 "We have planned a grading system for fresh start-ups: Pranav Kumar Suresh")
Startup Village in Kochi, the not-for-profit business incubator, funded jointly by the government and the private sector, is set to add 200,000 sq ft of space by 2016, by when it will also have about 2,000 new start-ups, says Pranav Kumar Suresh, the village's new chief executive officer (CEO). In an interview with George Joseph, Suresh says the village is setting up an exclusive angel fund for its start-ups. Edited excerpts:
What are your immediate plans?
We are receiving 300-500 applications every month. We are rolling out the Startup Village app, which will address the problem of scale. By downloading the app on a smartphone, founders will be able to get their start-up incubated at Startup Village. They will also be able to access a great pool of mentors, pitch to different investors, gain access to a market place and, most importantly, help other start-ups.
What is your plan to further the cause of the village?
My focus will be on improving the experience at Startup Village, building the start-up community and eco-system and increasing their exposure. For fresh start-ups, we have planned a grading system. This will help assess new entrepreneurs, provide mentors to guide them effectively and facilitate venture capital (VC) funds to fund correctly. The grading is in a range of zero-five levels. Achieving level five means they are financially sound and successful in marketing their products. We plan to have at least 1,500 companies in zero-two levels in two years. We also aim to have 500 companies in three-five levels. So far, 31 companies have received initial funding from various VCs and have proved their mettle. In another six months, half of these companies will raise follow-on funds for further development.
Why only 31 companies?
Usually, this is an extremely good number. Of the 600 companies, 500 have been incubated in the past year alone. So, they have experience of less than a year. Usually, three-four years of working experience is needed for securing funds. In our case, of the 50 companies incubated two years ago, 31 have secured funding. This is a pretty good achievement.
As the new CEO, what is your plan to make Kochi a major start-up destination?
In the long run, we plan to make Startup Village one of the top five start-up destinations globally.
The talent we have in India is no way inferior to that in Silicon Valley or any other leading start-up destination. However, Startup Village lacks the tools and exposure that can create world-class products. Startup Village is focused on bringing all these tools here. For that, we are planning to roll out one of the largest education initiatives for school students in India. Under the programme, Startup Village plans to provide computer education to 10,000 students in the next couple of years. Also, we plan to start a start-up leadership academy for students and young entrepreneurs. A separate team will impart the education programme and lead the academy.
In the short term, we plan to make Startup Village the best start-up destination in India. For that, the village will have to provide the 'easiest' access to funds, mentors, market and infrastructure. We will facilitate this through our app and angel fund.
What are your plans for the angel fund?
This is an exclusive fund for the start-ups here. We have registered it with the Securities and Exchange Board of India. We are raising funds from VCs; within a year, we plan to raise Rs 50 crore. Instead of VCs funding companies directly, we provide them the seed capital. Financial support will be limited to very early-stage start-ups. The funding is in a range of Rs 5-10 lakh. Through this, we are targeting to help 1,000 such start-ups through 5-10 years.
What incentives do you offer to attract start-ups to Kochi?
We expect entrepreneurs from across India, especially Bangalore, Hyderabad and Mumbai, to come here. We want to make Kochi India's most wanted start-up destination. The kind of expertise Kochi offers is unparallel in India. We provide in-house mentors, expertise, funding, etc, in a single location.
How can the information technology (IT) sector help start-ups?
Traditionally, the Indian IT sector has been service-oriented and helped companies improve their net profits by bringing efficiency to their processes through IT. However, this might not be sustainable beyond 10 years.
IT companies will have to come up with disruptive products and solutions to help companies increase revenue. Given how large organisations work - processes trump flexibility and innovation - we will soon see large IT companies working closely with start-ups. This can be in the form of developer ecosystems or companies setting up their own incubators and accelerators. This will create a win-win situation for both, because the large company will benefit from the accelerated pace of innovation inherent in the start-up culture and start-up will get access to a global market for their products.
How is the government addressing the new initiatives?
The Kerala government is setting up a technology innovation zone, which will house multi-sector incubators that facilitate innovation, incubation and business acceleration, under the leadership of IT secretary P H Kurian. This will set the pace for entrepreneurship development in Kerala and help innovators from across sectors, including agriculture, ayurveda, biotechnology and logistics. Of the state budget, one per cent has been kept aside for youth entrepreneurship. The landmark student entrepreneurship policy is a very positive sign. With the Centre proposing to have a minister for entrepreneurship and given its focus on youth, talent and innovation, these will be exciting times for start-ups.
The government has provided a Rs 10-crore angel fund to support innovative start-ups this financial year. Funding schemes from the Kerala Financial Corporation and the service tax exemption provided to entrepreneurs have helped the start-up community. With the government setting up an angel fund, more start-ups will be funded and given a chance to grow. Such initiatives will definitely come to the rescue of early-stage start-ups. Many successful start-ups have availed of the seed fund provided by the Centre's Technology Development Board, through its seed support scheme. Entrepreneurs from the state will further benefit from having a state-sponsored seed support scheme.
What are your immediate plans?
We are receiving 300-500 applications every month. We are rolling out the Startup Village app, which will address the problem of scale. By downloading the app on a smartphone, founders will be able to get their start-up incubated at Startup Village. They will also be able to access a great pool of mentors, pitch to different investors, gain access to a market place and, most importantly, help other start-ups.
More From This Section
At the pace at which technology is evolving, multi-billion dollar companies are now being set up in less than five years. WhatsApp, Dropbox, Uber, Instagram and Snapchat are examples. The educational programmes we are rolling out for school and college students will take care of this. These include initiatives such as micro-processor-based computer education, prototyping in fab labs and leadership lessons.
| WHAT IT HAS ACHIEVED |
|
What is your plan to further the cause of the village?
My focus will be on improving the experience at Startup Village, building the start-up community and eco-system and increasing their exposure. For fresh start-ups, we have planned a grading system. This will help assess new entrepreneurs, provide mentors to guide them effectively and facilitate venture capital (VC) funds to fund correctly. The grading is in a range of zero-five levels. Achieving level five means they are financially sound and successful in marketing their products. We plan to have at least 1,500 companies in zero-two levels in two years. We also aim to have 500 companies in three-five levels. So far, 31 companies have received initial funding from various VCs and have proved their mettle. In another six months, half of these companies will raise follow-on funds for further development.
Why only 31 companies?
Usually, this is an extremely good number. Of the 600 companies, 500 have been incubated in the past year alone. So, they have experience of less than a year. Usually, three-four years of working experience is needed for securing funds. In our case, of the 50 companies incubated two years ago, 31 have secured funding. This is a pretty good achievement.
As the new CEO, what is your plan to make Kochi a major start-up destination?
In the long run, we plan to make Startup Village one of the top five start-up destinations globally.
The talent we have in India is no way inferior to that in Silicon Valley or any other leading start-up destination. However, Startup Village lacks the tools and exposure that can create world-class products. Startup Village is focused on bringing all these tools here. For that, we are planning to roll out one of the largest education initiatives for school students in India. Under the programme, Startup Village plans to provide computer education to 10,000 students in the next couple of years. Also, we plan to start a start-up leadership academy for students and young entrepreneurs. A separate team will impart the education programme and lead the academy.
In the short term, we plan to make Startup Village the best start-up destination in India. For that, the village will have to provide the 'easiest' access to funds, mentors, market and infrastructure. We will facilitate this through our app and angel fund.
What are your plans for the angel fund?
This is an exclusive fund for the start-ups here. We have registered it with the Securities and Exchange Board of India. We are raising funds from VCs; within a year, we plan to raise Rs 50 crore. Instead of VCs funding companies directly, we provide them the seed capital. Financial support will be limited to very early-stage start-ups. The funding is in a range of Rs 5-10 lakh. Through this, we are targeting to help 1,000 such start-ups through 5-10 years.
What incentives do you offer to attract start-ups to Kochi?
We expect entrepreneurs from across India, especially Bangalore, Hyderabad and Mumbai, to come here. We want to make Kochi India's most wanted start-up destination. The kind of expertise Kochi offers is unparallel in India. We provide in-house mentors, expertise, funding, etc, in a single location.
How can the information technology (IT) sector help start-ups?
Traditionally, the Indian IT sector has been service-oriented and helped companies improve their net profits by bringing efficiency to their processes through IT. However, this might not be sustainable beyond 10 years.
IT companies will have to come up with disruptive products and solutions to help companies increase revenue. Given how large organisations work - processes trump flexibility and innovation - we will soon see large IT companies working closely with start-ups. This can be in the form of developer ecosystems or companies setting up their own incubators and accelerators. This will create a win-win situation for both, because the large company will benefit from the accelerated pace of innovation inherent in the start-up culture and start-up will get access to a global market for their products.
How is the government addressing the new initiatives?
The Kerala government is setting up a technology innovation zone, which will house multi-sector incubators that facilitate innovation, incubation and business acceleration, under the leadership of IT secretary P H Kurian. This will set the pace for entrepreneurship development in Kerala and help innovators from across sectors, including agriculture, ayurveda, biotechnology and logistics. Of the state budget, one per cent has been kept aside for youth entrepreneurship. The landmark student entrepreneurship policy is a very positive sign. With the Centre proposing to have a minister for entrepreneurship and given its focus on youth, talent and innovation, these will be exciting times for start-ups.
The government has provided a Rs 10-crore angel fund to support innovative start-ups this financial year. Funding schemes from the Kerala Financial Corporation and the service tax exemption provided to entrepreneurs have helped the start-up community. With the government setting up an angel fund, more start-ups will be funded and given a chance to grow. Such initiatives will definitely come to the rescue of early-stage start-ups. Many successful start-ups have availed of the seed fund provided by the Centre's Technology Development Board, through its seed support scheme. Entrepreneurs from the state will further benefit from having a state-sponsored seed support scheme.