Unlocking the Data Within Indian Software Product Startups

Unlocking the data within INDIAN SOFTWARE PRODUCT STARTUPS India has the potential to build a USD 100 Billion software product industry by 2025. India has a critical mass of software product companies that have entered their maturation stage. At this juncture, to sunstain momentum it's very important for the entire ecosystem - product entrepreneurs, angels. VCs, government to be aligned. And this alignment will come about when everybody is looking at the industry issues through the lens of credible industry data. Since this data isn't available iSpirt embarked on a systematic research ef fort in partnership with Prof. Sharique Hasan of Stanford University to address this problem. The first Product Industry Monitor report is a result of this effort. Following are some key findings of this report. An ISPIRT Report WHAT DO PRODUCT STARTUPS CREATE? The most common product sectors that Indian startups work in are: Top 3 sectors: Other sectors: 34% ENTERPRISE 9% 3% 3% 3% 3% MOBILE INFRA- SECURITY E-COMMERCE HEALTHCARE STRUCTURE 26% SAAS aillh 2% 2% 2% 2% 1% MEDIA BIG ANALYTICS EDUCATION AGRICULTURE 12% CONSUMER DATA ADVERTISING WHERE ARE THESE PRODUCT STARTUPS LOCATED? 6% of product startups have SECONDARY HEADQUARTERS in US or Europe. 94% of product startups have 1 HEADQUARTER. 12% • NCR •21% MUMBAI PUNE HYDERABAD 89% of product startups in India are primarily spread across only in 6 cities. 34%. BANGALORE 8% CHENNAI Rest 5% of product startups have of fices in other parts of India. 3% have in North American and the remaining 2% have their offices in Europe. WHATS THE PROFILE OF THE FOUNDERS? 40% of product startups have 2 founders, followed by 1 and 3 person fouding teams. 40% 24% 22% 9% 5% of product startups have 2 founders. of product startups have 1 founder. of product startups have 3 founders. of product startups have 4 founders.. of product startups have 4+ founders. Founders are older. 71% of them are in their 30's and 40's. 43% of founders are in their 30's. 28% 23% of founders are of founders are in their 40's. in their 20's. Not too many 6% of founders are dorm room product startupsl in their 50's. (21 21-30 31-40 41-50 50+ Years Years Years Years Years O 95% of founders have prior work O Founders are well educated with experience. graduate and post graduate degrees. WORKED IN MULTINATIONALS 38% r WORKED IN DOMESTIC STARTUPS 29% WORKED IN OVERSEAS STARTUPS 15% 43% 22% 01% 13% WORKED IN LARGE DOMESTIC B.E. or B.TECH 22% MASTERS DOCTORAL 12% MBA B.SC or B.A. 5% of founders have no prior work experience 78% of product startups have homogeneous founding partners. O In 50% of product startups founders have equal share of ownership. EQUAL OWNERSHIP EQUAL OWNERSHIP EQUAL OWNERSHIP EQUAL OWNERSHIP EQUAL OWNERSHIP 22% DIVERSE SKILLS 78% HOMOGENOUS SKILLS WHO IS FUNDING THESE PRODUCT STARTUPS? The primary source of funding for the majority of product startups is the founder's own capital. $$$$$$$$$$$$$$$ $$$ $ $ 73% 14.1% 3% 2.5% BOOTSTRAPPED Angel Venture Debt 57% 4 A majority of product startups have less than 1 crore invested. 23% 17% 3% > INR 1 Crore INR 1-5 Crore INR 5-12 Crore < INR 12 Crore WHATS THE VALUATION OF THESE PRODUCT STARTUPS? Only 27% of the product startups have been valuated out of which: 50% 34% NO DATA of startups have a valuation betweeh 1 and 10 million USD of startups have a valuation of less than 1 million USD TALENT THAT PRODUCT STARTUPS FIND DIFFICULT TO HIRE On average, the easiest talent to hire is operations: the most difficult. product management. 3.5 3.6 3.7 3.8 OPERATIONS MARKETING PRODUCT SALES PRODUCT DEVELOPMENT MANAGEMENT Overall, companies attribute difficulty primarily two internal factors: The INABILITY to pay competitive wages. The LACK of a brand reputation. WHAT DO PRODUCT STARTUPS PAY FOR TALENT? The modal pay for each of the talent areas seems quite consistent across software product startups. 66% 56% 66% 56% 56% OF STARTUPS OF STARTUPS PAY: OF STARTUPS OF STARTUPS PAY: OF STARTUPS PAY PAY: PAY: INR 25,000 INR 25,000 INR 25,000 INR 25,000 INR 50,000 Average Renumeration to to to to to (per month) INR 75,000 INR 75,000 INR 75,000 INR 75,000 INR 1,00,000 OPERATIONS MARKETING PRODUCT SALES PRODUCT DEVELOPMENT MANAGEMENT DOWNLOAD THE FULL REPORT HERE: http://bit.ly/ISPIRT_PIM Ispirt DESIGNED BY : ESHA GOYAL (visual.ly/users/eshagoyal24) BOBO