ANDHRA PRADESH - Startup India · Andhra Pradesh has been evaluated on 7 distinct pillars which...

ANDHRA PRADESH EMERGING STARTUP ECOSYSTEM

STATES’ STARTUP RANKING 2019

2 ANDHRA PRADESH | EMERGING STARTUP ECOSYSTEM

Table of

Contents

1. Overview of State Startup Ecosystem ...................05

2. Snapshot of State Performance ..............................07

3. Pillar Wise Assessment ...............................................08

3.1. Institutional Support ..............................................................08

3.2. Simplifying Regulations .....................................................11

3.3. Easing Public Procurement ............................................13

3.4. Incubation Support ................................................................15

3.5. Seed Funding Support ........................................................17

3.6. Venture Funding Support ................................................19

3.7. Awareness and Outreach ...............................................20

5ANDHRA PRADESH | EMERGING STARTUP ECOSYSTEM

OVERVIEW OF STATE STARTUP ECOSYSTEM

The state of Andhra Pradesh has a well-structured startup ecosystem which focuses on incubation and institutional support. The state government launched its startup policy in 2014 under the Information Technology, Electronics and Communications (ITE&C) Department and is valid till 2020. Through this policy, the state intends to create a world class technology startup ecosystem by fostering entrepreneurship and a culture of innovation which contributes to increased knowledge, wealth and employment in the society.

01

SHARED INFRASTRUCTURE The state endeavours to create world-class shared infrastructure for technology startups that are: a) Product based to operate at no cost andb) Technology startups that are service based

to operate at nominal cost, till the company achieves self-sufficiency

ACCELERATORS/ INCUBATORS The state has an objective to establish at least one world class accelerator/ incubator by inviting global accelerators and incubators to set up their programmes in the state

FUNDINGThe state has an objective to create an innovation fund of INR 100 crore for entrepreneurs and businesses

INCENTIVES FOR STARTUPS The state aims to provide fiscal and non-fiscal incentives for startups. Some of these include reimbursement of sales tax, single window approvals & clearances as well as awards for innovation

HUMAN CAPITALThe state endeavours to work with universities, educational institutions and the industry to provide pre-trained manpower in emerging technologies and to foster a culture of entrepreneurship

THE STARTUP POLICY IS BASED ON FIVE PILLARS:


SOME KEY OBJECTIVES OF THE STARTUP POLICY:

• Establish 100 incubators/ accelerators• Incubate 5000 companies & startups • Develop one million square feet of

incubation space

• Mobilise venture capital fund worth INR 1000 crore for innovation

• Foster a culture of innovation • Create at least one home grown

billion-dollar technology startup

THE POLICY HAS GIVEN SPECIAL FOCUS TO THE FOLLOWING DOMAINS:

• Internet of Things• Social Media, Mobility, Analytics and

Cloud Computing (SMAC)• Fables Semiconductors• Animation & Gaming

• Entertainment• Visual Effects• Health and Fitness• Automotive

The nodal department for startups is the Information Technology, Electronics and Communications (ITE&C) Department and the nodal officer is the CEO of Andhra Pradesh Innovation Society (APIS)

The state also provides innovation support to startups in the electronic and information technology sectors. Startup companies with a turnover of less than INR 50 lakh per annum are eligible to submit proposals under this category. The focus is on innovative products that address societal problems. The startups with the most innovative products/ services are granted an amount of INR 1 lakh per product

The state’s startup portal is ‘apinnovationsociety.com’ and it provides the following services:

• Startup registration • Incubator registration• Mentor registration

• Investor registration• Application for various policy incentives

such as seed funding, IP support


SNAPSHOT OF STATE PERFORMANCE 02

Performance of the Best State in the pillar

Relative Performance of the State

The following representation details the status of Andhra Pradesh’s implementation on each of the 7 pillars of assessment. Data presented below is the percentile score.

Venture Funding Support

0%

Incubation Support

0%

Seed Funding Support

0%

Institutional Support

2%

Easing Public Procurement

3%

Awareness and Outreach

14%

Simplifying Regulations

10%

Andhra Pradesh has been evaluated on 7 distinct pillars which largely contribute to the growth of the startup ecosystem in Andhra Pradesh. The representation as expressed above depicts the relative performance of Andhra Pradesh in each of the seven pillars in comparison to the performance of the best state in that pillar.

Andhra Pradesh has shown progress in ‘Simplifying Regulations’ and ‘Awareness and Outreach.’ Although significant efforts have been made to enhance the startup ecosystem, the initiatives undertaken towards ‘Venture Funding Support’, ‘Seed Funding Support’ and Incubation Support’ require improvement since results have been negligible in these pillars.

Detailed analyses of this snapshot can be viewed in the subsequent section, with extensive insight into the initiatives taken by Andhra Pradesh to uplift its startup ecosystem.


PILLAR-WISE ASSESSMENT

The state has provided guidelines on the definition and registration process of startups. All details of the state’s startup policy are available online on the state’s startup portal.The definition of a startup as mentioned on the startup portal is:Any business entity which depends on either product innovation or process innovation to deliver products/ services to customers can be termed as a ‘startup’. It can be from any sector but should generate employment rather than an activity for self-sustenance.

KEY FACTS

1. INSTITUTIONAL SUPPORTInstitutional support envisages provisions and execution of the state’s startup policy including information on the nodal team within the state, online implementation system, registration of mentors and their listing on the state startup portal. The states are evaluated based on the laid provisions along with parameters of availing benefits through state intellectual property rights portal, establishing partnerships with institutions, providing special incentives for women led startups and entrepreneurship.

03

KEY STRENGTHSINTERACTIVE ONLINE IMPLEMENTATION SYSTEM

• The state has established an interactive portal for startups (apinnovationsociety.com). The portal allows startups to submit their applications for registration. After a startup is registered successfully, it is issued a registration certificate which can be downloaded from the portal.

KEY

STRE

NG

THS

• The online implementation system includes a detailed list of incubators, mentors, angels, details on upcoming events and user manuals.


KEY

STRE

NG

THS

• The portal has a provision of a dedicated helpdesk which can be reached via email and phone

• The state has developed an online dashboard on the website showing the number of startups registered, number of startups accelerated, bootcamps conducted, incubators supported, number of purchase orders awarded and other key performance indicators. The dashboard monitors the progress of all programmes and results achieved against defined targets

STRONG SUPPORT FOR WOMEN ENTREPRENEURS

The state provides benefits and incentives (fiscal and non-fiscal) to encourage women entrepreneurship. Women entrepreneurs can leverage benefits under the Andhra Pradesh Information Technology (IT) policy (2014 – 2020) and Industrial Development Policy (2015 – 2020).• Incentives under the IT policy for women entrepreneurs:

− General permission shall be available for three shift operations with women working during the night for IT/ Information Technology enabled Services (ITeS) units/ companies, subject to IT units taking the prescribed precautions in respect of safety and security of employees

− IT units established by Schedules Caste (SC) & Scheduled Tribe (ST) & women entrepreneurs shall be eligible for 50% subsidy on power bills for a period of five years from the date of commencement of commercial operations or INR 50 lakh, whichever is earlier

• Incentives under the Industrial Development Policy for women entrepreneurs:

− 35% investment subsidy on fixed capital investment by SC & ST entrepreneurs and additional 10% investment subsidy for SC women & ST women entrepreneurs, with a maximum limit per unit is INR 75 lakhs (i.e. 35% for SC & ST entrepreneurs and 45% for SC women and ST women entrepreneurs. Additional 5% investment subsidy for units set up in scheduled areas by ST entrepreneurs with a maximum limit per unit is INR 75 lakh

− 25% investment subsidy on fixed capital investment by women entrepreneurs, with a maximum limit per unit of INR 30 lakh

− Seed capital assistance to first generation entrepreneurs at 15% of the machinery cost, which will be deducted from the eligible investment subsidy

− All other incentives also hold applicable for women as per the Industrial Development Policy

ROBUST INTELLECTUAL PROPERTY (IP) SUPPORT

• The state has set up two intellectual property facilitation centers to aid startups for IP related services in various domains of science and technology. − In association with National Research Development Corporation (NRDC), the state has facilitated an Intellectual Property Facilitation Center to provide startups with facilities related to IP Services in various domains of science and technology. Services offered include:• Patent Filling• Copy Right• Trademark Registration • Technology Transfer and Commercialisation• IPR awareness programmes• Global Patent Search• Technological Information services to entrepreneurs

− In addition, the state has established Technology Innovation Service Center in Visakhapatnam in association with the United Nations (UN) World Intellectual Property Organisation (WIPO). The objective of this center is to provide startups with global access to online patent and non-patent resources, industrial property related publications and assistance in searching and retrieving technology information

COHESIVE PARTNERSHIPS TO FOSTER GROWTH OF THE STARTUP ECOSYSTEM

• State has formed strategic alliances with organisations and institutions (both private and public organisations) to support startups and provide world class facilities.

• Some of the key partners are: − Federation of Indian Chambers of Commerce and

Industry (FICCI) The agreement between the state government and FICCI is to jointly start an incubation and acceleration programmes to nurture the growth of incubator managers, innovators and technology startups

− National Research Development Center The state, in partnership with, the National Research Development Center aims to promote, develop and commercialise technologies/ know-how/ inventions/ patents/ processes emanating from various national research and development institutions/ universities

− National Association of Software and Service Companies (NASSCOM) The agreement with NASSCOM is to establish an incubator programmes in Visakhapatnam to provide incubation and funding support to warehouse startups in India

− Govin Capital of Singapore In a joint venture with Govin Capital, the state proposes to provide accelerator and incubation facility to startups at the Sunrise Incubation Center in Visakhapatnam

− Gastrotope Private Limited The agreement between the state and Gastrotope is to jointly start an acceleration programmes called Fortissimo. The main objective of the programmes is to develop a technology ecosystem for agriculture and food processing sectors


WAY FORWARD

The state needs to give importance to this pillar in order to further strengthen the startup ecosystem. The state could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below: -

SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Enhance the online implementation system• As a step towards improving the current online startup portal, the state may consider providing month-to-date (MTD) and year-to-date

(YTD) figures on the online dashboard

• Moreover, the portal currently does not have an online tracking system for the application status for registration of startups. The state is encouraged to provide functionality of tracking the status of applications.

• The state is encouraged to publish details of the partnerships with institutions and business enterprises on the startup portal.

MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Establish an online mechanism to connect with mentors • The state is encouraged to develop an online mechanism to enable startups to directly connect with mentors. The mechanism could

allow startups to select the mentor they would like to connect with and it could also allow them to send messages and meeting invites to mentors.

Promote women entrepreneurship • The state could consider establishing dedicated venture funds and seed funds for women-led startups.

• The state could consider providing incubation support to women entrepreneurs, through subsidised incubation and reservation of seats in operational incubators.

Facilitate support from various state departments • In order to provide support to startups, the state is encouraged to rope in institutional support from various departments across sectors

to strengthen the startup ecosystem.

• The support to startups could be extended through sustainable programmes organised by other state departments. Sustainable programmes include incubation, seed funding, angel and venture funding.

LONG TERM ACTIVITIES (7-12 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within seven to twelve months. Activities suggested under this category are as follows:

Establish a startup policy which has detailed guidelines for registration and to avail benefits• The state could focus on adding a detailed process of availing incentives for startups in the startup policy.

• The state could include details of registration process for startups in the startup policy.


2. SIMPLIFYING REGULATIONSSimplification of regulations considers mandatory requisites for state level approvals and clearances for registering and operating a business or startup online. In order to make compliance for startups friendly and flexible, simplifications are required in the regulatory regime. It encapsulates regulatory issues faced by registered startups which have been identified through an interactive online mechanism subject to approving action by regulatory agencies. The states are evaluated based on the support provided to startups by introducing a list of rules, regulations or Acts in the state, including amendments in the Acts and regulations with requisite details to create a conducive environment for the state’s startups.

KEY FACTS

• The state has established a single desk portal under the Department of Industries (apindustries.gov.in) for all state level approvals and clearances required for registering and operating startups across various sectors in Andhra Pradesh. The portal can be accessed through the state’s startup portal.

• An order released by the Industries and Commerce Department in 2016 states that the progress of the single desk portal is reviewed and monitored by a committee working under the chairmanship of the Chief Secretary. This committee is known as the Single Desk Bureau and it comprises of officials from respective approving departments empowered to act as a single point of contact for all approvals and clearances.

• The order also mentions special provisions and measures to simplify processes and procedures:

− Spot approvals are given in case of clearances and approvals which require only a scrutiny of basic documents. This includes registration under professional tax, registration of shops and establishments, registration of establishments deploying contractual workers

− If the approving department does not respond within the stipulated time period as mentioned in the order, the single desk bureau would step in and resolve the matter

• The state, through the Electric Mobility Policy (2018 - 2023) provides support for growth of startups in the EV sector. Some of the incentives for startups under the policy include:

− Research and Development (R&D) grant – An R&D grant of INR 500 crore to fund startups with the most innovative solutions in the mobility space

− Setting up of a Center for Advancement of Smart Mobility (CASM) - Well-funded incubators within CASM will bring in investors, banks and venture funds to finance innovative startups

• The state has devised a mechanism through which startups can self-certify with labour laws applicable in the state. The same can be availed by a startup for a period of three years from the date of commencement of business.


WAY FORWARD

The state needs to give importance to this pillar in order to further strengthen the startup ecosystem. The state could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below:


Establish an interactive Business Compliance Information System• The state is encouraged to have an interactive mechanism in place for all state level approvals and clearances required to register and

operate a startup.

• The state could add a chatbot to the main website. This would help in real time problem-solving for startups and provide customised responses instead of standardised Frequently Asked Questions (FAQs) currently available on the website.

Establish a mechanism to invite and identify regulatory issues from disruptive startups• The state could develop a grievance redressal mechanism to identify and comprehend the regulatory issues faced by startups in the

disruptive technology areas such as Artificial Intelligence, Internet of Things, Renewable energy etc.

• Additionally, the state could conduct quarterly roundtables/workshops to identify sector specific regulatory issues. This would include a two-way communication between startups, and relevant government departments aimed at direct consultation and grievance redressal.


3. EASING PUBLIC PROCUREMENTEase in public procurement simplifies criteria to ensure participation of startups in government tenders. The states are evaluated based on the support provided to startups in resolving issues related to state public procurement as norms of Earnest Money Deposit (EMD), prior experience, and prior turnover which prove to be barriers for participating startups. Easing of such norms enable startups and entrepreneurs to avail exemptions and share an equal platform with established organisations.

• Through a notification released in April 2018, the state exempts all startups from the criteria of submitting EMD to participate in public procurement tenders.

• As per an order released in July 2015, the Government of Andhra Pradesh mandates that state departments and Public Sector Undertakings to procure minimum of 20 per cent of their annual value of goods or services from startups. As a part of this initiative, the state has awarded three work orders to two unique startups.

• Startups in the electronics and IT sectors with a turnover between INR 50 lakh and INR 25 crore can submit proposals demonstrating their products/services to the state on a suo moto basis and subsequently selected startups are awarded work orders.

KEY FACTS

KEY STRENGTHS

ROBUST GRIEVANCE REDRESSAL MECHANISM TO RESOLVE PUBLIC PROCUREMENT ISSUES

• The state has developed a robust online mechanism under the department of industries to receive grievances from startups and provide resolutions on matters related to public procurement.

• Startups can raise grievances on the state’s single desk portal (apindustries.gov.in) and obtain resolution of the grievances through the same portal.

• The single desk portal can be accessed through the state’s startup portal.

• The applicant is given a tracking identification number on the single desk portal. Using this, the status of the action being taken on the submitted grievance can be tracked online.

• As per an order released by the Industries and Commerce Department in 2016, all grievances must be resolved within 30 days of their initiation by the Commissioner/Director of Industries.

• Additionally, the order states that if an applicant is aggrieved by the resolution offered to them, they have an option to apply for a review and the same would be considered by the single desk bureau and resolved within 30 days.

• The state has also set up a centralised helpline to address grievances of startups. All the helpline numbers for the same are published on the single desk portal.

KEY

STRE

NG

THS


WAY FORWARD


SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and will take relatively less time for implementation. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Relaxation in prior turnover and prior experience criteria• The state could relax the criteria for prior turnover and prior experience for startups in their public procurement policies


Appointment of an officer for the grievance redressal mechanism • The state could appoint a dedicated officer to resolve grievances related to public procurement. The officer would ensure that all

grievances submitted by startups are resolved in a time bound manner and the resolutions offered are fair

Increase participation of startups in public procurement activities• The state could award more work orders to startups which would encourage them to participate in public procurement activities

• The state could consider organising annual events where startups can demonstrate their capabilities directly to the government and subsequently take part in public procurement activities

Work orders and preference in public procurement• The state could increase the range of sectors that receive work orders and preference in public procurement. The state could focus on

startups working in disruptive technology areas such as Artificial Intelligence, Augmented Reality, Renewable Energy etc.


The state, in association with NASSCOM and the central government has started the ‘Center of Excellence for Internet of Things’ (CoE for IoT) at the Visakhapatnam Sunrise Incubation Hub. The main objective of this programmes is to foster growth of the IoT ecosystem in India.The state has supported 70+ startups by providing them with subsidised incubation in the form of free co-working space and other incubation services. Various operational incubators have also allotted seats to startups. As on date, 250+ seats have been allocated to startups under three incubators.

KEY FACTS

4. INCUBATION SUPPORTIncubation support is an integral element of the startup ecosystem that supports entrepreneurs to grow their businesses and assists new startups to succeed. In order to promote startups, the state governments collaborate with organisations, corporates or industry associates to establish incubators, to support startups in the form of capital expenditure or operational expenditure. The evaluation is based on setting up of incubators supported by the state governments to release funds to the startups, thereby creating a unique mechanism to provide subsidised incubation and operate acceleration programmes in partnership with the industry.

KEY STRENGTHS

COMPREHENSIVE MECHANISM TO PROVIDE INCUBATION SUPPORT

The state government through an order released in February 2019 created the Andhra Pradesh Innovation Society (APIS) with a vision to promote entrepreneurship in the state. Further, the state had allocated an amount of INR 23 crore towards the functioning of planned activities of the society. The funds were allocated towards the following activities:• International events like international innovation fair,

startup product launches, keynotes, startup awards.• Domestic national level events like investor pitches, demo

days conducted in association with industry bodies like NASSCOM, FICCI, Confederation of Indian Industry (CII), The Indus Entrepreneurs (TiE).

• Infrastructure creation at Tirupati for startups at the Information Technology Business Center (ITBC).

• Maintenance of innovation centers in Tirupati, Visakhapatnam, Kakinada, Vijayawada.

Key measures envisioned by the state under the startup policy to support incubation are:• The state has proposed to develop a fund to provide

grants for constructing incubation infrastructure such as Research and Development laboratories, office spaces, conference rooms, residential facilities.

• The state proposes to partner with Indian and globally successful incubators in order to replicate successful funding and mentoring models.

• The state intends to partner with accelerators by providing support and space to bring in expertise in operating and managing incubation centers.

• The state proposes to establish pilot incubators on Public Private Partnership mode. The pilot incubators would be set up for a period of five years and would be eligible for a monthly assistance of INR 12,500 for a maximum period of three years.

• The state has also set up a centralised helpline to address grievances of startups. All the helpline numbers for the same are published on the single desk portal.

KEY

STRE

NG

THS

The state has developed five business incubators:

Visakhapatnam Sunrise Incubation Hub

Tirupati IT Incubation Center

Kakinada Incubation Center

Anantapur Incubation Center

Tadepalli Incubation Center


WAY FORWARD



Increased partnerships to strengthen incubation support• The state could identify additional educational institutes for setting up new incubators and offer financial support to meet the capital

and operating expenditure incurred to set up and run incubation facilities.

• Additionally, the state could partner with private incubators and assist them in developing incubation facilities.

Provide additional incubation subsidies and increased seat allocations in private incubators• The state is encouraged to allot grants to startups that complement funds/grants by corporates, academic institutions and the central

government.

• The Government of Andhra Pradesh could publish the list of startups that have availed seats in state supported incubators on the state’s startup portal.

STRONG SUPPORT FOR ACCELERATION PROGRAMMES

• The state has actively supported acceleration programmes in association with industries and educational institutions.

• The Fortissimo Acceleration Programmes, which is a joint venture between the state and Gastrotope Private Limited, aims to develop the technology ecosystem of Agriculture and Food Processing sectors.

• Startup Accelerator India was established at the Sunrise incubation facility in Visakhapatnam by the state in association with Govin Capital Private Limited. The main objective of the programmes is to offer training and development support to entrepreneurs.

• In addition, the state has established a business accelerator in Tirupati in association with FICCI & the IC2 Institute at The University of Texas, Austin.

• The primary objective of the state accelerators is to foster a culture of innovation in the state. Key goals of the accelerator are as follows:

− Identify disruptive technologies in India that address unstructured societal challenges.

− Educate university students regarding the finer points of innovation and entrepreneurship, and how to launch a successful technology business venture.

− Establish a world-class incubation model in the state of Andhra Pradesh.

KEY

STRE

NG

THS


5. SEED FUNDING SUPPORTSeed funding can be in the form of a direct grant, subsidised loan, product development and marketing financial assistance, monthly sustenance allowance or even equity seed funding. With seed funding, the evaluation is based on the states’ endeavour to help a business grow and generate its own capital by establishing a guideline document. The states need to ensure that startups scale with the right velocity in order to achieve leading positions, through state investment and startup’s entrepreneurial knowledge.

The state has prioritised provision of seed funding to startups in the region. The startup online portal provides startups with a mechanism to avail seed funding benefits. The portal also lists the guidelines for startups to apply for seed funding.

KEY FACTS

KEY STRENGTHS

ROBUST MECHANISM FOR PROVISION OF SEED FUNDING

• The state has formulated seed funding guidelines on their startup portal to provide support to early-stage startups.

• The scheme aims to support startups who come up with innovative products, processes or services, or have a scalable business model.

• The guidelines explicitly state the eligibility criteria, extent of seed funding applicable and application procedure, including evaluation criteria and details of the selection process.

• Startups graduated from state owned or state recognised incubators and accelerators are eligible to apply for the seed fund support.

• As per this scheme, a one-time grant of upto INR 5 lakh per startup can be provided to the selected entities as seed fund, with the total budget for the scheme not exceeding INR 2 crore per financial year. The seed fund may also be given as reimbursement for any professional/ technical/ infrastructural/ marketing costs incurred by the startup.

• The startup portal allows startups to submit their applications, track the status and receive approvals.

KEY

STRE

NG

THS


WAY FORWARD



Create increased awareness about seed funding• The state is encouraged to generate awareness among incubators to utilise the incentives of seed funding. This would lead to more

startups availing seed funding from the state supported funds.

• After the seed funding is provided to startups, there could be a mechanism to follow-up on the progress made by the enterprise (except for the startups that have commercialised). This can be in the form of timely feedback mechanisms and follow-up reports. This would enable the state in outlining the success stories of seed funding and subsequently identify ways to improve the process for seed funding.

Dedicated annual events to facilitate seed funding• The state could consider conducting dedicated annual events for provision of seed funding to early stage startups. The events would

be a good platform for startups to interact with seed funds and demonstrate their products/services.

Implement alternate models for provision of seed funding• The state could consider other models for seed funding such as subsidising interest payments on loans obtained from

commercial banks.

• The state could also provide monthly sustenance allowance to startups to cover their operating expenses.


WAY FORWARD



Promote venture funds• In order to increase the number of startups availing investments from state supported venture funds, the state could consider deploying

certain measures such as offering a success fee at a fixed rate to startups.

• The state could organise events in order to create more awareness about venture funding mechanisms available to startups.

• The state could initiate the creation of a detailed list highlighting the state’s support to startups and venture funds, which can be accessed from the startup portal. By making the state’s initiatives available in the public domain, entrepreneurs and startups may be aware of the funding support provided by state governments and therefore avail such services.

• The state has not published a fund wise list of unique startups or fund of funds supported by the state. Going forward, it could be beneficial for the state to publish it. The publication of such a list ensures that startups are aware of the support provided by the state. The knowledge and awareness transmitted by such publications creates a more transparent and inclusive startup ecosystem in the state, fostering confidence and growth.

Startups funded from venture funds• The state needs to establish more venture funds to support startups through the following measures:

− Establishing clear operating guidelines for venture funds

− Appoint fund managers for such funds and sign a memorandum of understanding

− Approach independent venture funds for participation

6. VENTURE FUNDING SUPPORTVenture capital funding support is provided to the startups from state supported funds. The states are evaluated based on the establishment of the Fund of Funds (FoF) with approved operating guidelines and signing a memorandum of understanding (MoU) with the fund manager along with a concrete budget allocation. Venture funding provides strong growth potential to startups wherein the fund is used for the all-round development of startups and to levitate the startup ecosystem of the states.

In its startup policy, the state has proposed to create an Initial Innovation Fund (IIF) of INR 100 crore for entrepreneurs. • The fund will be in the nature of Fund of Funds. It would not invest directly into start-up companies.• The fund would participate in the capital of Securities and Exchange Board of India (SEBI) approved venture capital funds,

up to 15% as limited partner. The Venture Capital Fund in turn would be free to invest in startups located in Andhra Pradesh, based on its own criteria.

• The fund would be professionally managed like a Private Equity/Venture Capital Fund with industry leaders on the investment committee and would also leverage support from private partners and Government of India.

• The fund would also support establishment of pilot incubators and Human Capital Developmental Programmes through host institutes approved by the National Science and Technology Entrepreneurship Development Board.

KEY FACTS


7. AWARENESS AND OUTREACHIt is the endeavour of state governments to raise awareness about the Indian startup ecosystem and increase its outreach throughout the state. The states are evaluated based on awareness of startups created through workshops, national and international events including bootcamps and hackathons/ grand challenges. In order to promote startups, the state encourages participatory and inclusive processes for linking startups with angel investors and high net worth individuals. Maximum participation is encouraged for exchange of valuable knowledge amongst startups, and pitching sessions for angel investments with widespread propagation.

KEY FACTS

KEY STRENGTHS

FOSTERING ENTREPRENEURSHIP THROUGH BOOTCAMPS AND NATIONAL/ INTERNATIONAL EVENTS

The state in collaboration with iB Hubs conducted 10+ bootcamps spread across nine districts to assist young innovators in the state. This initiative is called the “I- Boot” • The programmes witnessed participation from more than

1200 students and enabled them to gain insights about the application of Internet of Things (IoT) in multiple sectors such as smart cities, agriculture, retail, transportation, etc.

Key statistics of the hackathons are as follows:

225 participants

350+ attendees

3.8 million outreach

13 Winners

822 applications

700+ institutions covered

The state organised a two-nation hackathon involving India and Israel, under the title Sunrise Open Challenge Hackathon (SOCH).• The hackathons were conducted in Tel Aviv and Visakhapatnam and were conducted in association with DCF Ventures

and Axis Innovation.• These two-nation hackathons were focused on finding solutions to the problems faced by Water Supply, Agriculture and

Cyber-Security departments.

• The hackathons witnessed participation from multiple industry mentors including Google, NASSCOM and Holosuit.• The total prize money was USD 65,000 for winners from India and Israel.

The state organised one angel investment workshop, under the name “Arise”, in Visakhapatnam.• The angel investment workshop was highly interactive and witnessed active participation from early-stage investors

across sectors and stages .• Overall, the event had participation from nine investors, 30+ mentors & 60+ startups.• Some of the investors who were part of these workshops are given below:

− Lead Angels − IAN − Alcove Partners − Ilovemondays − Unitus

− Equanamity − New logistics ventures − Jubilant foods − Anthil Ventures


Location Number of Participants

1 Tadepalle, Guntur District 100

2 Vizianagaram, Vizianagaram District 122

3 Visakhapatnam, Visakhapatnam District 115

4 Nuzvid, Krishna District 100

5 Visakhapatnam, Visakhapatnam District 115

6 Surampalem, East Godavari District 109

7 Tekkali, Srikakulam District 108

8 Bhimavaram, West Godavari District 126

9 Rajam, Srikakulam District 118

10 Kavali, Nellore District 115

11 Rajahmundry, East Godavari District 129

The state conducted five national and international events:

• Tech Sparks, 2018 in Bengaluru:Tech Sparks was a technology conference cum exhibition organised by YourStory in association with APIS. YourStory is an Indian platform for stories, resources and research reports related to startups and entrepreneurs. The event attracted entrepreneurs, investors, and policymakers from multiple states in India. Furthermore, the participants met the top 30 technology entrepreneurs of the year as mentioned in the “TECH30” ranking list published by YourStory. Five startups from Andhra Pradesh demonstrated their products at this event.

• Slush, 2018 in FinlandSlush is the annual flagship technology conference of Finland, which attracts thousands of innovators, enterprises, venture capitalists, policymakers and journalists from around the world. As a supporting partner to the conference, the embassy of India in Helsinki in coordination with the Department for Promotion of Industry and Internal Trade (DPIIT) selected thirty Indian startups to participate in the conference. Ten out of the thirty Indian startups were from Andhra Pradesh.

• The Indus Entrepreneurs (TiE) Global, 2018 in New DelhiThe annual global conference of TiE Global in 2018 brought together 2,500+ delegates from across the world which included entrepreneurs, industry experts, investors, students, academicians and policymakers for a cross-functional and cross-border transfer of knowledge and experiences. APIS was one of the partners for the conference.

• Latitude 59, 2019 in EstoniaLatitude was a conference for startups held in Estonia. The main objective of the event was to enable startups to meet angel investors and venture capital funds. Three startups from Andhra Pradesh demonstrated their products at this event.

• Smart Cities Expo, 2019 in New DelhiThe main objective of the event was to enable startups to demonstrate solutions/offerings in the areas of Smart City development, Intelligent Buildings, Energy, Transportation and Water Management. Five startups from Andhra Pradesh participated at this event.

• The details of the bootcamps are indicated below:

KEY

STRE

NG

THS


WAY FORWARD


SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and will take relatively less time for implementation. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are:

Organise additional angel investment workshops• State is encouraged to conduct additional angel investment workshops, across various districts in Andhra Pradesh, to provide a

platform for startups to showcase their ideas or products and an opportunity to connect with angel investors and venture capitalists.

• Additionally, the state is encouraged to ensure participation of a higher number of investors across different sectors.

Organise additional national and international events• The state is encouraged to conduct additional national and international events, knowledge exchange and seminars for increased

exposure, knowledge & resource exchange and market access for startups.

• Students or aspiring entrepreneurs require basic understanding of ideation, business planning, finance, legal and pitching before they venture out to run a startup. Going forward, the state may conduct such trainings and events in more educational institutes of the state to ensure coverage of all districts.

• The state could support startups in participation of national and international events. The support can be in the form of grants, travel reimbursement, registration, or sponsorship to allow startups to participate in such events.

CONTACT US

www.startupindia.gov.in

[email protected]

1800-115-565

ANDHRA PRADESH - Startup India · Andhra Pradesh has been evaluated on 7 distinct pillars which...

Documents

Transcript of ANDHRA PRADESH - Startup India · Andhra Pradesh has been evaluated on 7 distinct pillars which...