Startups valued over a massive $1 billion are unicorns – you know that fantasy animal that doesn’t exist? In the recent past, Indian unicorns have been in the news. Whether it’s about something as celebratory as receiving huge amounts of funding series after series or a dramatic exit of a co-founder.
It’s been a few years since the ‘startup boom’ in our country and after all the gushing, people have now started talking about the possible burst of the startup bubble.
Will 2016 be the beginning of the end? I don’t think so. Yes, investors are focusing on more sustainable revenue models. And that should have been the case from the very start. But does pricey investors mean the end of startup proliferation? Nope. It only means the good ones, the right ones will flourish.
So what sparked the fear of the tech bubble burst?
One of the main factors – famous startups ended up firing hundreds of employees (on the grounds of reorganizing the company, etc) in the past few months led analysts to come to this conclusion. While it makes sense for them to compare the rise of the startups to that of the dot com boom, the need of the hour remains unique startups set on the foundation to solve the common man’s problem – be it hospitalization or food delivery. In other words,
startups born with the aim to raise funds, gain immediate profit are bound to break in the long run while startups built for the fundamental reason to solve an identified problem – directly or indirectly helping the masses – emerge as the sustainable hero.
The much talked about visit to the Silicon Valley by our Prime Minister was made to digitally empower Indians and promote tech investment from around the globe.
Contrary to what people have started to believe, the Indian startup ecosystem is still booming.
On 16th January 2016, Modi will be announcing the complete action plan for Start-up India, Stand-up India – a programme focused to boost entrepreneurship that will help generate employment for more than 250,000 people by 2020.
For the first time, the Government of India, has planned to promote bank financing for start-up ventures. With this sort of unprecedented support and encouragement, it might as well be impossible to anticipate a bubble burst.
Previously published on LinkedIn.
Picture courtesy – flickr.com/photos/scobleizer/14213975068