I read this interesting article recently- about how Delhi is the new hub for tech startups– in Wall Street journal.
I am curious- what are the experiences/opinions of other members- who may have worked in multiple Indian metros on the subject.
Below article is a mirror of article in Wall Street Journal: http://online.wsj.com/article/SB10001424052970204485304576644220533569618.html
Delhi is the New Hub For Techs
MUMBAI — The National Capital Region, as Delhi metro area is known, has upstaged Bangalore as India’s biggest hub for technology start-ups, according to a survey released this week.
At least 220 technology start-ups were launched in the Delhi area over the past three years, compared with 159 in Bangalore, according to the survey conducted by YourStory.in, which tracks start-ups in India.
Of these, 49 start-ups in NCR attracted investors, while only 18 were able to raise funds from investors in Bangalore.
The survey is based on data from 1,057 start-ups across 16 cities. Most of these ventures are less than three years old, and 15% of them are older.
Launching companies is easy in Bangalore because mentors and facilitators provide a mature entrepreneurial ecosystem, but sustaining these ventures is difficult in the absence of financial support, said Shradha Sharma, founder of YourStory.in, which claims to have the biggest database of fledgling firms in India.
“Startups come up crazily in Bangalore and die just as fast,” Ms. Sharma said. “New Delhi and Mumbai companies have more access to capital than Bangalore. Seed- and angel-funding is minimal in Bangalore. Most companies still have to come to Mumbai for funding.
Also, companies in New Delhi’s suburbs of Noida and Gurgaon usually are started by professionals with experience working for multinationals. “The ideas are more mature, therefore the quality is high,” she said.
Startups in Delhi stand out in terms of business focus, said Ashish Sinha, head of Pluggd.in, which also tracks startups.
- Delhi is the New Hub For Techs - November 4, 2011
- TiECon Delhi from Sept 18 to Sept 19 - September 16, 2009
- Bill Gates in Delhi – Nov 6th, 2008- Opening wallets to Fund Research - November 10, 2008
Availability of funding may be a factor, but I have a slightly different perspective on rise of Delhi. All those NRIs who are coming back to India are finding Delhi’s infrastructure to be the best the country has to offer and are settling there with their families. These highly educated, highly skilled and highly skilled executives are providing the necessary talent which is a perquisite for a startup boom.