This week on Startup Street, one of India's most active state startup programmes has been recognised as the best in the world. A look at why Kerala's startups are thriving. India continues to reinforce its position as the third-largest startup ecosystem. And a U.K. drugmaker eyes opportunities in China.
Here's what went on...
Kerala Startup Mission Ranked The Top Public Business Accelerator
The Kerala Startup Mission, a state government initiative, has been recognised as the world's top public business accelerator.
UBI Global, a Stockholm-based intelligence company, awarded the position to KSUM in the World Rankings Report 19/20. Other contenders include Belgium, Spain, Russia and Ireland. The award ceremony was held at World Incubation Summit for Best Programmes in Doha, Qatar on Nov. 8.
KSUM not only provides funding through early stage and seed loans, but also through external investments and opportunities, Chief Executive Officer Saji Gopinath said in the Kerala Startup Ecosystem Report 2019. Though KSUM is not the only accelerator in the state, it runs several innovation and entrepreneurship development centres that guide 10,000 aspiring entrepreneurs across 230 technical colleges.
Kerala, according to the ecosystem report, is home to 2,200 startups as of September with 230 innovation and entrepreneurship development cells, over 35 incubators and more than five accelerators.
Firmly positioning #KSUM in the #startup map of the world, @ubiglobal, a Stockholm-based company, known for high-quality intelligence, assessment, and mapping of business incubation, has ranked the state as 'World #1 - Public Business Accelerator'. #WIS19 #UBIAwards @anilarch pic.twitter.com/bGlJchWOHZ
According to the Kerala Startup Ecosystem report, 130 startups from the state have gone global under various government schemes. The state has earmarked Rs 1,000 crore worth of investments for startups over the next four years. In January alone, KSUM launched the Integrated Startup Complex in Kochi spread over 1.80 lakh square feet with facilities for various tech sectors.
“Kerala accounts for only 2.8 percent of India's population, but its economy contributes nearly 4 percent to the Indian economy, making the state's per capita income 60 percent higher than India's average,” M Sivasankaran, secretary of Electronics and IT, said in the report.
This comes at a time Prime Minister Narendra Modi has set a target of achieving a $5-trillion economy by 2024-25. And new entrepreneurs and startups have a crucial role in doubling the size of the economy, he had said on several occasions.
KPMG, in a report titled “Fintech and Startups Fuelling India's $5-Trillion Economy”, said despite a slowdown in India, startups are emerging and playing a crucial role of not only sustaining but also giving growth impetus to the overall economy. “There has been no dearth of capital flowing in the startup economy, with $7.67 billion flowing in just three quarters of 2019. There were 21 investments that crossed the $100-million mark.”
Also, the “golden triangle” of government, private sector and academia, according to the report, are important players who can provide the impetus needed to grow the startup ecosystem. Much like that seen in Kerala.
India Adds Over 1,100 Startups In 2019
India has continued to reinforce its position as the third-largest startup ecosystem by adding more than 1,100 technology startups so far this year.
The total number of tech startups has risen to 8,900-9,300 in the last five years, industry body Nasscom said.
“From 2014-2025 the 10 year period that we will see, the Indian startup ecosystem is geared up for 10x growth trajectory over these 10 years, which is pretty phenomenal,” Nasscom President Debjani Ghosh said. “We are expecting by 2025 the total number of unicorns to go up anywhere between 95 and 105 in India.”
Nasscom expects the cumulative valuation of the startup ecosystem to go up to $350-390 billion by 2025 from $10-20 billion in 2014.
“Net-net it is a very positive story, not just the third-largest startup base, but we have seen a very healthy growth across each and every parameter that defines the startup ecosystem.”
AstraZeneca Looks To Fund Biotech Startups
AstraZeneca Plc is tying up with one of China's largest investment banks on a $1-billion fund to invest in biotechnology startups.
The U.K.-based drugmaker will work with China International Capital Corp. to target support for drug and diagnostics developers along with other startups using artificial intelligence and digital technologies to improve health care, Chief Executive Officer Pascal Soriot said in an interview to BloombergTV.
The pharma company has been assembling collaborations throughout the health system in China, accounting for almost a fifth of the company's sales. AstraZeneca is now taking steps to establish centers for drug research and artificial intelligence innovation in Shanghai, along with an import platform to help commercialise drugs for rival companies.
“We have to invest more in China,” the CEO said on the sidelines of the China International Import Expo in Shanghai. “The needs are enormous — 1.4 billion people who until recently didn't have access to modern medicines.”
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