Incubators ISBA 2012: Building India's Entrepreneurship Pipeline

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Building India’s Entrepreneurship Pipeline Sramana Mitra Founder, One Million by One Million 1M Entrepreneurs x $1M+ Revenue by 2020 http://1Mby1M.com

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Sramana Mitra's ISBA 2012 talk

Transcript of Incubators ISBA 2012: Building India's Entrepreneurship Pipeline

Page 1: Incubators ISBA 2012: Building India's Entrepreneurship Pipeline

Building India’s Entrepreneurship

PipelineSramana Mitra

Founder, One Million by One Million1M Entrepreneurs x $1M+ Revenue by 2020

http://1Mby1M.com

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Entrepreneurship is a Darwinian Numbers Game

High Infant Entrepreneur Mortality600,000 companies go out of business every year in the US

But, 600,000 business startup every year as well

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99% of Entrepreneurs who seek Financing get

rejectedYes, even in Silicon Valley

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Why?Not enough Validation

Not enough TAMInadequate TeamPoor Positioning

etc.

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But, Silicon Valley has a HUGE Pipeline

US too. 600,000 businesses starting up each year.Even with 10% failure, enough succeed.

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How does India get there?

And soon.

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With Virtual + Physical Incubation

By democratizing entrepreneurship education

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1M/1M: Virtual Incubator

We partner with physical incubators

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1M/1M Core Focus on Scalable, Effective Mentoring

Mentoring = (Curriculum + Strategy Consulting)

Gap in most communitiesMentoring Networks Do Not Work

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Silicon Valley Methodology and Insider Network

1M/1M offers all local incubators instant and credible access to the Valley

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Methodology, Curriculum, Mentoring, Consulting,

Biz Dev, Financing, Media Access

1M/1M augments local organization’s offerings

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Supplement, not Competition

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Step 1: Virtual Pre-Incubation

100% of the entrepreneurs get basic training and support

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20122012 20132013 20142014 20152015 20162016PhysicaPhysica

llIncubatIncubatorsors

20 50 100 200 250

EntrepreneEntrepreneursursperper

IncubatorIncubator

100 200 250 300 400

PipelinPipelinee

2000 10,000 25,000 60,000 100,000

CostCost($1000 / ($1000 / yr / yr /

member)member)

$2M $10M $25M $60M $100M

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Step II: Identify the 4% Most Promising

OnesOffer them $25k grants

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20122012 20132013 20142014 20152015 20162016PhysicaPhysica

llIncubatIncubatorsors

20 50 100 200 250

EntrepreneEntrepreneursursper per

IncubatorIncubator

100 200 250 300 400

PipelinPipelinee

2000 10,000 25,000 60,000 100,000

Grants Grants (4%, (4%, $25k)$25k)

80 400 1000 2400 4,000

CostCost $2M $10M $25M $60M $100M

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1% Get Financing89% Bootstrap To Profitability

10% Fail4-years to get to $1M Avg Revenue

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20122012 20132013 20142014 20152015 20162016

PipelinPipelinee

2000 10,000 25,000 60,000 100,000

Success: Success: 90%90% 1800 9000 22,500 54,000 90,000

GDP GDP ($1M ($1M Avg in Avg in

4 4 years)years)

$1.8Bin 2016

$9Bin 2017

$22.5Bin 2018

$54Bin 2019

$90Bin 2020

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20122012 20132013 20142014 20152015 20162016

GDP GDP ($1M ($1M Avg in Avg in

4 4 years)years)

$1.8Bin 2016

$9Bin 2017

$22.5Bin 2018

$54Bin 2019

$90Bin 2020

CostCost $4M $20M $50M $120M $200M

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ROI: 450X in 4 years

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India can afford a $300M

experimentWith 450x ROI potential

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Physical Incubator:Computer

1M/1M: High Performance Chip

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Physical Incubator:Smartphone1M/1M: App

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Plug 1M/1M Onto Your Incubator

Sramana MitraFounder, One Million by One Million

1M Entrepreneurs x $1M+ Revenue by 2020http://1Mby1M.com

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Skype Irina_Patterson