CHENNAI: Three sectors received nearly two-thirds of the venture funding in the last 17 years, according to a study by the Indian Institute of Technology-Madras, that was released on Saturday.
Software & internet services, consumer products, and fin tech & payments account for 63 per cent of the companies nationally that received venture funding, the study said.
The institute released its tenth annual report on Indian venture capital and private equity focusing on the “Success and Impact of Start-Ups” during TiECON Chennai, an annual entrepreneurship conference, held on Saturday.
While close to 1.26 million companies were formed during 2000-17, only around 0.5 per cent were able to get venture funding. The new report has identified the factors associated with successful ventures in different stages of their lifecycle. This would help entrepreneurs to better prepare their ventures for success and thus enhance the impact that can be achieved.
Editor and co-author of the publication since its inception in 2009, Thillai Rajan, Department of Management Studies, IIT-Madras, said, “start-ups have captured the imagination of government, investors, students, and entrepreneurs, because of the impact they have been able to create in different sectors and areas of policy importance.” He said that, however, to be able to create an impact, the start-ups must be able to get subsequent rounds of funding. The study also found that the location of the start-ups plays
a role in getting access to funding.