India is an Entrepreneurship Model for the World - Global Tech Mogul
Tech Mogul John Chambers, owner, and CEO of JC2 Ventures reminded that cashing out early is not an ‘Indian trend.’ While he was heading Cisco Systems, he had acquired 180 firms. In an email interview with Shelley Singh, Chambers takes a close look at startups, in India as well as abroad, and the issues startup founders have to endure.
60 to 70% of start-ups, regardless of where they are on the globe have an exit strategy of being obtained by another company (that is, cashing out early), or by an exclusive equity firm that takes the company to a different degree. That being said, the giants or tech titans are usually those that swallow smaller startups.
“As the startup market in India becomes more robust and the business-to-business market continues to develop, I think you will see this change.” said Chambers
To build on that, a huge vehicle driver of this ‘cash out’ ideology is probably the reason founders feel that going public is not attainable. Among many other issues, they are battling to scale, can not obtain access to the funding they need, do not have job seekers with the ideal skills since modern technology is dynamically expanding, etc.
Yet, Chambers and others like him genuinely believe startups and also micro multinationals will be the vehicle drivers of growth and also advancement in the digital age.
“I forecast that 40% of those large players won’t even exist ten years from now,” remarked Chambers.
IPOs and Indian Startups
India’s startup scene is still fairly new when compared to the global scene. The nation only just recently began ramping up its resources on startups. A positive theme here includes the steps taken by the Modi Government to implement helpful laws and reasonable tax deduction plans. Even though that is the case, a solitary startup generally takes 7 to 10 years before it is truly placed to grow headcount and even think of choosing an initial public offering (IPO).
In general, the biggest challenge for startups is scaling. If you consider the US, fewer start-ups are going public than before. And in Western Europe, there are only a handful of enterprises, even with its laser-focused efforts to promote as well as urge entrepreneurship.
“Start-ups will certainly drive job development as well as financial growth in the future. I’m doing this at JC2 Ventures, assisting start-ups to expand and scale and I strongly think India is ending up being a model for the remainder of the globe.” Chambers said.