Almost 70% of start-ups globally will fail: Infosys co-founder Kris Gopalakrishnan

Infosys Co-Founder and former CII President Kris Gopalakrishnan on Monday, said almost seventy per cent of start-ups globally will fail and only five to ten per cent will become large and scale up.

"Almost seventy per cent of start-ups will fail. About 20% will survive but will not grow. They will remain small enterprises, and may be only five to ten per cent will become large and scale up - that is the spastics globally," he told reporters at the announcement of the 12th Innovation Summit 2016 here, of which he is the chairman.

This should not, however, be treated as a concern or a challenge, but it is a part of natural process of evolution, he added.

"The key is what are the learnings, and how do we continue to nurture this," he said.
Asked who has made a mark globally as of now, Gopalakrishnan said Flipkart and Snapdeal have made a mark and may be in three to five years from now, people would start talking about these companies in a big way.

"I would say Flipkart and Snapdeal - these companies have made a mark. Paytm and Freshdesk - there are so many of them actually. They have made a mark and that process will continue. May be three years from now and five years from now, you would start talking about these companies in a big way," he said.

Asked if it is a worrying factor that most of the e-retailers are not making profits, Gopalakrishnan said there will be some consolidation and hoped some Indian-started entity will remain because global domination is possible in the internet field as it is not bound by any borders.

"When you look at transport, hospitality, logistics - these are the companies, which will be the names in future in years to come," he added.

Replying to a query, Gopalakrishnan said both private equity and venture capital funding has slowed down for different reason because the exits are not happening.

"Both private equity and venture funding have slowed down for a different reason because exits are not there. When this happens, money is not recycled," he said.

"Most of the venture funds are waiting for some exits to happen and the exits are happening through mergers and acquisitions - consolidation where you may no be able to get the full value of investment," he said.

Asked if he sees a Google-type company emerging out of India, Gopalakrishnan said, "Yes it is possible, but we also need to remember that, across the world there is one Google."

Banks disburse over Rs 1.15 lakh crore under PM Mudra Yojana

Banks have so far disbursed over Rs 1.15 lakh crore under Pradhan Mantri Mudra Yojana (PMMY), financial services secretary Anjuly Chib Duggal said on Tuesday.

Micro Units Development and Refinance Agency Ltd (Mudra) focuses on 5.75 crore self-employed who use funds totalling Rs 11 lakh crore and provide jobs to 12 crore people.

Under PMMY, loans between Rs 50,000 and Rs 10 lakh are provided to small entrepreneurs.

"We have been working with Mudra. It has been a runaway success ... we are looking at Rs 1.15 lakh crore plus right now," she said at an event organized by MFIN here.

The scheme was launched by Prime Minister Narendra Modi in April last year.

Three products available under the PMMY are Shishu, Kishor and Tarun, to signify the stage of growth and funding needs of the beneficiary micro unit or entrepreneur.

Shishu covers loans of up to Rs 50,000 while Kishor covers those above Rs 50,000 and up to Rs 5 lakh. Tarun category provides loans of above Rs 5 lakh and up to Rs 10 lakh.

With regard to Banks Board Bureau, Duggal said, she would be meeting newly appointed chairman Vinod Rai this week to discuss operationalisation of this specialised body.

Last month Rai, a former CAG, was appointed head of Banks Board Bureau by Prime Minister Narendra Modi.

The bureau will give recommendations on appointment of directors in public sector banks and advise on ways to raise funds and mergers and acquisitions to the lenders.

There are 22 state-owned banks in India including SBI, IDBI Bank and Bhartiya Mahila Bank.

Besides, she said that there would be meeting of heads of the bank on March 22 to discuss about the recently launched crop insurance scheme by Prime Minister.

The crop insurance scheme scheme has already been approved by the Cabinet that would replace the existing ones to ensure that farmers pay less premium and get early claims for the full sum insured.

Investment Banking

36 Websites That Will Save Your Startup Time and Money

Here is a list of some of the best sites to know. They range from project management to motivation to e-commerce.

If you're in the process of launching a startup, you'll be happy to know the internet offers you a wealth of resources that will make your job as an entrepreneur much easier. One of the best ways to boost your productivity and chances of success is to bookmark and review sites that will help you excel as a business owner.

Here is a list of some of the best sites to know. They range from project management to motivation to e-commerce. The sites are in no particular order.

1. Ideator

So you've got a great idea that you'd like to turn into a business? Start with Ideator. It's a platform specifically designed for entrepreneurs like you who want to bring their million-dollar visions to life.

2. Tony Robbins

If you want to succeed as a business owner, you're going to have to unlock your potential. To do that, learn from the best: Tony Robbins. No better person to follow and learn from as you grow.

3. Ecwid

If you'd like to create an e-commerce site in just five minutes, stop by Ecwid.com. Currently, more than 900,000 sellers from around the world use Ecwid to sell products.

4. QuickSprout

As the name implies, QuickSprout is all about growth. It is quite possibly the best site on the internet for learning about digital marketing.

5. LinkedIn

If you want to be successful in business, you're going to have to forge alliances and create professional relationships with other people. There's no better online site for business networking than LinkedIn.

6. Healthcare.gov

You're going to need health insurance after you quit your job and launch your own business. Also, if you have employees, they'll need health insurance as well. Be sure to visit Healthcare.gov for your coverage options.

7. Inc.

You are on Inc.com now, so you know its great. But you can never learn too much about being an entrepreneur. There's always something more to know about the latest in marketing, financing options, management, and professional development. That's why you should bookmark Inc.

8 & 9. HipDial & Google + Hangouts 

To succeed in your entrepreneurial efforts, you'll almost certainly need to schedule group conference calls on occasion. For that, you should use HipDial. It is so simple and easy, which is why startups love it. An alternative option that incorporates video conferencing is Google + Hangouts. 

10. SBA

Uncle Sam has an organization that exists to help entrepreneurs just like you. It's called the Small Business Administration (SBA). The SBA's website is packed with helpful resources.

11. Due

If you want to streamline your invoicing and time tracking processes, you can't go wrong with Due.

12. WordPress

To create a successful online presence, you'll need a blog. Simply put, there is no better blog platform on the market than WordPress. But do not use Wordpress.com; instead, install the Wordpress content management system on your site.

13. TradeAway

If you're bootstrapping your way to success with limited resources, you might be able to get some professional assistance from somebody else who will ask for your assistance in return. Check out TradeAway for a place to barter your services in exchange for somebody else's.

14. Square

It's tough to make it in business these days if you don't take credit cards. Square gives you the opportunity to swipe cards from virtually anywhere.

15. Kayak

You're likely going to be doing some traveling as an entrepreneur. If you want to find the best flight and hotel deals, check out Kayak.

16. FreshBooks

Once upon a time, QuickBooks was the only "go to" solution for accounting. Nowadays, some entrepreneurs are flocking to the cloud-based solution offered byFreshBooks. Both are great solutions. Take your pick. 

17. BaseCamp

If your team is widely distributed across the continent, or even the world, you'll need an online hangout where you all can communicate, collaborate, and coordinate. For that, use BaseCamp.

18 & 19. Dropbox & Google Drive

If you're looking for a cloud-based solution for file storage, Dropbox and Google Driveare your two best bets. Both are free until you hit a certain limit.

20. LanguageTranslation

It's a global economy. You might want to translate your website into another language (in fact, I recommend it). For document translation services, enlist the aid of a company like LanguageTranslation.com.

21. StartupGrind

StartupGrind is a website where you can rub shoulders with like-minded business owners. There are over 400,000 active members in 85 countries. 

22. forEntrepreneurs

The name "forEntrepreneurs" is fairly descriptive. It's a blog run by David Skok, a five-time entrepreneur turned venture capitalist. It's a great site to visit from time to time for sage business advice.

23. A Smart Bear

A Smart Bear is a blog run by Jason Cohen, who offers advice for entrepreneurs. As of this writing, more than 40,000 people subscribe to Cohen's lessons.

24. Rocket Lawyer

You are going to have legal issues. For that, use Rocket Lawyer. I've used this on more than one occasion and saved thousands of dollars.

25. The Startups Subreddit

You might think of Reddit as a great place to check out funny cat photos or participate in an "Ask Me Anything" exchange with a famous celebrity. It's also a great place for gleaning information. Specifically, check out the Startups subreddit.

26. Copyblogger

Content marketing is an important part of online marketing. To that end, make sure you visit Copyblogger regularly.

27. CrunchBase

For practical purposes, everything you need to know about startup funding can be found at CrunchBase.

28 & 29. Search Engine Roundtable and Search Engine Land

If you want to keep up with the latest buzz about SEO best-practices, bookmarkSearch Engine Roundtable and Search Engine Land.

30 & 31. Upwork and Elance

If you're running a solo shop and you need some affordable, temporary help for your startup, be sure to visit Upwork and Elance. You'll find plenty of contractors who are more than happy to work with you at rock-bottom rates.

32. Fiverr.com

Another great site for finding affordable contract work for a variety of purposes (spanning everything from SEO to logo design) is Fiverr. As the name implies, prices for service start at just $5.

33. 99 Designs

If you're not an artist but are in desperate need of quality design work, visit 99 Designs. It is pretty unique the way it works. You actually launch a contest and then choose the winner, giving lots of options.

34. Marc & Angel Hack Life

As an entrepreneur, you'll always be in need of some great self-help tips. For some of the best life hacks, be sure to bookmark and regularly browse Marc & Angel Hack Life.

35. Moz Local

Moz Local is an especially great site to visit if you're a brick-and-mortar business that's in need of local SEO.

36. Ignite Visibility University

Another great library packed with information that will help you excel as a startup in the digital marketing area is Ignite Visibility University.

Sun Capital 

How Startups Reacted to the Union Budget 2016

Suncapital: The much awaited Union Budget 2016-17 has finally been unveiled today. In his presentation, Finance Minister Arun Jaitley announced a 100% tax deduction programme for 3 years over a period of five years for startups approved before FY2019 under the Startup India scheme.

Moreover, to ensure that only deserving enterprises get to reap the benefits of the “Start Up Action Plan”, the government has strictly defined the term ‘Startup’ as “a company which would have equity funding of at least 20% by incubation, angel or private equity fund, an accelerator or angel network registered with SEBI endorsing the innovative nature of the business.”

Jaitley in his presentation, expatiated on a series of policy initiatives and schemes that aim at eliminating the common challenges startups come across, and ensure that MSMEs in the country get a fillip. Few of the key highlights are:

1. No tax on income from Startups. 100% deduction on profits for startups for 3 out of first 5 years; MAT to apply.

2. Shortening of the holding period of from three to two years to get benefits of long term Capital Gain regime in case of unlisted companies.

3.Registration of a company will take no longer than just a day under the Government’s 1 Day Incorporation Policy.

4.The corporate income tax rate for the next financial year of relatively small enterprises i.e companies with turnover not exceeding Rs. 5 crore (in the financial year ending March 2015) is proposed to be lowered to 29 % plus surcharge and cess. The new manufacturing companies which are incorporated on or after 1.3.2016 are proposed to be given an option to be taxed at 25% plus surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.

Here’s how the Ecosystem Reacted to the Announcements:

NASSCOM welcomed the Union Budget 2016, while terming it as a mixed bag for the sector. The budget reiterates the 7.6% GDP growth rate for the country and provides a slew of incentives for the rural, agricultural sector to enable inclusive growth. Mohan Reddy, Chairman, NASSCOM said, “Our wish list for Budget 2016 included three key priorities – policy bottlenecks including ease of business; nurturing start-ups, products and eCommerce sector; and clarifications on transfer pricing to enable inward investments in India. Budget 2016 only partially covers these priorities. Extension of Section 10AA for SEZ units till 2020 is a positive outcome though the imposition of MAT on startups will not allow the full impact of the benefits to be realized.”

Expressing his happiness on Aadhar and IndiaStack, Vijay Shekhar Sharma, Founder and CEO, Paytmmaintained, “Finally, the government has provided legislative backing that will unleash the full potential of such an incredible platform. With the focus on digital payments and incentives to startups, the Finance Minister has boosted our Prime Minister’s Digital India and Startup India plans. Overall, the budget creates a strong foundation for sustainable growth in rural & urban India. Steps to further improve Ease Of Doing Business will drive entrepreneurship which is essential for job creation.”

Putting forth his opinion on the matter, Ajay Jalan, Founder & Managing Partner, Next Orbit Ventures said, “We welcome the initiatives taken by The Finance Minister Mr. Arun Jaitley, however we were looking forward for government support in creating a positive environment pertaining to venture capital (VC) and private equity (PE) funds in India, and bringing it at par with the global standards. We were expecting regulators should help unlock domestic capital pools by encouraging institutions regulated by them to invest in VC/PE asset classes. Pensions & provident funds should have been encouraged and investment limits for banks & insurance companies in VC/PE Funds could have been increased from 10% to 25%.

Here’s what Siddhartha Roy, CEO of Hungama.com opines- “The Union Budget 2016 has stepped in the direction to pave the way for rural digitization with a focus on digital literacy. The aim to connect 6 crore households will provide a stronger reach and deeper penetration for digital and technology driven services in rural India thus allowing residents a plethora of services. The digital literacy scheme announced by Mr. Arun Jaitley in rural India will not only give rise to increased manpower but also boost employment generation. The budget is an indication of the government’s resolve towards the Digital India scheme.”

Similarly, Manish Dashputre , Co-Founder, Medidaili, maintained, “We welcome the 100% tax deduction for start ups for 3 years as announced by the government today. However, tax exemption alone will not help spurt the government’s ambition of boosting the start up environment in India on a large scale. Exemption from indirect taxes including MAT would have greatly reduced the compliance burden. Even though the budget has announced several favourable measures, a clear framework to translate policy actions needs to be put in place to foster the start up ecosystem.”

Talking on the same line, Sumit Chhazed, Co-Founder, CredR  stated, “The Union Budget 2016 did not have much to look out for the start-up community, as we were hopeful to see some on-ground initiatives from the government to further ease regulatory clearances policies. Prime Minister’s declaration of 100% tax deductions for new startups for first 3 years is definitely an optimistic move towards nurturing entrepreneurship and facilitating ease of doing business. Government’s effort to provide skill development and training to youth along with implementation of digital literacy will help further providing a boost to the start-up ecosystem. We are hopeful to see more immediate action from the government in fostering a conducive environment for the entrepreneur community.”

Likewise, Pramod Saxena, Chairman and MD, Oxygen Services is of the opinion that  the general direction of the budget as it lays emphasis on development of the rural sector, digitization and reforms in banking is right.  He said, “The digital literacy mission that has been announced which will target 6 crore households with financial literacy, with this the digital connect and payments connect will play an important role. Also, statutory status to Aadhaar will play a very big role in promoting digital payments, social benefit transfers and allowing several services beyond banking & insurance to be also be brought into its fold, whether it is government subsidies or government payments it will open a way for more government payments and subsidies to flow into the financial inclusion program.”

Last but not the least, expressing his thoughts on the subject, Manish Kumar, Co-founder & CEO GREX said, “We believe the Union Budget 2016-17 is well aligned with Prime Minister’s ‘Make in India’ and ‘Startup India’ campaign. The budget focuses clearly on growth, development, job creation and creating a better environment for doing business in India. Besides a particular focus on startups by giving them exemption on their profits for the first three years is a welcome move. The relaxation in capital gain tax for investment in Funds of Funds and reducing the time frame to two years from three for availing long term capital gain tax benefit in the unlisted space will further boost the investment in startups.” Adding further, he stated, “Keeping the ‘Digital India’ momentum rolling during the budget, introduction of electronic auction platform for the private placement market in corporate bonds is a welcome move.”

The Union Budget 2016 has been well accepted by the ecosystem, overall.  However, there is a certain uneasiness that the industry has expressed on the imposition indirect taxes including MAT. Moreover, the effective implementation of the policies that have been announced by the government, is also something that needs to be waited and watched. Nevertheless, the startup community in general, looks quite happy with the government’s emphasis on narrowing down the digital gulf in the country; a move that would definitely help budding enterprises grow faster and expand their footprint across geographies.

Sun Capital Advisory Services