Business Incubators in India Anshul Saxena CINE What are Business Incubators Incubation is a dynamic process of business development. Incubators nurture young firms, helping them to survive in their early stage. Incubators provide: Infrastructural support i.e. office space, meeting room Platform to do networking Management assistance Other support services, specific to incubators Source: http://www.1000ventures.com/presentations/business_incubators.html Benefits of Incubation For Tenant Companies For Corporate World The new technology / product gets developed Informed investment choice Possibilities for takeover For Govt. Economic development Social benefits Encouragement to innovate Model Linear Model of Innovation: Origin of all innovation lies in Research activities Role of universities Since Universities receive Govt. grant, so ideas of current national interest incubated Apart from R&D support, managerial support also required to develop business Commercial feasibility to the ideas Networks in suitable places can prove handy Indian Scenario Incubation at nascent stage Mostly in a college / university, e.g. TREC – STEP (NIT, Trichy) Society for innovation and entrepreneurship (IIT – B) Nirma Labs Technology Business Incubators – IITD [email protected] (Kongu Engg. college, TN) These incubators provide technological support STPI (Software technology parks) CIIE, IIMA Example Main Activities of SINE are to: Incubate early stage entrepreneurial ventures based on technology and innovation. Create physical infrastructure and support systems necessary for business incubation activities. Facilitate networking with professional resources, which include mentors, experts, consultants and advisors for the incubatee companies. Identify technologies/innovations which have potential for commercial ventures. Promote and foster the spirit of entrepreneurship. Carry out activities that facilitate knowledge creation, innovation and entrepreneurship activities. STP Remarkable Govt. initiative Special incubator in software sector Objectives of STPs are To establish and manage infrastructure resources i.e. Data communication facilities, core computer facilities To promote development and export of software services Fast clearance (single window) for statutory services To train professionals Currently in about 34 cities across India Taking examples from Europe Extensive network of incubators Incubators in or near by famous universities Some expertise to offer Provides technical and R&D support Management Technological Networks In fact, Incubators position themselves according to the additional expertise they offer Platform to pitch to VCs and PE funds Network among Incubators Help in preparing pitches Incubators have some VCs as either stakeholders or Board members Incubators develop good track record and rapport with certain VCs Incubators develop network among themselves Help them in utilizing networks with VCs and other research firms Some examples: Manchester Business school incubator, IT univ. of copenhagen, London science park etc. Govt. assistance UK trade and investment (UKTI), an arm ok UK foreign ministry works with incubators Organizes programs wherein motivates young companies to be part of these incubators Also invites foreign startups Provides Legal and other statutory services to incubators The way ahead Govt. initiatives to develop incubators Public-Private partnerships Some benefits and sops to develop and manage incubators The return in this business (incubators) come after a gap of time, Govt. needs to fill this gap in PPP Indian incubators have to think beyond R&D assistance Networks with VCs and other firms also required Incubators can be segmented according to the ideas they incubate. Infrastructure Taking one step forward Good infrastructure: a hygiene factor to companies Thank You !!