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EE Times-India > EDA/IP

Indian Startup Stats: 379 tech startups launched; 87 closed

Posted: 13 Dec 2012     Print Version  Bookmark and Share

Keywords:technology  startups  Bangalore  eCommerce  Mobile apps 

In 2012, around 379 technology product startups were launched in 2012 out of which 87 closed their operations, as blogged by Mukund Mohan, the CEO-in-Residencce, Microsoft Accelerator.

Mohan said Microsoft Accelerator India tracked over 6214 entities which included 3948 technology product companies as well as services companies which were building products and many viable side-projects, where the founder is generating some traction or revenue. The study was conducted by having face-face interactions with founders of 65 per cent of the companies. Closure data was entirely based on face-to-face interactions.

Here are some key highlights of the study:

- The year 2010 and 2011 saw highest number of new tech product startups with 452 and 519 respectively, but 2012 is poised to trend lower with just 379 startups.

- In the past five years, Bangalore has registered 591 tech startups launches, followed by Delhi NCR (237) and Chennai (203), Pune (149), Mumbai (136), while Hyderabad has seen the steepest declines with just 83 startups.



- eCommerce segment accounted for 3% of all new startups, followed by B2B (Business-to-Business) segment (24%), consumer internet segment (12%), Mobile apps segment (10%), SaaS (Software as a Service) segment (8%), and other segments accounted for 13% of new ventures.

- Interestingly, Bangalore, that saw the highest number of startup launches, also registered highest number of closures, according to the study. Bangalore recorded over 70% closures followed by Delhi (35%) and Mumbai (25%), and others accounted for 55% of closures.

- 61 startups closed down as they were unable to raise funds; 43 startups say they were unable to collect money quickly; 39 found a better opportunity; 28 startups closed due to inability to get customers; and 19 startups cited founder issues.



- 61% of first time failed entrepreneurs have started working at a big company; 30% of these entrepreneurs have started working at another startup; while only 9% have started another company.

- Majority ventures (135) are not shutdown but are kept as side projects; 36 founders have sold their firm and 19 founders have shut down the entity.

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