Business Incubators in

India
Anshul Saxena
CINE

What are Business Incubators

Incubation is a dynamic process of business

development.
Incubators nurture young firms, helping them to
survive in their early stage.
Incubators provide:

Infrastructural support i.e. office space, meeting room

Platform to do networking
Management assistance
Other support services, specific to incubators

Source: http://www.1000ventures.com/presentations/business_incubators.html

Benefits of Incubation

For Tenant Companies

For Corporate World

The new technology / product gets developed

Informed investment choice
Possibilities for takeover

For Govt.

Economic development
Social benefits
Encouragement to innovate

Model

Linear Model of Innovation:

Since Universities receive Govt. grant, so ideas

of current national interest incubated
Apart from R&D support, managerial support
also required to develop business

Origin of all innovation lies in Research activities

Role of universities

Commercial feasibility to the ideas

Networks in suitable places can prove handy

Indian Scenario

Incubation at nascent stage

Mostly in a college / university, e.g.
TREC STEP (NIT, Trichy)
Society for innovation and entrepreneurship (IIT B)
Nirma Labs
Technology Business Incubators IITD
TBI@KEC (Kongu Engg. college, TN)
These incubators provide technological support
STPI (Software technology parks)
CIIE, IIMA

Example

Main Activities of SINE are to:

Incubate early stage entrepreneurial ventures based

on technology and innovation.
Create physical infrastructure and support systems
necessary for business incubation activities.
Facilitate networking with professional resources,
which include mentors, experts, consultants and
advisors for the incubatee companies.
Identify technologies/innovations which have potential
for commercial ventures.
Promote and foster the spirit of entrepreneurship.
Carry out activities that facilitate knowledge creation,
innovation and entrepreneurship activities.

STP

Remarkable Govt. initiative

Special incubator in software sector
Objectives of STPs are

To establish and manage infrastructure resources i.e.

Data communication facilities, core computer facilities
To promote development and export of software
services
Fast clearance (single window) for statutory services
To train professionals

Currently in about 34 cities across India

Taking examples from Europe

Extensive network of incubators

Incubators in or near by famous universities

Some expertise to offer

Provides technical and R&D support

Management
Technological
Networks

In fact, Incubators position themselves

according to the additional expertise they offer

Platform to pitch to VCs and PE funds

Network among Incubators

Help in preparing pitches

Incubators have some VCs as either stakeholders or
Board members
Incubators develop good track record and rapport with
certain VCs
Incubators develop network among themselves
Help them in utilizing networks with VCs and other
research firms

Some examples: Manchester Business school

incubator, IT univ. of copenhagen, London
science park etc.

Govt. assistance

UK trade and investment (UKTI), an arm ok UK

foreign ministry works with incubators
Organizes programs wherein motivates young
companies to be part of these incubators
Also invites foreign startups
Provides Legal and other statutory services to
incubators

The way ahead

Govt. initiatives to develop incubators

Public-Private partnerships
Some benefits and sops to develop and manage
incubators
The return in this business (incubators) come after a gap
of time, Govt. needs to fill this gap in PPP

Indian incubators have to think beyond R&D

assistance
Networks with VCs and other firms also required

Incubators can be segmented according to the

ideas they incubate.
Infrastructure

Taking one step forward

Good infrastructure: a hygiene factor to companies

Thank You !!