lack a strong network. In any case, they can go for crowdfunding.  

Skill set and Knowledge: Indian academia places greater emphasis on theory than on the practical dimensions of wealth creation and entrepreneurship. The education system must be prepared for the subsequent significant technological development. It will come from the hostel rooms of the premier Indian institutes.  

Connectivity: Indian academia and industry are distinct entities. In recent years, significant progress has been made through many coding marathons and hackathons. Business idea presentations, seminars, and webinars have been organized. Informal social groupings have also formed. These activities have disseminated the latest news on technology and entrepreneurship to a broader audience.  

Brainstorming: Peer group interaction among young entrepreneurs should be knowledge-focused. Sharing knowledge promotes the product or service and fosters camaraderie among the group, benefiting the ecosystem.  

Leadership: The startup’s leadership team should be tech-savvy. They should be knowledgeable about niche technologies. They must communicate effectively with target clients and investors. A strong business sense is paramount.  

Social Acceptance: If one decides to start a business, close family members and relatives often create a ruckus. To realize the entrepreneurial dream, solid emotional backing and a transparent financial safety net should be in place. After all, the family is the backbone of many successful individuals.

Bangalore can become the next Silicon Valley. We need to focus on the factors above. We must also cultivate a genuine willingness to create something independently. Our independent technological breakthroughs and ease of business will drive the rapid rise of Indian entrepreneurship globally. This is crucial for Digital India and India’s status as a global superpower.