START-UP

CATALYSTS -
INCUBATORS &
ACCELERATORS
2020
Copyright © 2019

NASSCOM®
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2
Foreword
The last decade between 2009-2019 has witnessed tremendous change in Indian Start-up
ecosystem. As the ecosystem has matured, more institutional support is being provided at
ideation and problem solution stage. This is evident from the presence of 520+ incubators and
accelerators in the country. A major growth driver and the key enabler for this change is strong
Debjani Ghosh
government resolve and support by Government of India. While Start-up India has provided the
President,
much needed impetus, the State governments have also propelled the growth with State policy
NASSCOM
implementation being a key performance indicator in State start-up rankings. This is evident from
the fact that about 72% of the programs are either Centre or State government supported.
Another noteworthy paradigm has been active participation of Corporates and private players in
accelerating start-ups. While corporates are offering various offerings to start-ups and deriving
key tangible business outcomes from collaboration, private players are more driven to scale start-
ups leveraging their network, expertise and previous experience. Notwithstanding this trend,
Debjani Ghosh, Incubators and Accelerators in India, compared to global peers, are catching up to create high
President NASSCOM valued start-ups. This report is one such step to further the growth of Incubators and Accelerators
in India and help make a strong impact for Indian start-ups.
Foreword
Business incubators and business accelerators provide crucial support for new and growing
businesses. Evidence suggests that businesses that receive support in incubators tend to have a
higher survival rate, create more jobs and generate more revenues. Incubators and accelerators,
besides supporting the business development, play an important role in the internationalisation of
enterprises. As the Indian start-up ecosystem gets globalised the competition is going to
increase. In such a scenario increased collaboration with international research labs, incubators
and accelerators Debjani
will beGhosh
crucial. German Government has programmes and initiative to
President,
strengthen and foster exchange between India and Germany in the start-up space and support
Indian and GermanNASSCOM
start-ups in their efforts to gain access to other markets respectively ( eg
GINSEP). Start-ups in India and Germany are increasingly recognizing the opportunities and
advantages that are available in each other's market.
This study was done under the ambit of the Indo-German bilateral Programme on Innovation
Chaman Lal Dhanda Promotion (MSME INNO) which aims to improve the innovation ecosystem through fostering
Project Director, cooperation between different stakeholders. The report besides providing insights on the current
Programme for Modernisation and state of incubators and accelerators in India has also come with specific recommendations to
Innovation promotion In MSMEs improve odds of success for existing initiatives by focusing on effective governance, increased
in India (MSME INNO)
corporate participation and by suggesting innovative approaches to bring focus on impact and
GIZ GmbH
tangible outcomes.
I hope that the recommendations of this report will contribute towards further strengthening the
start-up ecosystem of the country.
Table of Contents
Executive Summary 7

Incubator and accelerator ecosystem is growing rapidly 9

However, there are challenges that need to be overcome 43

To build a strong ecosystem we need to focus on outcomes 53

And drive change through proactive action across multiple dimensions 55

Case Studies 67

Note For Reader 83

Executive
Summary
Executive Summary

• With 520+ tech incubators and accelerators1, India has the 3rd largest number of
active programs2 in the world 3rd 100+
Largest number of programs by Cities with at least one tech
• Due to active policy support, 42% of the programs have been set-up in just last five
country in the world incubator or accelerator program
years to support needs of Indian start-ups
• Presence of at least one incubator or accelerator program in 100+ cities is also
expected to boost the growth of start-up ecosystem
• However, Indian programs have great learning opportunity from their global peers
on almost every key performance indicator. For example
• No present day unicorn3 is a graduate of Indian program 520+ 63%
• Just 7 of 100 most funded4 start-ups in India (excluding unicorns) Active tech incubators and Of programs are active outside Tier
accelerators 1 cities
graduated from a program – none from a equity-led Indian program
• Only 12% of all seed-funded start-ups in 2018 and 2019 had graduated
from a program
• To build world class programs we must proactively solve challenges - the key is to
place emphasis on capability-building over capacity building
• And to this effect, we recommend a concerted effort across three dimensions that
strengthen the core, increase private participation and incentivize
42% 6200+
Of programs were added # of start-ups that can be enabled
performance to achieve specific targets by 2025 in last 5 years each year

Note: (1) Please refer incubator and accelerator definitions. (2) The total number of programs include 200+ incubators and accelerators supported by Ministry of Micro, Small and 9
Medium Enterprises. (3) Unicorn is a start-up with >$1Bn valuation. (4) Considered start-ups that raised Series A and beyond during the period 2018-19.
Tech Incubator
and accelerator
ecosystem is
growing rapidly
India has the 3rd largest number of active programs in the world

3000+ China

1500+ USA

520+ India

400+ United Kingdom

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

Illustrative / Not Exhaustive 11
Note: The total number of programs in India include 200+ incubators and accelerators supported by Ministry of Micro, Small and Medium Enterprises
Incubators have the largest share of active programs in the country

Incubator

A fixed term, 6-24 month, cohort-based program

focused on assisting entrepreneur to find
problem/solution fit

Accelerator
441 85 83
A fixed term, 3-6 month, cohort-based program
focused on assisting entrepreneur with
problem/solution fit to find product/market fit

Scalerator Incubator Scalerator Accelerator

Focused on assisting entrepreneur with product/market
fit looking for rapid expansion

Source: NASSCOM database, Zinnov CoNXT Research & Analysis 12

Since 2015, we have witnessed a rapid increase in number of programs

# of programs incepted, by year

Policy support has been the key driver

• Govt. of India’s Start-up India policy acted as a trigger for building

incubation and acceleration capabilities

• This led to fresh impetus from Central & State Government

agencies, and industry associations

• Growth was augmented by increase in corporate accelerators and

incubators – set-up as part of open innovation initiatives

Source: NASSCOM database, Zinnov CoNXT Research & Analysis 13

There is a healthy distribution of programs across the country

100+ 37% 63%

Chandigarh

Delhi-NCR
Jaipur

# of unique cities with at Share of Top 6 cities with Kanpur

Share of other cities
least one incubator or most number of active
(excluding Top 6)
accelerator programs
Ahmedabad Kolkata

Mumbai
Top Cities
Pune
Hyderabad

Established1 Hubs

Emerging2 Hubs
Bangalore Chennai
Coimbatore Nascent3 Hubs
Bangalore Delhi-NCR Mumbai Hyderabad Chennai Pune
Kochi
11% 10% 5% 4% 4% 3%
Thiruvananthapuram

Source: NASSCOM database, Zinnov CoNXT Research & Analysis. Note: (1) Established hubs are start-up hubs with more than 100 funded start-ups (2) Emerging hubs are start-up hubs with more than 20 funded
14
start-ups (3) Nascent hubs are start-up hubs with less than 20 funded start-ups
Invariably, incubators are sector agnostic1 while accelerators are sector or
theme specific

% of programs active in a sector

Healthcare 18%
Incubator Accelerator

Financial Services 17%

Consumer Tech & Consumer Products 13%

97% 83%
Agnostic Sector or theme Enterprise Products 13%
specific

Mobility & Electric devices 11%

Industrial Manufacturing 9%

Education & Edtech 9%

Sector
Agnostic Sector
Specific
Agriculture 6%

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

15
Note: Sector Agnostic programs don’t focus or specialize in a specific sector
Programs are being hosted by variety of operators

350+ 45+
• Growth in programs outside established start-up hubs is Academia Corporate
primarily due to incubators set-up by academia, industry Set-up and operated by a large Indian enterprise
Set-up and operated by an academic institution
associations and government agencies with direct involvement from faculty with a full- or Global MNC – with a full-time team
time team

• A major contributor is start-up policies and initiatives

launched by various Governments

• Corporate programs are soon expected to overtake 55+ 70+

Private programs
Private Public
Set-up and operated either by an investor or a Set-up and operated by a Govt agency/body or
group of investors an Industry association

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

16
Note: The total number of programs include 200+ incubators and accelerators supported by Ministry of Micro, Small and Medium Enterprises
Value propositions for start-ups differs by operator type

Operator Type Public Private Academic Corporate

Market Access

Technical Expertise

Business Expertise

Funding

Tools & Resources

• While Public and Academic programs are more focused on idea & prototype stage, Private and
Value Contribution of Programs
Corporate programs are more suited for start-ups needing market access and funding

Low Med High

Source: NASSCOM database, Zinnov CoNXT Research & Analysis Illustrative / Not Exhaustive 17
Incubator is a preferred choice for academic and public programs, while
corporates and private investors have a bias for accelerators

Accelerator Incubator

Corporate Private Academia Public

89% 67% 97% 97%

accelerator accelerator incubator incubator

• Corporates and investors have a clear preference for start-ups with at least problem/solution fit
• This is primarily on count of sustenance model that requires programs to generate positive returns in short period than academia or other sponsors
• This is also reflective of market needs – for providing structured support for start-ups to achieve product/market fit

Source: NASSCOM database, Zinnov CoNXT Research & Analysis 18

Rapid growth in academic
programs is expected to
provide major thrust
Growth is primarily on account of policy support

# of programs incepted, by year

350+ # of academic programs1

100+ # of programs incepted in last five years

of top 50 technology academic institutions2 have an incubator

96%
program

97% are Incubator programs

94% Supported by at least one Central Government agency/ policy

Source: NASSCOM database, nstedb.com, https://meity.gov.in/, aim.gov.in, Zinnov CoNXT Research & Analysis. Note: (1) The total number of programs include 200+ incubators and accelerators supported by
Ministry of Micro, Small and Medium Enterprises (2) Based on National Institutional Ranking Framework (NIRF), top 50 technology academic institutes include top 23 Tier I institutes and top 27 Tier II institutes 20
running incubator programs
Central Government agencies are the primary drivers of growth

Department of Science and

Technology
• Department of Science and Technology is the
primary driver for setting-up new programs

• Ministry of Electronics and Information 54

Technology is more focused on enhancing
capabilities especially in priority technologies1
Ministry of
4 13 Electronics and
• Atal Innovation Mission is designed both from 4 Information
Atal Innovation Technology
new set-up and augmentation Mission
22 2 4 10 13
• Ministry of Micro, Small & Medium
1
Enterprises supports Technology Business 1 6
Incubators (TBIs) primarily in and around
academic and technical institutions to tap
potential technology ideas and innovations
200
Ministry of Micro,
Small & Medium
Enterprises

Source: NASSCOM database, nstedb.com, meity.com, aim.gov.in, msme.gov.in, Zinnov CoNXT Research & Analysis
21
Note: (1) Identified by Ministry of Electronics and Information Technology (MeitY) technologies such as IoT, AI, Block-chain, Robotics etc. in seven pre-identified areas of societal relevance
Academic programs predominantly seek to enable innovation, entrepreneurship
and job creation

Primary key performance indicator tracked by a typical academic program1 Core value proposition offered to a start-up by a typical academic program2
(% reflects how common a KPI is) (% reflects how common a value proposition is)

Number of active start-ups 100% Infrastructure & technical support 95%

Number of jobs created 100% Mentorship & Coaching 90%

Number of patents filed 100% Bootcamps/ Workshops 70%

Number of events/ workshops 100% Networking opportunities 60%

Follow-on funding of startups 50% Cash grant/ equity funding support 55%

Growth in business/ revenue 50% Support services 50%

Note: (1) Surveys and primary interviews with programs (N=40) (2) Secondary research, surveys and primary interviews with programs Illustrative / Not Exhaustive 22
While, technology and business incubation programs are becoming a “must
have” for academic institutions

TBI at BITS Pilani, Hyderabad campus was established in 2012 currently provides low cost and
resource intensive sandbox where entrepreneurs can develop their product & services. The program
has major thrust areas including ICT, Microelectromechanical devices (MEMS), Biotechnology and
Pharmaceuticals.

Center for Entrepreneurship Development and Incubation (CEDI) was established at National
• Established Tier 2 and Tier 3 institutes are well
Institute of Technology, Trichy in 2012. The centre is running a program specially in areas of ICT and
Electronics. The centre also provides seed fund of INR 25 lacs for technology-oriented business advanced in supporting the start-up ecosystem
areas.

• The programs are nurturing young students with

Established in 2013, Chitkara Innovation Incubator has a 15000 sq. ft facility for incubation. their in-house research capabilities
Entrepreneurs and students get access to seed capital opportunities, mentorship and capacity
building workshops. So far the incubator has supported 35+ start-ups.

• Private institutions have contributed significantly

in promoting entrepreneurship at institution level
Established in 2011, Dhirubhai Ambani Institute of Information and Communication
Technology in Gandhinagar aims to foster innovation among students using its strength in
research and interdisciplinary areas.

KIIT – TBI was established in 2009 to promote innovation and entrepreneurship development.
The incubator has programs in technology incubation, Biotechnology and Social incubation.

Source: Official websites of Amity, NIT Trichy, Chitkara University, DAIIC and KIIT Illustrative / Not Exhaustive 23
India’s premier universities are trying newer approaches to enable
entrepreneurs to target more opportunities

New Capabilities and/or Approach Program Name Brief of the program

CIIE at IIM Ahmedabad provides rigorous research and data-driven tools,

Deep market and user persona
learning resources and insights for entrepreneurs and their champions. Creates
research capabilities a broad pool for incubation, acceleration and investments.

With an intent to catalyse local ecosystem the seed support program from IIT
Pan-India focus from Day Zero Mandi invites applications from across the country. Start-ups have to spend only
3-months at minimum in Mandi.

IIT Hyderabad has launched Fabless Chip Design Incubator (FabCI) with
Niche capabilities in form of hitech
support from MeitY and industry partnership for start-ups focusing on chip
labs, tools and test-beds design.

IIT Bombay SINE has partnered with Department of Science and Technology
Leveraging corporate partnerships (DST) and Intel to create a program focused on hardware start-ups using cutting
edge technology for critical markets.

IIT Delhi launched a program for PhD/MD candidates and/or degree holders to
Focusing on alternate entrepreneurs assist them in converting intellectual property into a viable business.

Source: Official websites of IIM Ahmedabad, IIT Mandi, IIT Hyderabad, IIT Bombay and IIT Delhi Illustrative / Not Exhaustive 24
Public programs are
growing and evolving
with start-up needs
Since 2015, there has been steady increase in programs backed by State
Governments and Industry Associations

# of programs incepted, by year

70+ # of public programs

66% % of programs incepted in past five years

# of programs set-up and operated by State Government

30+
agencies

30+ # of programs set-up and operated by Industry Associations

Source: NASSCOM database, Government of India websites, Zinnov CoNXT Research & Analysis 26
Public programs have contributed to geographical expansion of incubator and
accelerator ecosystem

# of unique cities with at least one

39 incubator or accelerator (including
academic tie-ups)

# of programs in Tier 1 cities

34% (Delhi, Mumbai, Bangalore, Chennai,
Pune, Kolkata, Hyderabad)

*
66% # of programs outside Tier 1 cities

* Presence in multiple cities

Source: NASSCOM database, Government of India websites, Zinnov CoNXT Research & Analysis Illustrative / Not Exhaustive 27
Programs predominantly seek to enable entrepreneurship, job creation and
increase longevity of start-ups

Primary key performance indicator tracked by a typical public program1 Core value proposition offered to a start-up by a typical public program2
(% reflects how common a KPI is) (% reflects how common a value proposition is)

Infrastructure 93%
Number of active start-ups 100%

Partner credits (e.g. AWS, GCP etc.) 84%

Number of jobs created 100%

Events and/or Ecosystem Connects 93%

Investor Connects 80%

Follow-on funding of startups 100%

Mentorship 80%

Cash grant/ investment provided 75% Support services (e.g. legal, HR,
80%
Finance etc)

Access to Govt. grants/ schemes 50%

Growth in business traction 31%

Bootcamps and/or Workshops 50%

Number of patents filed 31% Laboratory, Toolkits etc for a specific

25%
theme

Source: (1) Surveys and primary interviews with programs (N=32) (2) Secondary research, surveys and primary interviews with programs Illustrative / Not Exhaustive 28
Operators are experimenting with different approaches, for supporting start-ups,
to enable their objectives

Program Name Brief of the program Observations

Internet and Mobile Association of India (IAMAI) Mobile 10X accelerator The program leverages the growth of burgeoning
provides opportunities and support to mobile-first start-ups. internet and mobile penetration in India.

icreate is a joint venture between Gujarat Mineral Development Corporation The program is uniquely positioned to cover diverse
Limited (GMDC) and Gujarat Entrepreneurship and Venture Promotion set of audience with activities that cover schools,
Foundation (GEVPF) with a mission to promote and nurture entrepreneurship. colleges, Entrepreneurs and MSMEs

Lab32 is a flagship incubation program of T-Hub designed for early stage product
Lab32 was created to provide additional support for
start-ups. It guides start-ups through a six-month comprehensive incubation
start-ups as the co-working ecosystem in Hyderabad
program.

Intended to identify 100 innovative start-ups in Karnataka, Government of With an already matured start-up ecosystem, the
Karnataka launched Elevate program designed to provide early stage funding to State government decided focus on solving seed-
start-ups. funding challenge as priority

Start-up Oasis, a joint initiative of RIICO and Centre for Innovation, Incubation
Emphasis was on leveraging expertise and
and Entrepreneurship (CIIE) provides incubation services to start-ups based in
experience of state industrial body RIICO and CIIE to
Jaipur with focus on themes important to the state.
foster innovation

Source: Official websites of Mobile 10X, icreate Gujarat, Lab32, Elevate – Start-up Karnataka website and Start-up Oasis Illustrative / Not Exhaustive 29
Corporate
programs are
creating positive
impact with
focused approach
Corporate programs have increased steadily and consistently

Indian Corporate

Key driver is increasing willingness of corporates to leverage open

innovation approach to strengthen and grow business.

45+ # of corporate programs currently active in India

20+ # of programs incepted in last three years

Global MNC
Percentage share of accelerator among all corporate
90% programs

Percentage of programs operated by global

82% Multinational corporations (MNCs) – primarily
through local R&D centre

Source: Zinnov CoNXT Research & Analysis Illustrative / Not Exhaustive 31

Corporates from BFSI and HiTech1 industry have the strongest participation

Program focus by start-up maturity Split of programs by sector

(% share denotes preferred choice, total not equal to 100)

18%
70%

14%

40%

25%
9%
10%
4%

Pre-Seed Seed Early Stage Growth

7%

• Majority of the programs are focused on seed to early stage start-ups

5%
9%
• All corporate programs have clear sector and/or thematic focus 5%
4% 5%
• There is strong preference for start-ups with at least some customer traction –
typically, early and growth stage start-ups BFSI HiTech Energy
Automotive Retail Aerospace
Real Estate Media & Entertainment Healthcare
Others

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

Illustrative / Not Exhaustive 32
Note: (1) The High Tech industry comprises of Cloud, Infrastructure, Networking, Semiconductor etc.
Corporate programs are heavily concentrated in Bangalore, Delhi-NCR and
Mumbai

More than 75% of the programs are located in just three cities/region1
Distribution of programs
(by industry focus to location)

Bengaluru Mumbai Delhi-NCR

Aerospace 13%
BFSI Delhi-NCR

Energy

Enterprise Software

Healthcare

Media & Mumbai

Entertainment 19%
Retail
Bengaluru
45%
Density of programs
3 3 2 1
+

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

Illustrative / Not Exhaustive 33
Note: (1) For purpose of this study, cities considered in Delhi-NCR region include New Delhi, Gurgaon and Noida
Only 16% of all corporate programs seek equity from start-ups

AIC-AARTECH was established as one of the first Corporate Atal Incubation Centres
under the Atal Innovation Mission. Backed by M/s Aartech Solonics Limited, it is
incorporated as Special Purpose Vehicle (SPV).

NEOTEC Hub program is backed by Kolkata based Ambuja Neotia. Key differentiator
for the incubator program is that start-ups get access to Ambuja Neotia’s different
businesses including Education, Healthcare, Hospitality and Reality.
• Corporates are more focused on commercial
engagements rather than taking equity in start-ups
• Focus on commercial engagements allows corporates
Operating in niche sector, Brigade REAP is one of a kind Property tech Accelerator
to also work with start-ups which are not tightly aligned in India. The program is specifically interested in scaling start-ups that work in areas
of Asset management, procurement and building management systems.
with business – and hence would not be investment or
acquisition targets
• While incubators focus on helping start-ups during pre- Launched as Lumos Health, the accelerator program is focused on scaling start-
ups in Healthcare and Life Sciences. The program is backed by Healthcare
seed and seed stage, accelerator programs take start-
Global Enterprise Ltd and Anthil Ventures.
ups at early and growth stage

Shell E4 is a highly focused program for Energy sector start-ups. The program
runs cohort-based four tracks including growth, international, scale and digital for
start-ups.

Source: Official websites of AIC-Aartech, Neotec Hub, Brigade, Lumos Health and Shell Illustrative / Not Exhaustive 34
Return on investment, is primarily being measured basis business impact

Collaboration Model Objective

16% Few corporates seek returns from start-up collaborations as they

Programs are Equity invest time, resources and capital for a long term partnership from
dependent on Investment the collaboration. The investments are meant to augment internal
equity returns for capabilities and optimize financial metrics.
future growth

Focus is on solving problems which don’t have a ‘ready solution’,

Co-Innovate
before competition to gain top line and/or bottom line impact.

84% Platform
Evangelization
Emphasis on platform adoption and evolution to increase the value
of the platform itself while driving other business metrics
Programs use
business
metrics as a
basis for License or Focus on driving revenue impact, cost savings and/or reduce time-
future growth Vendor
to-market for new solutions.
Agreement

Joint This type of partnership allows them to cross-sell in new markets as

Go-To-Market a joint solution. Primarily to drive revenue impact.

Source: NASSCOM database, Zinnov CoNXT Research & Analysis 35

Corporate programs are designed to drive business objective and provide
comprehensive value proposition

Primary key performance indicator tracked by a typical corporate program1 Core value proposition offered to a start-up by a typical corporate program2
(% reflects how common a KPI is) (% reflects how common a value proposition is)

Financial support
# of Exits 100% 90%
(equity or non-equity)

Equity investment raised

100% Technical expertise 75%
(during or post cohort)

Current Valuation
20% Business expertise 75%
(% IRR, for equity)

Cost savings enabled

75% Zero-equity cash grant 75%
(via partnership)

Revenue enabled
75% Equity Investment 20%
(via partnership)

# of Technical Integrations 50% Access to global markets 80%

Revenue Opportuntity with

# of Partnerships 100% 90%
Corporate

# of Active Start-ups 100% Access to tools, data, technology 90%

Note: 1. Surveys and primary interviews with programs (N=20) 2. Secondary research, surveys and primary interviews with programs Illustrative / Not Exhaustive 36
With their unique value proposition, corporate programs are registering
successful collaborations with start-ups

Platform Evangelisation License or Vendor Agreement Joint Go-To-Market Co-Innovation

Corporates offer access to their Corporate leverages start-up for Corporates partner with start-ups to Start-ups and corporates collaborate to
platforms to start-ups internal challenges or integration. cross-sell solutions co-create new solutions

Intuit Circles, enables mutually Stride licensed its SmartKYC Altizon’s Datonis IIoT suite has been a
beneficial business-building application that has automated a client key component of Wipro’s growth Maersk is leveraging a inspection
partnerships for start-ups along with onboarding process for Societe strategy in the industrial and energy technology developed with Zasti for
access to Intuit’s customers Générale in Europe sector domain specific use-case in containers

Microsoft for Start-ups, works with Neewee’s procuSense, enhances Playment has worked on multiple pilots
select start-ups and programs allowing certainty to manufacturing supply chain Cisco and ZesIoT have jointly closed an supported by Bosch and was able to
start-ups to adopt Microsoft Azure and and procurement operations at Airbus agreement with a leading Indian Airport achieve 99% accuracy on their
co-sell solutions using AI/ML to smoothen their operations computer vision models

Source: NASSCOM, Zinnov CoNXT Research & Analysis Illustrative / Not Exhaustive 37
With increasing
competition there is a
shift in private
programs
Private programs, backed by investors or group of investors, have witnessed
slackened growth

# of programs incepted, by year

55+ # of private programs

14 # of programs incepted in 2015, highest in any calendar year

Number of programs incepted in past four years, i.e. between

15
2016-2019

86% Programs are primarily funded by return on equity1

Source: NASSCOM database, Zinnov CoNXT Research & Analysis

39
Note: (1) Private programs are equity-led, dependent on return on investment from an exit event
Metrics tracked by private programs are focused on business growth for start-
ups and return on investment

Primary key performance indicator tracked by a typical private program1 Core value proposition offered to a start-up by a typical private program2
(% reflects how common a KPI is) (% reflects how common a value proposition is)

Growth in Customer traction Industry connects 91%

100%
(Revenue/ Users)

Tools & Resources 38%

Internal Rate of Return (IRR) 100%

Access to Funding 96%

Follow-on Funding 100%

Technical expertise 46%

# of Exits 100%
Business expertise 75%

# of Active Start-ups 100% Access to Market 87%

Note: 1. Surveys and primary interviews with programs (N=24) 2. Secondary research, surveys and primary interviews with programs Illustrative / Not Exhaustive 40
Given the business model, majority of the programs are based in established
start-up hubs

Emerging Hotspots 7%
Kolkata, Ahmedabad, Kochi,
87% Established Hotspots Jaipur
Bengaluru, Mumbai, Delhi-NCR,
Pune, Hyderabad, Chennai

Delhi-NCR

Jaipur

Kolkata
Ahmedabad

Mumbai
Pune

Hyderabad

Bengaluru

Chennai

Kochi

Source: NASSCOM database, Zinnov CoNXT Research & Analysis, Official websites of programs Illustrative / Not Exhaustive 41
High majority of programs are sector or theme agnostic with clear preference for
accelerator model

Top sectors preferred by private programs

(% reflects most popular sectors)

Sector or Theme Model Healthcare 17%

Financial Services 13%

Retail and E-Commerce 13%

61% 69%
agnostic accelerator
Enterprise Products 11%

Mobility & Automotive 9%

Agnostic Specific Accelerator Incubator Education 9%

Agriculture 6%

Source: NASSCOM database, Zinnov CoNXT Research & Analysis Illustrative / Not Exhaustive 42
Recent highlight has been increase in the number of programs backed by early
stage institutional investors

Launched ReBound accelerator program focused on second and third time founders.
Peer learning program is designed to engage 8-10 start-ups at a time.

• Key driver has been dramatic reduction in active angel

Set-up Arka Venture Labs in partnership with Silicon Valley based funds - Benhamou investors in 2019 which led to 50% decrease in
Global Ventures (BGV) and Emergent Ventures. Initiative focuses on B2B start-ups
and provides them up to $200K in investment with mentorship angel/seed investments

• Allows for choice at later stages where the fund

Operates Extreme Entrepreneurs zero-equity and zero-cash program focused on
early stage start-ups. Program engages 8-10 start-ups each year while providing
primarily operates
certain benefits to Top 40 applicants.

• Allows investor to create a moat around primary

investment stage by offering tangible value
Launched Surge accelerator program for India and South Asia. Program invests
up to $2Mn in each start-up and encourages co-investment.
• Provides an opportunity to take position in start-ups
early-on, potentially leading to better returns

Operate #FindingMisfits program for India. Program invests up to $50K-1.5Mn in

each start-up.

Source: Official websites of Accel Partners, Blume Ventures, Arka Venture Labs, Lightspeed India Partners, Sequoia and Orios Venture Partners Illustrative / Not Exhaustive 43
However, there are
challenges that need to
be overcome
Incubators and accelerators are expected to increase dramatically by 2025

Total incubators and accelerators in India

(# of programs)

520+ 630+ • Numbers are expected to increase across academic,

Addition of 15-20 programs
per year State Government, industry associations and
corporates
• Policy initiatives will be a key driver in the growth – a
2019 2025 E
key motivator being State Ranking Framework that
ranks start-ups on their commitment to encourage
Total capacity in India
(# of start-ups) entrepreneurship
• Capacity addition is expected to complement and
augment growth of number of active start-ups in India

6200+ 8800+
Assuming each program caters to
14-18 start-ups per year

2019 2025 E

Source: NASSCOM database, Zinnov CoNXT Research & Analysis 45

However, start-up have multiple concerns with a typical incubator or accelerator
program

Key Concerns with a typical I/A from an start-up perspective1

Overseas programs have better track record 63%

• At the core, start-ups suspect ability of a typical

incubator or accelerator program to improve
No clarity on real tangible value contribution 58%
odds of success of the venture
• Low confidence directly impacts the applications
Presence of better alternates (value added investors) 46% a program receives
• Which directly impacts the input quality and
hence output - much like a university course
Low investment and higher dilution 21%

Archaic or outdated engagement format 34%

Lack of visibile differentiation 63%

Note: 1. Surveys and primary interviews with start-ups (N=24) Illustrative / Not Exhaustive 46
Overall, Indian programs need to emulate their global peers in delivering
tangible outcomes for start-ups

Programs overseas have been able to achieve considerable success

YoI 150 $ 1.8Bn+ $ 11Mn ~

12% 2010 # start-ups supported Total Follow-On Funding Average follow-on funding
per start-up
Of all start-ups that
raised seed round
in 2018 and 2019 YoI 320 $ 800Mn+ $ 2Bn+
2008 # start-ups supported Total Follow-On Funding Total Value of Portfolio

YoI 170 $ 48Mn+ 70%

2010 # start-ups supported Total seed capital raised Of all start-ups have raised
• Start-ups graduating from a typical Indian follow-on funding
program have minority share when we
consider seed funding data
YoI 48 $ 1Bn+ 100%
• At the same time, global programs have 2011 # start-ups supported Total Follow-On Funding Of all start-ups have raised
follow-on funding
performed significantly better than Indian
peers in helping start-ups raise funding
YoI 300+ $504Mn+ 23
2012 # start-ups supported Total Follow-on funding Portfolio companies acquired

Source: NASSCOM database, Zinnov CoNXT Research & Analysis, Official websites of AngelPad, Dreamit, BoomStartup, Mucker Lab, Alchemist Accelerator Illustrative / Not Exhaustive 47
India is yet to witness a unicorn emerge from any accelerator or incubator

0
# of Unicorns from
Indian equity - led
programs

• It is of paramount importance for equity-

based Indian programs to review existing
approach and processes
• Venture Nursery, which had invested in
Oyo, has not been accounted for as the
program is dormant

Source: NASSCOM database, Zinnov CoNXT Research & Analysis, Official websites of Y Combinator, 500 start-ups, SOSV and Techstars Illustrative / Not Exhaustive 48
Only 7 of 100 most funded1 start-ups have been part of any accelerator or
incubator program

YoI
Online C2B second hand car marketplace
2015

YoI
Payment gateway solution
2014

7%
Start-ups were
YoI
2014
Wearable wristband integrated with
personalized coaching
part of I/A program

YoI Web & mobile based marketplace for multiple

2014 local services

• Of these none are from equity-based YoI Online self-driven car & motorbike rental
2015 service
programs in India and majority are from
non-equity corporate programs
YoI Social product discovery & e-commerce
2015 platform

YoI Mobile banking solution & employee benefits

2015 management

Source: NASSCOM database, News articles, Zinnov CoNXT Research & Analysis and Official websites of 500 start-ups, Y Combinator and Google Launchpad
Illustrative / Not Exhaustive 49
Note: (1) Considered start-ups that raised Series A and beyond during the period 2018-19
Analysis of M&A deals in past two years also reflects a tiny share from I/A
programs

Acquisitions

• Much alike funding scenario, we

Number of start-ups that were part of
incubator or accelerator program
18
are yet to witness a high-profile
exit from a I/A program –
especially equity-led programs
• Share of non-equity programs,
206 23
especially corporate-led, is fairly
noticeable

4
Number of exits1 among start-ups
founded between 2009-19
Acqui-hired

Source: NASSCOM database, Zinnov CoNXT Research & Analysis. Note (1) Exits considered between 2018 and 2019 Illustrative / Not Exhaustive 50
As the Indian start-up ecosystem gets globalized the competition is only
set to increase

• Offers $150,000 for 6% equity dilution

• Operates multiple 3-6 month programs like • Operates two cohorts a year, now • Startupbootcamp is a network of industry-
through its seed program that provides
HAX, MOX, India. Bio and three more to providing start-ups $150,000 for 7% equity focused Start-up accelerators. Operates
mentorship support, networking and
provide equity investment with mentorship dilution with hands-on mentoring and globally with 20+ industry-focused
strong alumni engagement for all
support to start-ups proactive alumni support programs globally providing up to $20,000
investees
for 6-8% dilution with mentorship
• Active in India since 2017 • Active in India since 2014
• Active in India since 2011
• Active in India since 2016
• Programs like HAX and MOX actively • YC’s partners have been visiting India
• 500 Start-ups set-up a dedicated team in
scout start-ups in India every year since 2017 to select start-ups • Leverages a decentralized model where
India to support its deployment actively –
different programs actively scout start-ups
briefly considered a India-specific fund
• Has invested in 7+ start-ups in India • Has invested in 40+ start-ups in India in India
• Has invested in 50+ start-ups in India
• Has invested in 30+ start-ups in India

Source: Official websites of SOSV, Y combinator, 500 start-ups and Startupbootcamp Illustrative / Not Exhaustive 51
Increasing competition will only compound the challenges programs
are facing today

Top Challenges Faced by Incubators / Accelerators

for all types1

• With global programs actively scouting for start-

Inability to identify and engage quality mentors 47% ups, an increase in cross-border engagements,
and increasing institutional investor participation
Limited to low interest from investors to engage 24% – attracting quality start-ups is the biggest
challenge for programs
Attracting high-quality start-ups 57% • In Tier 2 & Tier 3 cities, incubators are finding it
difficult to scout experienced talent for running
Shortage of skilled and quality operators (manpower) 36% the program and are unable to provide quality
mentorship
Poor participation/ interest from corporates 43% • Absence of a common forum to engage and
share insights is another major challenge
Absence of a common platform for programs 48%

Lack of appropriate Government/ Policy support 11%

Limited exposure to industry trends and insights 23%

Note: 1. Surveys and primary interviews with programs (N=24) Illustrative / Not Exhaustive 52
It is now critical to place emphasis on capability-building than capacity

Key Concerns with a typical Incubator/Accelerator from an investor perspective1

Absence of skilled and quality operators (manpower) 64%

• Concerns raised by investors are similar to

Low propbability of finding high quality start-up 35% those noted by start-ups
• Research indicates that a program’s success is
reflected and is also heavily dependent on the
point-of-view of investors
Low or zero differentiation between programs 71%

No real advantage for a start-up 56%

Low visible value addition from I/A 43%

Note: 1. Surveys and primary interviews with investors (N=20) Illustrative / Not Exhaustive 53
To build a strong
ecosystem we
need to focus on
outcomes
Target 2025 for the Indian tech incubator and accelerator ecosystem

# of Unicorns1 from a
05 incubator/accelerator

Share of start-ups raising follow-on

B
50% funding post graduation2

share of private and corporate

50% programs3 among the total programs
in the country

Note: 1. Unicorns are start-ups with $1Bn+ valuation 2. Funding post graduation refers to the start-ups raising external funding within 12-months of their graduation from a program 3. Private and corporate programs
55
can be equity or non-equity programs with lower to nil dependence on Government funding
And drive change
through proactive
action across
multiple
dimensions
We recommend concerted efforts across three dimensions

To improve odds of success for existing initiatives by focusing

Strengthen Core
on efficiencies and effective governance

Private Participation To increase participation from corporate and equity

investors at seed stage

Innovative Incentives Innovative approaches to bring focus on

impact and tangibles outcomes

57
Efforts that require collective work for each stakeholder involved

Single digital platform for all programs Single “digital window” for all programs National ranking project for all programs Legend

Programs: Academic and Public Programs: Academic and Public Programs: Academic and Public

State Govt.
Call for Call for Call for
Action: Action: Action:

Central Govt.
Cash-in-grant for best performing National innovation fellowship to attract Playbook for corporates to deploy CSR
program highly quality and experienced founders corpus effectively and efficiently

Ecosystem
Programs: Academic and Public Programs: Academic and Public Programs: Academic and Public
Enablers

Call for Call for Call for

Action: Action: Action:
Academic
Institutions

Collaboration with global Incubators Thematic incubators at public research Customized corporate programs
and Accelerators labs and universities
Corporates
Programs: Academic and Public Programs: Academic and Public Programs: Private and Corporate

Call for Call for Call for Incubators/

Action: Action: Action: Accelerators

58
Create a single digital platform for all incubators and accelerators

Challenge
Recommendations
• India currently has at least 30 Government (central and state) funded platforms
for ecosystem stakeholders to discover each other • Roll all existing platforms into a single digital platform – especially for
• Sheer volume is reducing the potential impact as it becomes difficult for a user
incubators and accelerators
to be active on multiple platforms
• Leverage API-driven micro-services architecture for existing platform owners
• Further, there is duplicity of efforts and resources which can be better utilized to
to create apps (if need be) for any specific needs they may have
create new capabilities for the ecosystem
• Drive all Government policies (implementation and monitoring included)
through the platform to drive adoption from incubators and accelerators
• A approach on the lines of India Stack is highly recommended wherein an
independent team is created to focus and build a world class platform for the
Call for Action Indian ecosystem

Ecosystem
State Govt. Central Govt.
Enablers

59
Create single “digital window” clearance for all Government support programs

Challenge

Recommendations
• India currently has at least 4 different agencies (including one per state)
providing funding for new and existing programs • Leverage the common platform for incubators and accelerators for launching
• Each agency operates on different cadence with similar yet different qualifying any policy (central or state) in the ecosystem
and selection criteria • Align KPIs measured to ensure the end objective of creating self-sustaining
• While qualification and selection criteria can vary by the agency – it is important
programs is not lost
to ensure that ecosystem is aware of these policies, is able to apply in time, and
• Leverage API-driven micro-services architecture for agencies to use common
spend progressively lesser time in applying for different initiatives
data yet collect fresh information if needed; and to qualify and select programs
for support
• Enable sharing of information between the agencies to reduce qualification
time and for gaining external insights around a applicant
Call for Action
• Lastly, leverage technology to shift from a cohort-based approach to a rolling-
format which reduces the time-to-launch for new programs; or for existing
programs to expand capabilities
State Govt. Central Govt.

60
Institute national ranking project for incubators and accelerators

Challenge

Recommendations

• With 520+ active programs, with varying capabilities and value propositions, in
the country it is extremely challenging for a entrepreneur to identify and apply
• Design a national ranking project which defines Key Performance Indicators
for a program most appropriate to their needs
for different programs by operator type, i.e. cross sectional view which allows
• It is also difficult for a program to benchmark itself with others and raise
programs to benchmark themselves with their peers
resources for expansion and/or future operation
• Ranking project should be hosted on the common industry platform for ease of
use and require at least two updates from the program every year
• Further, the ranking should include feedback from start-ups (current and
alumni), partners, investors, corporates and other enablers
Call for Action • Ranking results should be made accessible and available on-demand for
ecosystem stakeholders
• Lastly, learnings from the application should shared with all the participants to

Ecosystem improve ecosystem’s odds of success

State Govt. Central Govt.
Enablers

61
Augment national ranking project with cash-in-grant for best
performing programs

Challenge

Recommendations
• Current policies and schemes are designed to identify a beneficiary and then
deploy capital in phases
• Leverage the national ranking project for incubators and accelerators to
• There is not structure in place to incentives better-than-committed
performance solve for “discoverability” of a appropriate program for a corporate

• Identification of a beneficiary is typically through a once-in-a-year application • Create four zones based on performance to benchmark the start-ups in:
process • Nurture (lowest)
• This leaves possibility of quality programs missing out or not applying • Break-out
• Execution
• Leadership (highest)
• Create a fund – state, central and corporate CSR corpus – to award one-
Call for Action time cash-in-grant to programs in the Leadership zones once-in-a-year
• Cash-in-grant must be used to fund the program

Incubator
State Govt. Central Govt. Corporates
Accelerator

62
National Innovation Fellowship to attract high-quality and experienced
founders to engage with incubators

Challenge

Recommendations
• Incubator or accelerator programs are only effective if they have right
management team equipped with best-in-class processes, frameworks and
playbooks • Institute an innovation fellowship program to attract individuals with prior
• Fundamental challenge in effectiveness of present incubators and accelerators hands-on experience in building start-ups
is the lack of qualified and high-quality talent for operating the program • 2 innovation fellow should be mapped per incubator and accelerator
• Key challenge here is inability of programs to offer right incentives to attract and • Prior work experience in the sectors relevant to I/A
retain the talent; and resources to train fresh talent
• With an objective to accelerate time-to-market for start-ups
• Fellows should be trained in the best-in-class processes, frameworks and
playbooks for them to operate from a common baseline – and then iterate
depending on the needs of specific program
Call for Action
• Emphasis must be on the quality and not quantity on fellows for the fellowship
to be respected globally

Ecosystem
State Govt. Corporates Central Govt.
Enablers

63
Build playbooks for corporates to deploy CSR corpus effectively and efficiently

Challenge

• Only 71% of corporates liable to make CSR expenditure are actually

Recommendations
deploying funds.
• Current CSR expenditure by corporates is only 57% of the prescribed amount
• Leverage the national ranking project for incubators and accelerators to
by the Companies, Act.
solve for “discoverability” of a appropriate program for a corporate.
• Of this only Rs. 14.56 Cr. is actually being deployed to Technology Business
• Build playbooks for corporates to,
Incubators, with the total deployment being a minuscule Rs. 68Cr. in past 4
years.
• Identify the right program

• Core challenge is absence of clarity on the regulation and inability of • Build internal proposals for possible partnership
companies to identify the right partner. • Deploy funds with clarity on legal, financial and other aspects like
governance (and reporting as per Companies, Act.)
• Monitor progress of the recipient program
Call for Action • Engage employees to contribute to the program without affecting their
day job
• Run awareness campaigns to share playbook and success stories.

Ecosystem Incubator
• Emphasis on importance of creating jobs and leveraging technology to meet
Corporates
Enablers Accelerator
nation development goals.

64
Increase cross-border collaboration with international research labs, incubators,
and accelerators

Challenge

• Incubator or accelerator programs are only effective if they have right

Recommendations
management team equipped with best-in-class processes, frameworks and
playbooks
• Additionally, program’s success is dependent on it’s ability to provide market • Institute an immersion program for leading incubators and accelerators to visit
access to the start-ups global ecosystem to interact with their peers
• Today, cross-border start-ups in India prefer overseas programs as they
• Leverage the National Ranking Project to select the Top 25% programs in the
provide market access and have strong operating team
country for these immersion programs
• Key challenge is the time required to build a strong program team and direct
• Enable 1-1 connects – by sector, business model and stage of the start-ups in
market access capabilities
the program
• Provide best-practices for program managers to define and build win-win
partnership with their peers
Call for Action
• Emphasis must be on the quality and not quantity of partnerships
• Emphasis must be on the value created for the start-ups – that is, the end
beneficiary of the effort
Ecosystem Academic Incubator
Enablers Institutions Accelerator

65
Prioritize thematic incubators at public research labs and universities in sectors
critical for national growth

Challenge

Recommendations
• There is a clear and strong emphasis from the Government to build technology
and innovation capabilities in India for national growth
• However, there is also a need to take “System of Innovation” approach that
enables sector, regional and national policies to act in-tandem to improve odds • Focus on sectors of national importance like – defence, healthcare, agriculture,
of success energy, environment, waste management – with a mandate to create self-reliance
• One such action would be to focus on depth by increase knowledge sharing • Build sector specific “Centre of Excellence” (CoE) for each priority sector
and transfer between research labs, academic institutions and start-ups • Leverage the national ranking project to select host institutions
• Encourage public research labs and academic institutions to collaborate to build the
“Centre of Excellence” to build a add capability of converting technological research
into a market ready product
Call for Action • Augment CoE with sector specific sandboxes and panel of policy makers to improve
of ease of doing business
• Catalyse corporates to engage with CoE to create market opportunities for start-ups
and corporates
Academic Incubator Ecosystem
State Govt. Central Govt. Corporates
Institutions Accelerator Enablers

66
Enable corporates to build, launch and operate customized start-up
collaboration programs

Challenge

Recommendations
• Over the past two decades, the global Fortune 500 have been building open
innovation capabilities consistently as part of their core growth strategy
• Build playbooks for corporates to
• More critically, global MNCs have realized the need to customized programs
• Identify the right collaboration models for their objectives
and not use lift-and-shift models
• Identify critical areas with focus on tangible business outcomes
• While there has been an increase in start-up collaborations among Indian
large enterprises – there is clear need for adopting contemporary approaches
• Build internal processes to involve right stakeholders at right time

faster than their global peers • Create a strong tangible value propositions for start-ups
• Identify, source and on-board right start-ups
• Provide post selection support to ensure the right PoCs / prototypes are
being built
Call for Action • Define clear action plan for each start-up post-program
• Create forums for the operators to share knowledge
• Run awareness campaigns to share playbook and success stories

Ecosystem
• Emphasis on importance of nurturing local innovation ecosystem for overall
Corporates
Enablers
growth of the economy, and the large enterprise itself

67
Case Studies
Case Study T-Hub set-up Lab32 to provide additional value to start-ups, via
Public Program
structured mentoring process, over and above co-working

Incubator: Lab32 Location: Hyderabad Year of Inception: 2018

Lab 32 is an incubation program launched by T-Hub. The program is Illustrative start-ups

specially designed for early stage product start-ups and supported by
Mentors, Partners and Investors.

In addition to co-working space at the State of art T-Hub campus, start-ups get
Offerings
access to market, curated playbooks and mentorship support.

Cohort-based program with clearly defined focus of supporting early stage tech
Unique Value product start-ups. Once onboarded, start-ups go through playbooks designed in
Proposition different areas including Customer development, Product, Go-To-Market, Sales
& Marketing and Funding.

Key Highlights

Benefits per start- Awards

120+ Alumni Start-ups $400 K up 50+ Won

Note: start-up definition not same as per NASSCOM Zinnov India

Source: T-Hub Illustrative / Not Exhaustive 69
Landscape Report (all editions)
Case Study Kerala Start-up Mission, as an umbrella organization, is stitching
Public Program
together a end-to-end support ecosystem for start-up

Incubator: Location: Trivandrum, Kochi Year of Inception:

Kerala Start-up Mission and Calicut 2006
Illustrative start-ups
Set-up in 2006, Kerala Start-up Mission was founded for development of
entrepreneurship incubation activities in Kerala.

The Start-up Mission provides world class Co-working Space, Mentorship &
Business Development Counselling, Networking Opportunities, Technology
Offerings
Support, International Market Access, Peer to Peer Mentorship Sessions,
Financial Support, Industry Connect.

• Specialized Incubators and thematic Accelerators (International Accelerator

Unique Value Program (BRINC) for Hardware, LogX with DP World, for Logistics sector)
Proposition • Early Stage funding, Fund of Fund Scheme and Monthly Investor Cafes
• Government as Market : Direct Procurement from Start-ups

Key Highlights

Start-ups1 Total
2200+ Supported $ 72 Mn+ Funding 800+ Investors

Bagged ‘Top Performer’ in State Start-up ranking Exercise 2018

Note: start-up definition not same as per NASSCOM Zinnov India

Source: Kerala Start-up Mission Illustrative / Not Exhaustive 70
Landscape Report (all editions)
 Case Study
Public / Government
NASSCOM’s flagship program 10,000 START-UPS was the trend
Program setter for policy makers and ecosystem to unite

Incubator: NASSCOM 10000 Start-ups Location: Multiple cities Year of Inception: 2013
Illustrative start-ups
10000 Start-ups is an initiative by NASSCOM committed to scale up start-up
ecosystem in India by 10x. It aims to build a vibrant ecosystem for technology
entrepreneurship in India and build the largest platform to connect with the tech
entrepreneurship community.

The incubate and virtual incubate programs help start-ups scale their operations,
connect with investors, establish contact with corporates and a network of mentors who
work closely with start-ups on aspects such as start-up survival rate, generating more
business, better product concepts, go-to-market strategy etc. Each warehouse (physical
Offerings space) is supported and funded by the respective State Government and backed by a
Steering Committee.
Its market access program is focused on bringing benefits to start-ups through
Government partnerships & initiatives; corporate innovation programs through NIPP;
and Global Access Program focused on key global markets such as the US, Japan,
Israel, China, Europe etc. to facilitate collaboration for Indian start-ups and help scale
their operations globally.

10,000 Start-ups is one of the largest start-up programs bringing together key
Unique Value stakeholders of the ecosystem including start-up incubators/accelerators, angel
Proposition investors, venture capitalists, start-up support groups, mentors and technology
corporations. The start-up machinery within NASSCOM including policy & advocacy,
Global Trade and Research teams work together to enable start-up growth.

Key Highlights

Alumni Start- Funded Start- Global Product

4000+ ups 400+ ups 300+ Immersions 100+ Concepts

Note: start-up definition not same as per NASSCOM Zinnov India

Source: NASSCOM Illustrative / Not Exhaustive 71
Landscape Report (all editions)
Case Study IIT Madras has arguably the best track-record among all academic
Academic Program
programs

Incubator: IIT Madras Location: Chennai Year of Inception: 2013

IITM is empowering entrepreneurs to address national challenges through Illustrative start-ups

successful, self-sustaining companies. It coordinates and leverages the synergies
in various strands of excellence driving innovation & entrepreneurship.

Provides access to world class R&D infrastructure along with mentoring in tech
Offerings
& market entry by eminent experts, alumni and industry heads.

The incubation cell has also launched the Entrepreneur-in-

Unique Value
Residence program where incubates have the unique opportunity to interact
Proposition one-on-one with accomplished entrepreneurs.

Key Highlights

Start-up
$ 227 Mn+ Funding Raised 186+ Graduated

Won National Award for emerging TBI, 2017 from DST GoI

Note: start-up definition not same as per NASSCOM Zinnov India

Source: IIT Madras Illustrative / Not Exhaustive 72
Landscape Report (all editions)
Case Study SINE, at IIT Bombay, has been instrumental in supporting deep-tech
Academic Program
start-up ecosystem in India

Incubator: IIT Bombay Location: Mumbai Year of Inception: 2004

SINE, is an umbrella organisation at IIT Bombay for fostering entrepreneurship Illustrative start-ups
and nurturing tech start-ups. It provides a holistic environment to translate
knowledge and innovation into creation of successful entrepreneurs.

The Start-up Mission provides a hybrid model of support to start-ups with both
Offerings facilities of Incubator and Accelerator. It provides financial support, technical
support, testing and product certification and visibility to its incubatees.

Unique Value SINE has collaborated with Intel India Makers Lab programme to fuel
Proposition innovation and entrepreneurship in the Indian hardware space.

Key Highlights

Start-up
$ 170 Mn+ Funding Raised 140+ Graduated

Selected as “CoE” by Government of India with funding support to scale up

Note: start-up definition not same as per NASSCOM Zinnov India

Source: Society for Innovation & Entrepreneurship (SINE), IIT BOMBAY Illustrative / Not Exhaustive 73
Landscape Report (all editions)
Case Study NetApp Excellerator is designed as a business accelerator to
Corporate Program
engage deep-tech start-ups for joint go-to-market

Accelerator: NetApp Excellerator Location: Bengaluru Year of Inception: 2017

Illustrative start-ups
NetApp Excellerator program was launched on foundations of fostering
innovation, encourage divergent thinking start-ups and value creation

In addition to equity free grant, the NetApp Excellerator provides technology &
business mentorship, investor connects, Access to tools and Customer access
Offerings
to start-ups. The program also provides opportunity to work with NetApp
Business unit teams.

Unique Value Cohort-based program for start-ups operating in cloud, the Internet of Things,
Proposition Big Data, Analytics, data storage, virtualization and data management

Key Highlights

Alumni Start- $40 Funding GTM

24 ups Raised 100+ Opportunities
Mn+
Won ‘Best Corporate Accelerator’ award at Zinnov Confluence in 2018

Note: start-up definition not same as per NASSCOM Zinnov India

Source: NetApp Excellerator Illustrative / Not Exhaustive 74
Landscape Report (all editions)
Case Study Cisco Launchpad is designed as a technology accelerator to assist
Corporate Program
deep-tech start-ups to build market ready products

Accelerator: Cisco LaunchPad Location: Bengaluru Year of Inception: 2016

Illustrative start-ups
Cisco LaunchPad program focuses on propelling deep-tech start-ups with
disruptive technologies on their growth journey.

• Cisco’s core competency in product engineering

• Access to Cisco technology product suite
Offerings
• 6-month intensive mentorship through curriculum
• Proof of Concept / Technical Integrations / Joint GTM

• SMEs - Cisco’s founders forum, Investment team & Tech evangelists

Unique Value • Sales expertise of Cisco teams to define joint GTM strategy
Proposition • Alumni engagement program – Investor, Partner connects and Global
events

Key Highlights

Alumni Start- Raised follow- Cisco Technical

41 ups 54% on 60+ Mentors 27 integration

Note: start-up definition not same as per NASSCOM Zinnov India

Source: Cisco Launchpad Illustrative / Not Exhaustive 75
Landscape Report (all editions)
Case Study While accelerator program at Credit Suisse focuses on building a
Corporate Program
start-up community, Esselerator program by Subash Chandra
Foundation is collaboration driven

Accelerator: ocialise. Engage. Inception Year: Location:

Transform Engagement Framework Location: Pune Accelerator: Esselerator Inception Year: 2018
2019 Mumbai

The program focuses on building a small start-up Zee Group’s Esselerator program focuses on enabling
community that engages with Credit Suisse on an ongoing early and growth stage start-ups to win commercial
basis through multiple engagement formats contracts and equity investment from Essel Group

POC, Projects, Co-Creation, Knowledge sharing Grants for start-ups and cohort-based program with
Offerings Offerings
sessions deep dive sessions for building Proof of Concept

Start-ups get to work on real-life business challenges Zee Group’s niche experience in Media &
Unique Value Unique Value
and get an opportunity to be mentored from Credit Entertainment helps start-ups to work directly with
Proposition Suisse experts
Proposition teams from Zee TV, Zee Music, Zee5 and Zee Media

Illustrative start-ups Illustrative start-ups

Fintech start-ups

Source: Credit Suisse and Esselerator Note: start-up definition not same as per NASSCOM Zinnov India
Illustrative / Not Exhaustive
Landscape Report (all editions)
Case Study Upekkha has a unique business model where success of program
Private Program
is directly tied with start-up’s success

Accelerator: Upekkha Location: Bangalore Year of Inception: 2017

Uppekha is working with Indian SaaS -based start-ups and calls itself to be a Illustrative start-ups
‘Catalyst’ rather than an accelerator. Focus of the program is progress in a
business metric such as revenue, gross margin, ownership and building moats

Upekkha conducts 2 year intensive program to help start-ups find their product
Offerings market fit and become a Value SaaS business through mentorship & peer
learning

What makes Upekkha different from other I/A programs in the country is the
Unique Value
agreement with the start-up where the start-up share equities and revenue
Proposition share only upon hitting a pre-set milestone

Key Highlights

$ 12 Mn Funds Raised 20+ Start-ups supported

Note: start-up definition not same as per NASSCOM Zinnov India

Source: Upekkha Illustrative / Not Exhaustive 77
Landscape Report (all editions)
Case Study Axilor has adopted a data-led growth strategy that constantly
Private Program
iterates program to create value for start-ups

Accelerator: Axilor Accelerator Location: Bangalore Year of Inception: 2014

Illustrative start-ups
Axilor is founded by some of the most respected entrepreneurs with the vision of
improving the odds of success of entrepreneurs in their first 24 months

In addition to the program, the selected start-ups get some upfront funding to
Offerings help them run growth experiments. The 100 day Axilor Accelerator program is
simply one of the fastest ways to build a high growth business and get funded.

Axilor’s enterprise network program, AXENT, enables start-ups to connect with

Unique Value
the large corporates and stakeholders across industries. This makes finding
Proposition and signing up customers easy and strike go-to- market partnerships.

Key Highlights

$28 Funding Alumni Start-

Raised 120+ ups
Mn+
Bagged “Accelerator of the Year” award in 2019 by Apex

Note: start-up definition not same as per NASSCOM Zinnov India

Source: Axilor Ventures Illustrative / Not Exhaustive 78
Landscape Report (all editions)
Case Study
Global Initiative China - World's Most Successful Start-up Program

Torch Programme

Description Impact
Year of Inception: 1988
The Torch Programme is a guidance programme for developing new/high tech industries in
China, It was approved by the State Council and is implemented by the Ministry of Science and • Torch Programme set-up 54 STIPs and 32
Technology. It has four major parts: Software Parks.

• Innovation Clusters: Industries have a competitive advantage when related companies • By 2011, there were a total of 1034 TBIs
cluster in a geographical location. Hence, The Torch program created Innovation Clusters by across China, including 336 as National
creating national Science and Technology Industrial Parks (STIPs), Software Parks, and
Productivity Promotion Centers incubators.
• Since, Innofund’s establishment, there’s
• Technology Business Incubators (TBIs): To boost start-up growth, TBIs were established
inside Innovation Clusters providing start-ups with office space, free rent, access to university been over 35,000 applications with 9,000
technology transfer, etc. projects approved and close to a $1 billion

• Seed Funding (Innofund): Innofund is designed to bridge early stage technology companies allocated.
that have innovative technology and good market potential but are too early for commercial • Innoway, the government-backed start up
funding (banks or VCs). It offered start-ups with grants ($150 – $250K), loan interest
subsidies and equity investment village, Zhongguancun has successfully
incubated 2900 start-ups and raised a
• Venture Guiding Fund: In order to VC’s focused on funnelling more VC money into growing
start-ups, Ministries of Science and Finance set-up “ Venture Guiding Fund”. The Fund total of 9.1 billion RMB.
invests directly into VC funds, co-invests with VC’s, and covers some VC bets

Note: start-up definition not same as per NASSCOM Zinnov India

Illustrative / Not Exhaustive 79
Landscape Report (all editions)
Case Study Canada - Fostering grassroot level entrepreneurship with monetary
Global Initiative
policies and incentives

Incubators and Accelerators Driven by Excellence

Canada accelerator and incubator program (CAIP)
(IADE) Initiative

Description Description

Year of Inception: 2013 Year of Inception: 2019

The CAIP was is administered by NRC-IRAP and is a component of the Federal Government launched the IADE initiative. Under this initiative,
Venture Capital Action Plan ( VCAP). The program aimed at establishing Government will award Quebec business incubators and accelerators that
a critical mass of outstanding business incubators and accelerators that stand out for their excellence. The initiative is intended to position incubator
can develop innovative, high-growth firms, which themselves represent and accelerators so that they can better meet the needs of start-ups and
superior early stage investment opportunities. thus help increase their number, further foster their scale up, and boost their
global competitiveness.

Key Offerings Key Offerings

• The CAIP is a $100 million non-repayable contribution program • $12 million will be awarded to Quebec business Incubators and
• The program will distribute the fund over the course of 5-year Accelerators
• Funds will be distributed over the course of 4-year

Impact
• As of 2019, ~$96.9 million has been distributed
• 16 Incubators and Accelerators were funded under the CAIP
programme

Note: start-up definition not same as per NASSCOM Zinnov India

Illustrative / Not Exhaustive 80
Landscape Report (all editions)
Case Study United Kingdom - Programs focusing extensively on research and
Global Initiative
innovation

Structural Funds support for research, technological Fund to boost collaboration between universities and
development and innovation (RTDI) small businesses

Description Description

Year of Inception: 2006 Year of Inception: 2019

Structural Funds support for RTDI now amounts to €10.5 billion in the The fund will be available to universities to develop and extend university
form of grants. 97% of this support is made through the ERDF. Around incubators into University Enterprise Zones (UEZs). The aim of UEZs is
8% of total ERDF resources are invested into research and innovation. to help strengthen links between research and expertise developed in
universities, and align this with the needs of local businesses.

Key Offerings Key Offerings

• Research projects based in universities and research institutes receive • A £10m fund managed by Research England, to facilitate interactions
about 26% of total RTDI investment (some €2.7 billion) between universities and small businesses.
• Research and innovation infrastructure (public facilities, tech transfer
• Between £500,000 and £1.5m will be available for up to ten
centres & incubators) receives slightly over 25% of the total,
universities to develop and extend university incubators into
amounting to some € 2.8 Billion
University Enterprise Zones (UEZs).

Note: start-up definition not same as per NASSCOM Zinnov India

Illustrative / Not Exhaustive 81
Landscape Report (all editions)
Case Study Israel - Enabling collaboration between start-ups, universities,
Global Initiative
corporates and government agencies

Incubators Incentive Program Innovation Labs Program

Description Description

Objectives of the program: The Innovation Labs program is designed to provide entrepreneurs with
• Direct route ("the light route") - cultivate selected incubator projects of an access to unique technological infrastructure, market insights,
interest through investment and strategic partnerships. marketing avenues and industry expertise, in order to reach a proof of
• Licensing/Franchising route - become an incubator licensee. To create concept and transform technological ideas into products
infrastructure, select entrepreneurial projects for investment, provide
technological/business guidance to incubates.

Key Offerings Key Offerings

For Corporates: For Corporates:
• An eight year license in leveraging private investments with significant • 3 year license with the possibility to extend the license for additional 3
public funds and receiving substantial equity in start-up companies. years.
• Licensees in preferred peripheral regions receive a conditional grant • The Authority will fund up to NIS 4 million for the lab’s establishment
for operational costs and the incubator’s infrastructure. (33% of the costs, 50% in the periphery areas), and up to NIS 500,000
• 20-50% equity in the incubated companies in return for a (50% of the approved budget) of the ongoing operating expenditures of
complementary 15% investment of the R&D costs. The Israel the lab, each year.
Innovation Authority funds the other 85% of R&D costs for no equity. For Start-ups:
• A conditional grant of up to NIS 850 thousand over a period of 1 year
(85% of the approved budget).

Note: start-up definition not same as per NASSCOM Zinnov India

Illustrative / Not Exhaustive 82
Landscape Report (all editions)
Case Study Singapore & USA - Holistic support for high potential start-ups and
Global Initiative
start-up programmes

Singapore - Start-up SG Accelerator USA - Growth Accelerator Fund

Description Description

Year of Inception: 2017 Year of Inception: 2009

Start-up SG Accelerator supports incubators and accelerators U.S. Small Business Administration launched the Growth
in strategic growth sectors that take on the role of catalysing Accelerator Fund competition for the nation's most innovative
growth opportunities for high potential start-ups through their and promising small business accelerators and incubators to
programmes, mentorship and provision of resources. compete for monetary prizes

Key Offerings Key Offerings

The funding support under Start-up SG Accelerator may cover • $3 Million fund for High Tech, Small Business Focused
the following costs: Accelerators
• 60 incubators and accelerators will receive $50,000
• Programmes to nurture start-ups: Costs of developing each
programme(s) that help start-ups develop new products and
services, obtain business financing, improve market access,
etc. Impact
• Mentoring start-ups: Hiring of mentors & experts to
provide management and technical guidance to start-ups. • Accelerators and incubators across 39 states and territories
• Operating expenses (partial): Enterprise Singapore will focused on a broad set of industries and sectors, will receive a
determine components of operating costs we can support, total of $3 million in awards to support start-ups and
such as salaries for the incubation team. entrepreneurs researching and developing STEM-related
innovations.

Note: start-up definition not same as per NASSCOM Zinnov India

Illustrative / Not Exhaustive 83
Landscape Report (all editions)
Note for Reader
Target Audience

• The Incubator and Accelerator Landscape can be used to identify the key trends in the I/A ecosystem
• Policy Makers • Report can help organizations identify the areas in which I/A are being established

• Corporates • It gives an indication of the locations with the maximum intensity of I/A and the various mechanisms used to nurture start-
up ecosystem
• Incubators
• Report provides a breakdown of the industry verticals where I/A are being operated, with a view on the potential themes
• Accelerators that newer I/A can explore

• Start-ups • Report gives a breakdown of the key challenges faced by different segments of I/A and identifies potential policy measures
required to systematically improve capability of I/A in India

WHAT HAS BEEN RESEARCHED?

What are the major drivers that have spurred the evolution of Incubators and Accelerators (I/A)?

How many Incubators/Accelerators operate in India? How has their number grown over the years?

Which locations in India house the majority of Incubators/Accelerators?

Which industry verticals have the greatest presence of Incubators/Accelerators?

Which type of incubators and accelerators are most prevalent in India? How has their number grown?

What are the biggest challenges for Incubators/Accelerators in India?

What policy measure might be required to improve capability of Incubators/Accelerators in India?

85
Methodology

Phase 1 : Phase 2 : Phase 3 :

Secondary Research Primary Research Final Report

NASSCOM Database

Zinnov Database
1-1 interviews and surveys with
AIM, DST, MSME, MeitY, Start-up a large number of incubators, Incubator Accelerator
Data Aggregation India websites accelerators, start-ups and Landscape and Trends
investors
Program Websites

News Articles and Publications

86
Definitions

Program Type

An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that include
Incubator
physical space, capital, coaching, common services, and networking connections.

Accelerators are entities or organizations that help start-ups attain success by providing support to start-ups in building prototypes, scaling by providing help for
Accelerator fundraising, brand building, customer growth. They provide various offerings for start-ups including shared resources, developer tools, client specific solutions, investor
connect and mentorship.

Scaleators are entities which are typically focused on growing the start-ups business and bring appropriate expertise to fore. They come in picture during the growth stage
Scaleators
of a start-up and help them to scale up.

Operator Type

Accelerator and Incubators that are organized and funded by the government. E.g. Kerala Start-up Mission, Atal Innovation Mission, Maharashtra Innovation Mission,
Public
iCreate, Lab32, Rajasthan Techno hub, NewGen IEDC, Start-up Dreams, Karnataka Innovation & Technology Society

Accelerator and Incubator programs that are managed and conducted by educational institutes. E.g. IIT Bombay(SINE), IIM-Bangalore(NSRCEL), National Institute of
Academic Technology, Karnataka – STEP, IIT- Delhi Technology Business Incubator, Malviya Center for Innovation – IIT BHU, IIIT – Hyderabad, IIM- Ahmedabad(CIIE), Amity
Innovation Center

Accelerators and Incubator programs that are owned or run by a private entity for mentorship, investment or equity purposes. Majority of programs take 5 – 8% of equity
Private from start-ups. E.g. 500 start-ups, AdvantEdge, 50K Accelerators, Aarambh Ventures, Incube Ventures, Khosla Labs, N/Core Tech, Neoleap, Padup Ventures, Seedfund,
Spark10, Techstars, UnLtd India

These are company supported programs of limited duration that support cohorts of start-ups during the new venture process via mentoring, education and company
Corporate specific resources. E.g. Barclays, Google Launchpad, NetApp, Brigade Group, Bosch, Yes Bank, Veddis Venture, Rolls Royce, GE Healthcare, Viacom18, Jio GenNext,
Tata motors, HCG, Shell, SAP, Nvidia, Oracle

Source: Zinnov CoNXT Research & Analysis 87

Acknowledgement

This report has been developed through a comprehensive study to understand Incubator and Accelerator landscape in India.

The preparation of this report has been facilitated by a number of organizations and people who have extended great help to the
research team. We wish to sincerely thank all of them for their valuable contributions without which this report would not have been
possible. A special thanks to Zinnov for helping us build the report.

Research Team

INDUSTRY EXPERTS
• Sangeeta Gupta
• Achyuta Ghosh
• Ashish Gupta
Ridhish Talwar, Investorpreneur, Madhurima Agarwal, Leader, NetApp
AdvantEdge Excellerator
Data Aggregation
Poyni Bhatt, CEO, Society for
Ameya Waingankar, CEO, AIC
• Surveys • NASSCOM Innovation & Entrepreneurship, IIT
Aartech
• Primary Interviews Bombay

Venugopal Ganapathy, Co-founder & Shilpasree Nagaraja, Societe

Secondary Research CEO, Axilor Ventures Generale
• Department of Science & Technology (DST), GoI
• Ministry of Electronics and Information Technology (MeitY),
Sruthi Kannan, Head, Cisco Thejus Joseph, Incubation Manager,
GoI LaunchPad Start-up Accelerator T-Hub
• Atal Innovation Mission (AIM)
Tom Thomas, Project Director, Kerala Radhesh Kanumury, Managing
Start-up Mission Partner Arka Venture Labs

88