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India’s startups progressing past those of other countries: Michael Marks

Despite needing work on aspects such regulatory issues, India’s strong and productive
environment of startups is moving ahead of those in other countries such as Israel and China,
Michael Marks, co-founder of Innoventure Partners said, as reported by the Economic Times.
“The investment opportunity in India is quite nascent right now with 75% of the capital in
Bengaluru, Delhi and Mumbai,” Marks said.

In regard to aspects of the startup ecosystem that needs work, Marks, who’s investment
company has funded Twitter and SpaceX, mentioned regulatory issues and focus areas
regarding innovation. Marks said saying startups should focus efforts and ideas toward solving problems closer to home rather than following global companies and trends to best fit the needs of the
environment. Taxes and demonetization of Indian currency should help ease the burdens of
regulatory issues and bring in capital, Marks said.

“There is a cultural shift towards entrepreneurism which augurs well for India in the coming
years but there are still lesser number of VCs and angel investors compared to the number of
startups,” Marks said. According to the Economic Times, so far in 2017, there have been 19,000 Indian tech startups gaining popularity, which have raised a total of $31,299 million, with ICOs gaining a role as an alternate route for funding, Marks said.

A recent partnership between Innoventure Partners and Startup Clubs will create a seed fund of
$100,000 to invest in startups focused in sectors such as education, agriculture, robotics, health
care, machine-learning and blockchain. The partnership aims to reach smaller towns and cities,
nationally, and will look at startups worth $1 million or more.

Due to the role of Business to Business to Consumer startups in the growth of the Indian
ecosystem, Marks said they plan to focus on startups that provide services to other companies.
“Apart from the regular fields, Blockchain is really exciting because which will accelerate safe
transactions, solve issues like cyber security and help scale Fintech,” Marks said.

(Picture courtesy: Entrackr)

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