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South India Dominates: 45% of India’s startup incubators are located in South India, with Chennai and Bengaluru leading the chart.
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Incubator Density Concerns: India’s incubator density is 0.8 per million population, significantly lower than the US, UK, and China.
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Incubation Benefits: Incubated startups show higher funding success (27.1%) and revenue growth (Rs 1,590 crore annually).
A recent study by IIM Bangalore and IIT Madras reveals that South India is home to 45% of India’s over 1,100 active startup incubators. The region’s academic institutions, such as Chennai’s IIT Madras, and industry hubs like Bengaluru, contribute to this dominance.
The study, “India Incubator Kaleidoscope 2024,” highlights concerns regarding India’s incubator density, which lags behind global leaders. However, it also showcases the benefits of incubation, particularly for deep-tech sectors like AI/ML and biotech. Incubated startups demonstrate higher success rates in securing funding (27.1% within one year) and generating revenue (Rs 1,590 crore annually).
The report emphasizes the crucial role incubators play in promoting entrepreneurship and inclusivity. IIM Bangalore’s Professor Srivardhini Jha noted, “Incubators make entrepreneurship more accessible, but their impact is not well understood. This report highlights the need to enhance incubation efforts nationwide.”
Key findings include:
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98% of incubated startups are supported by just 10% of incubators
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Incubation is sought by students, young professionals, women founders, and those with modest financial resources
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Deep-tech sectors show high incubation rates (12%)
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Annual average revenue for incubated startups is Rs 1,590 crore
The study provides valuable insights into India’s startup ecosystem, underscoring the importance of incubators in fostering entrepreneurship and innovation.
