Despite a funding slowdown this year compared to last year’s bonanza, as many as 1,400 startups have come up in the country this year, allowing India to maintain its position as the third largest startup base in the world with over 4,750 tech startups, ahead of countries such as China and Israel, the startup report released at the Nasscom Product Council on Wednesday revealed.

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With1,400 new firms,India retainsits startup-hub tag
Despite afundingslowdownthisyearcomparedtolastyear’sbonanza,asmany as 1,400 startupshave
come up inthe country thisyear,allowingIndiatomaintainitspositionasthe thirdlargeststartupbase
inthe worldwithover4,750 techstartups,aheadof countriessuchas Chinaand Israel,the startup
reportreleasedatthe NasscomProductCouncil onWednesdayrevealed.
eTailing India Thought Corner
Indiaisin the thirdpositionjustbehindUSandUK, and nearly1,400 new startupsare expectedbyend
of 2016, up by 8-10% from lastyear,revealedbythe "IndianStartupEcosystemMaturing - 2016" report
by Nasscom-ZINNOV. Accordingtothe report,the numberof techstart-upsinIndiaisexpectedtogrow
by 10-12% to over4,750 bythe endof 2016.
Landscape of startups in India
In the vertical growthsegments,investorsare lookingatdomainslikehealth-tech,fin-tech,edu-tech
and artificial intelligence.Withatotal fundingof approximately$4billion,closeto650 startupswere
fundedindicatingahealthygrowthof the ecosystem, the reportsaid.

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(Photo:ET)
"The startup landscape inthe countryisbecomingthe epitome of innovation,withcompaniesbringing
out solutionsthatare aimedatsolvinglocallyrelevantissues.Nasscombelievesthatthe contributionby
startupshas beengrowingata rapid rate and the landscape hasa huge potential intermsof business
stability,revenuegrowthandfurtherinnovation,"saidNasscomChairmanCPGurnani.
Studentson the forefront
There has beenagrowth of 25% witnessedin2016 withover350 start-upsbeingfoundbyyoung
students.Withrespecttoinvestments,the report highlightsthatinvestorsare increasinglyseeking
opportunitiesinstart-upsinareasotherthanonline retailing.
Investmentscenario
The pace of investmentshassloweddownfairly.Comparingwiththe $1.6billioninvestedinthe first
nine monthsof 2015, venture capitalistsinvestedalittle more than$1billioninthe same periodthis
year,accordingto data compiledbyChennai basedresearchfirmVenture Intelligence.

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(Photo:Livemint)
The most importantthingisthat investmentsare streamlinedand have notstopped.Startupsacross
technologysegmentscontinuetofindearly-stage capital withasmanyas290 raisedcapital at the seed
and alphabetrounds(SeriesA,B,C and D)—intheirformative stages.
Conclusion
ProfessorNavakantaBhatat the IISc’selectrical communicationengineeringdepartmentsumsupin
perfectwords,"The keytakeawayisthatthere issensitivityfrombothsides — industryandacademia.
Theywere twoworldsbefore.Now,the ecosystem,especiallythroughrightgovernmentintervention,
has made itpossible tohave thistransformation."
Indiahas a highlydynamicmarketenvironment.Withprudentinnovationandrightgovernance,startups
are leavingamark forthemselves.