Understanding the Reasons Why Most Startups in India get Fails?
India has a large startup ecosystem, but most of them fail. This is mainly due to a lack of funding and subsequent failure to innovate. There are some Indian startups that have managed to make it big like Flipkart and Zomato, but they're few and far between. The Indian startup industry is still in its infancy and the market is dominated by foreign players like Amazon and Google. To tackle these problems and to create an environment where Indian startups can thrive, we need three things: more investment, better infrastructure, and foster innovation.
The Indian Startup Ecosystem
The biggest problem is the country's lack of investment, which is one of the primary reasons why most startups fail. The government needs to support more startups by either providing more capital or backing local VC firms to invest in Indian startups. This is where technology comes in. Entrepreneurs can work on building the right product, but without financing, they can't even be sure their product will become a success. By tapping into technology like artificial intelligence, machine learning, and data, they can create a product that is alluring to potential users, and which could be a hit. The biggest problem that Indian startups face is that they cannot raise money.
Why Most Startups Fail in India
India lacks basic infrastructure The first problem is the lack of a large amount of funds. In the next blog, we will explain the issue that India faces in the form of limited funding for startups. The current scenario for Indian startups is bleak. Nearly 80% of startups fail to generate any revenue in the first three years of operation. According to a 2015 survey by Harvard Business Review and the National Association of Software and Services Companies, 70% of startups get funding only after two years of operations. Most companies like Flipkart, Zomato, and Infosys raise venture capital funds after their second year. While raising ventu...............................
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