A NASSCOM report has brought out that there was a remarkable growth of 25% in student entrepreneurs during 2016 with over 350 startups founded by young students. While 44% of the startup founders were between 31-45 years, the median age of startup founders was 31 years in 2016.
The report – brought out by NASSCOM and consulting firm Zinnov – entitled ‘Indian Start-up Ecosystem Maturing – 2016’ analyses the current scenario of the Indian startup ecosystem. It reported that over 1,400 new startups emerged in 2016. Further, the number of tech start-ups is expected to grow by 10-12% to over 4,750 by the end of 2016.
Bengaluru, NCR Delhi and Mumbai continued to lead as the major startup hubs. The year 2016 saw a modest 8% increase in startup funding. About 650 startups received a total funding of approximately US $4 billion. According to the report, Indian metros had a startup mortality rate of 14-15%, whereas Tier II and III cities had mortality rate close to 20%.
The report was launched on the sidelines of NASSCOM Product Conclave 2016 in Bengaluru. India continues to retain the third place (after USA and UK) in the number of startups. The report estimates that job creation in startups is set to slow down to 17% in 2016 as against 31% in the previous year. According to the report, India will have over 10,500 startups by 2020, employing over 210,000 persons.