News from the Indian Startup world – July 16

Compilation of Indian Startup world new

Indian and Israeli Startups Come Together to Develop Medical Solutions

An upcoming startup event promises to bring hundreds of Israeli and Indian entrepreneurs to collaborate in creating healthcare solutions for India. India’s largest startup incubator T-Hub has tied up with Pears Foundation to organise the first ‘India-Israel Med4Dev Hackathon’ from July 22nd to 24th, 2016. The organisers expect more than 150 binational teams to participate in the startup event that takes place simultaneously in Tel Aviv, Bangalore, Hyderabad and Mumbai. Pegged presently at $100 billion, healthcare is one of the biggest and the fastest growing sectors in India. The two-trillion Asian economy is growing at a rate of 8 percent per annum. India’s growing middle has created a huge market for modern and efficient healthcare. The healthcare sector in India is projected to reach $280 billion by 2020. Israel is a pioneer in healthcare and medical technology. The Jewish State has over 1,000 startups in the healthcare sector alone. Most of these startups have been developing solutions for high-end segment in the U.S. and other developed countries. Indian healthcare market, despite offering lower profits margins serving low and middle income consumers, offers big scope for scaling up of new medical products and solutions, due to India’s sizable and growing consumer-base.“This hackathon will build bridges between the innovation ecosystems of Israel and India by providing a platform for entrepreneurs and industry experts from both the countries to work together to pioneer affordable healthcare solutions,” Jay Krishnan, CEO of T-Hub.

Indian start-ups showcase prowess in Africa

In an effort to boost the start-up ecosystem in Africa, a delegation of 21 Indian start-ups, which had accompanied Prime Minister Narendra Modi to Kenya, have showcased their technologies and case studies there.These start-ups were jointly led by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Technology Development Board (TDB). The FICCI and the TDB intend to begin a programme dubbed African Development through Indian Technology and Innovation (ADITI) under the slogan ‘India Shares Because It Cares’ as envisaged in the joint statement by Modi and more than 40 heads of States of Africa during the India Africa Forum Summit III in New Delhi in October 2015. The participating companies come from several national flagship programmes such as DST-Lockheed Martin India Innovation Growth Programme, Millennium Alliance, and DRDO-FICCI Accelerated Technology Assessment and Commercialization.

Government inducts private orgs for Startup India Action Plan

The government has decided to include private organizations also as incubators under the Startup India Action Plan, besides the government-run 278 incubators. Twenty organizations, including Nasscom and iSprit, have been certified approve and recommend startups for the program.“There is a lack of right kind of incubators. We need to provide sector-specific services, which we are trying to do in our warehouses,” said Rajat Tandon, vice president of Nasscom. There is a paucity of incubators and to fill this gap, the government is trying to engage private organizations for providing mentorship facilities to entrepreneurs.

A tie that’ll give startups boost

The Chandigarh Angels Network (CAN), a group that mentors and funds startups, has partnered with Noida-based TurningIdeas Ventures (TVP), a startup incubator, to expand investment and knowledge-sharing opportunities. A CAN member said a memorandum of understanding (MoU) recently signed by the two organizations would be beneficial for both the groups as well as the startups of Chandigarh and Noida regions. “Benefit will be in terms of funding and knowledge sharing, and it will enable CAN to get access to investable startups incubated at TVP and the right of first preview to some of the preferred potential investees. This will bring good investment opportunities and open a new door of opportunities for startups of the Chandigarh region,” the member said.

Sidbi Selects Eight More Funds Under Startup India Action Plan

The Small Industries Development Bank of India (SIDBI) will invest about $64 Mn (INR 428 Cr) in eight venture funds, as defined under the Startup India Action Plan. SIDBI is the principal development financial institution for promotion, financing and development of industries in the MSME sector, and for coordinating the functions of other institutions engaged in similar activities. SIDBI’s Venture Capital Investment Committee (VCIC) screened 13 proposals from VC funds on Tuesday. VCIC comprises former Mohandas Pai, Kiran Karnik (former Nasscom chief), and Indian Angel Network founder Saurabh Srivastava among others. The committee recommended eight proposals for an aggregate corpus support of about $64 Mn (INR 428 Cr) from the fund, cleared by the cabinet last month. The total targeted corpus of these eight funds is about $470 Mn (INR 3,130 Cr). The funds that were screened work in the areas of internet of things (IoT), artificial intelligence, healthcare, consumer media, fintech, data analytics, cyber security, digital media, machine learning and agri-related businesses.

Venture capital investments rebound for tech startups

Venture capital investments in startups rebounded in the second quarter, as a general stock market recovery helped restore confidence, according to a new report published on Friday. Investors plowed US$15.3 billion into venture-backed startups in the second quarter of this year, a 20.5 percent increase over the US$12.7 billion invested in the first quarter, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association. The report’s conclusions are based on data from Thomson Reuters. “There was a bit of a pause in the first quarter when the public markets took a beating,” said Sean Cunningham, managing director of Trident Capital Cybersecurity. “The public markets are back. Everyone is bullish.” Ride-hailing company Uber Technologies Inc and messaging app Snapchat boosted the quarter, raising a combined total of US$4.8 billion, or nearly a third of total investments. In terms of total dollars, second-quarter investments outpaced all but three quarters since 2000, the height of the dot-com boom, suggesting that despite widespread concerns over valuations and a dormant market for tech initial public offerings, venture capitalists and institutional investors are not shying away from writing big checks.




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