Startup India

TiE’s established ecosystem, for example, has its network of entrepreneurs mentoring aspirants. “People don’t give enough credit to the kind of mentoring that is available to entrepreneurs now,” says Deep Kalra, CEO, MakeMyTrip. “Mentoring is the most important input that a young entrepreneur can get today because it can save him a lot of effort and time and stop him from going in the wrong direction.” Kalra mentors at least one entrepreneur every week.

He believes established players like MakeMyTrip and Naukri that have been operating for over a decade have added credibility to the start-up business. And their listing was rewarding for both their investors and employees — MakeMyTrip gained 89% and Info Edge 94% on the day they were listed in August 2010 and November 2006, respectively. If MakeMyTrip’s market cap is currently $514 million, Info Edge has soared to about $670 million; and inMobi and Flipkart were being valued closer to $750 million to $1 billion based on their last round of funding.

It’s technology that lifts Indian entrepreneurs to the same playing field as their global peers. “The only difference is that the amount that gets invested in the US is significantly larger,” says DFJI’s Andra. Look at the numbers: VC investors in the US poured $32.6 billion into 3,209 venture deals in 2011. During the same time, in India, VC funds invested $935 million across 180 deals, according to VCCircle.

“The US is a more developed market so there are many opportunities. There is also a lot more entrepreneurial experience since everyone in Silicon Valley has worked in a start-up,” says Kanwal Rekhi, managing director, Inventus Capital, who works with entrepreneurs in Silicon Valley as well as India. “But we have seen some innovative ideas coming from India. Certainly, Indian entrepreneurs are a lot more mature now than they were 10 years ago.”