The Indian startup ecosystem has been growing at an unprecedented pace and with it, so has the number of entrepreneurs seeking funding. There are many reasons why startups use crowdfunding platforms instead of other sources, such as banks or venture capitalists. One reason is that many people find it more appealing than taking out loans from banks which can have strict repayment schedules and interest rates that are often unaffordable for young businesses with uncertain futures.
Why do many startups prefer crowdfunding?
Before answering the question about the entrepreneurs’ growing attraction towards crowdfunding, it is important to know what exactly crowdfunding is.
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. This can be achieved through internet platforms, where anyone can offer financial support for creative projects or business ventures.
Crowdfunding is a way to raise funds for a project by getting many people to contribute small amounts of money.
How crowdfunding platforms make money?
Crowdfunding is an online funding platform that provides a new way for startups to raise money. Crowdfunding platforms are a new way to raise money for a project or idea. The idea is that if you have an idea, you can post it on the crowdfunding platform, and people can pledge money to make it happen. Crowdfunding platforms make money by taking a percentage of the pledges made on the platform.
There are some crowdfunding platforms that are free. Others charge a commission fee that is charged for using their platforms. Some crowdfunding platforms also take a percentage of the funds raised for the project.
Crowdfunding platform in India for business
Crowdfunding platforms in India are proliferating and are becoming an important source of funding for startups. These platforms offer an alternative to traditional funding sources such as banks and venture capitalists, which can be expensive for startups.
In India, people increasingly use crowdfunding platforms to raise funds for their startup ideas. The Indian government has taken a keen interest in the crowdfunding industry and has been working on making it more accessible for startups and SMEs.
Alternative viable funding sources- Accelerators & Incubators
In the last decade, there has been a huge increase in the number of accelerators and incubators worldwide.
One of the reasons for this is that they offer a shortcut to startup success.
Another reason is that they provide many benefits for both sides: entrepreneurs access mentors and investors while accelerators access new ideas and innovative technologies.
Accelerators and incubators are organizations that provide startups with resources and guidance. They typically offer office space, mentorship, funding, and other services. Entrepreneurship is a risky endeavor requiring the right skills to succeed. Accelerators and incubators provide the necessary support for these entrepreneurs to produce better results than they would have on their own.
Some organizations provide this support through a physical location where entrepreneurs can work or by providing mentors with an online platform to connect with them. These accelerators and incubators are often associated with universities or government agencies because they need to be recognized to succeed in their endeavor.
Accelerators and incubators are also the entities that help startups by providing them with mentorship, networking opportunities, and funding.
The difference between an accelerator and an incubator is that an accelerator is a business environment where entrepreneurs can get help launching their new startup. It is usually a physical space with office spaces, meeting rooms, and other resources.
An incubator is a business environment where entrepreneurs can get help in launching their new startup. It is usually a physical space with office spaces, meeting rooms, and other resources.
The difference between the two lies in the time frame of the programs. Accelerators are short-term programs that last for 3 months or less, while incubators are long-term programs that last for 12 months or more.
There are many different accelerators and incubators, but they all have one thing in common: they make it easier for startups to get their product out into the world.
Let’s take a look at the top 10 accelerators and incubators in India.
Top 10 accelerators in India
|No. of Exits
|Accelerator duration (weeks)
|G. Venugopal, S. Gopalkrishnan, S.D. Shibulal, Shrinath Batni, Tarun Khanna
|9unicorns Accelerator Fund
|Anil Jain, Apoorva R Sharma, Gaurav Jain, Anuj Golecha
|Finance, Financial Services, Venture Capital
|Abhay Chawla, Ashish Bhatia, Mona Singh
|Coworking, Communities, Incubators
|Finance, Consulting, Venture capital
|Financial Services, Venture, Capital
|Techstars Bangalore Accelerators
|Business Development, Venture Capital, Financial Services
|Vikram Upadhyay, Anurag Kapoor
|Green Building, Angel Investment Venture Capital
|Amitava Neogi, Ravi Veeraghanta,Rohinton Bharucha, Sudarshan Narayan, Uday Deshpande
|Devesh Rakhecha, Dharamveer Chauhan, Lalit Mangal, Nitin Sethi, Raunak Singhvi, Sushil Sharma
|EdTech, FinTech, Communities, B2C
|Pradeep K Jaisingh
Top 10 incubators in India
|No. of Investments
|No. of Exits
|Funding Platform, Incubators, Education, Venture Capital
|Nandini Hirianniah, Sameer Guglani
|Dr. Lakshmi Jagannathan
|Guhesh Ramanathan,Vivek Kumar
|Venture Capital, Incubators
|Incubate Fund India
|Financial Services, Venture capital, Consulting
|Arjun Madhavan, Vidur Marwah, Pranav Marwah
|Financial Services, Business Development, Venture Capital
|Rakesh Bhatia, Ishaan Khosla
Conclusions and takeaways:
There are many accelerators and incubators in the market that are available for startups. But it is important to take into account a few factors before choosing one.
All the programs mentioned above are different and required distinctive programs for success in the venture. These programs are highly competitive and intake selected businesses per batch. These accelerators and incubators in India will help you to manifest your business ideas and will be helpful to take your business to new pinnacles.
The first factor to consider is what your company’s goals are. The second thing to consider is what type of support does the accelerator or incubator provide? And lastly, you should look at the geographical location of the accelerator or incubator.
You should also keep in mind that entrepreneurship is challenging and requires appropriate support and guidance.
After considering all permutations and combinations, the accelerator or incubator you choose should be the one that can help you achieve your company’s goals.