Angel stage funding slow down by 53 %- Nasscom-Zinnov report

Angel stage funding slow down by 53 %- Nasscom-Zinnov report

Posted by M.Venkatesh on November 6th 2017

The 2017 edition of the Nasscom-Zinnov report on the ‘Indian Start-up Ecosystem – Traversing the maturity cycle’,was  released during the annual flagship Nasscom Product Conclave 2017 held last week.

Highlights
According to Nasscom, the mortality rate of start-ups in India is 30 % to 35 % every year. 
 
In the last five years, 5,000 start-ups were launched, including an addition of 1,000 such ventures this year.
Complicated tax rules are hindering the growth of start-ups as the angel companies are being muted and he founders of start-ups are going to tax offices.
 
The early stage funding is up by 83 % and the growth stage start-up (funding) is up by 23 %. It is the only angel stage funding that is down by 53 %.
 
Nasscom authorities believe that India provides the third largest start-up ecosystem across the globe and Delhi, Mumbai and Bengaluru have emerged as one of the most preferred places for start-up companies.
 
Another interesting aspect was the resurgence of contract manufacturing, which is helping in curtailing the production cost.
 
Indian ecosystem continues to remain attractive for investors with almost US$ 6.4 Bn of funding in first half of 2017 demonstrating 167% growth over H1 2016. 
 
The start-up ecosystem also witnessed mushrooming of a significant base of companies building solutions for India centric grass root level problems across Healthcare, Education Inclusion, Financial Inclusion, Clean Energy and Agriculture.

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