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Expansion of incubator support needed for India’s startup ecosystem: IITM-IIMB report

Economic Times · 1m

- India's startup ecosystem lacks sufficient incubator support, with only 0.8 incubators per million people compared to 8-10 in the US, UK, and China. - The report highlights the need to improve the performance of underutilized incubators and increase awareness about the benefits of incubation, as only 8.2% of startups in the country undergo incubation. - Incubated startups in deep tech sectors secure funding earlier, with 27.1% receiving their first round of funding within a year of incorporation compared to 15.4% for non-incubated startups. - Incubators enhance the credibility of startups and increase their chances of funding, with incubated startups being two and a half times more likely to get funded compared to non-incubated ones. - Incubated startups are more actively engaged in creating intellectual property, with a higher percentage of incubated startups publishing patents than non-incubated ones. - The contribution of incubated startups to the economy is significant, with an average annual revenue of about Rs 1,590 crore for every 100 incubated startups in the initial years and estimated assets worth Rs 10,627 crore by the ninth year.