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There are close to 50 startup accelerators in India and interestingly, most of them offer a mix of services – some just focus on mentorship and some on real estate. Few accelerators have just focused on getting the team investor-ready, while some of them provide a lot of soft support (motivational/team building) to the startups.
In the entire process, the actual customer, i.e. the entrepreneur is confused. The offerings from accelerators aren’t clear and hence, we decided to understand customer’s expectation, i.e. the entrepreneur’s perception and expectation from startup accelerators and how much equity will they part with for the following key services:
- Customer Connect.
- Investor Connect.
- Real Estate & Infrastructure.
The report is based on a survey conducted by NextBigWhat Insights team. More than 12,500 entrepreneurs took the survey and the report looks at expectations of entrepreneurs from different startup hubs in the country (for example, Bangalore, Chennai, Hyderabad, NCR, Pune, Mumbai etc).
The report is meant for startup accelerators, angels and Investors who need data points on an entrepreneur’s expectation to serve the ecosystem better.
In fact, this is the first ever comprehensive report on the accelerator space and what Indian entrepreneurs actually expect from them.
Data Collection/Survey Methodology
The report takes a look at key startup hubs across the country and in some cases, specific cities (like Bangalore/Chennai), owing to the volume and uniqueness of city entrepreneur’s response to the survey questions.
Who is it meant for
Startup Accelerators, Investors and Angel Investors who want to tweak their offerings based on what entrepreneurs expect. The report will give a great overview of what technology entrepreneurs expect from accelerators and investors.
The truth is that Indian startups are zooming past ahead of the accelerators and investors and have way too many options to explore (including being incubated at Silicon Valley incubators/accelerators). Accelerators need to match up and we believe that this study will provide them the much needed peek into the mind of a technology entrepreneur.
Table of Contents
- Indian Startup Accelerators : The New New Thing.
Survey Methodology and Data distribution
- A brief overview of accelerator space in India.
- The Un-equal Equity Equation
Mentorship = Mentor + Ship OR Mentors + Hip? What matters to Entrepreneurs?
- Regional Data
– Western India
- What’s NextBigWhat for Startup Accelerators in India.
– Key takeaways.
Report Findings : Quick Overview
While accelerators have often complained of Indian entrepreneurs’ indifference towards mentorship, the survey findings reveal the opposite. 31% of Indian entrepreneurs are ready to give 2-5% equity for mentorship, while 17% are ready to part with 5-10% and the rest with 0.1-2% equity.
However, the biggest difference is in understanding expectations from mentorship.
For most of the accelerators and incubators, mentorship often means bringing industry experts and having them conduct workshops on high-level business problem statements.
- The survey finds that close to 63% of entrepreneurs are ready to part with more than 2% equity for accelerators who bring customer connect to them.
- When it comes to investor connects, a whopping 52% of entrepreneurs are ready to part with 2-5% equity and 31% with 5-10%, followed by 17% for 0.1-2% equity.
- 50% of entrepreneurs are okay to give away 0.1-2% equity for real estate support and 31% is ready to give away 2-5% and 19% for 5-10%.