Categories
STARTUPS News

Startup CEO salary increased by 2.7% in 2022

Startup CEO salaries vary by the amount of venture/seed funding that the companies have raised…reports Asian Lite News

The average startup CEO salary increased by 2.7 per cent in 2022 to reach $150,000 per annum globally from last year, while the median increased to $140,000, according to a new report.

According to startup accounting firm Kruze Consulting, in 2022, chief executives at early-stage companies that have raised over $10 million in financing were paid just $199,000.

“Founder CEOs at companies that have raised under $2 million were paid $106,000 on average — a difference of over $90,000,” the report mentioned.

Startup CEO salaries vary by the amount of venture/seed funding that the companies have raised.

The accounting firm looked at data from over 250 seed and VC-backed startups.

It found that average represents a 7.9 per cent increase in pay from 2020, when CEO wages went down owing to the Covid-19 pandemic.

Companies that raised over $5 million and over $10 million in funding saw their CEO pay go up by 7.5 per cent and 13 per cent, respectively.

“However, startups with more limited funding saw their CEOs make less, by about 7 per cent, than in 2021,” the report mentioned.

The report found three primary drivers for this behaviour.

“Firstly, and most obviously, companies with more funding are better able to pay their CEOs. Secondly, the increased CEO salaries recognises that these CEOs are more effective at fundraising, much like how compensation increases for CEOs in mature companies that generate greater profits,” said Healy Jones, VP of Financial Planning & Analysis for Kruze.

“Finally, startup culture can generate pressure to not take salaries,” Jones added.

Biotech and pharmaceutical companies tend to have the highest CEO compensation, with seed funded companies paying their CEOs nearly $161,000.

Healthcare companies had lower founder/CEO pay.

“We realised that this is because of the rise of D2C healthcare companies, which tend to seem more like SaaS businesses and less like a healthcare company with a CEO who has an advanced degree,” the report mentioned.

During Covid, the average startup CEO salary dipped 2 per cent to $139,000, but bounced back to $146,000 at the beginning of 2021.

ALSO READ-Google announces $14 mn reinvestment to provide digital training

Categories
Business STARTUPS News USA

US based Rise Capital to launch operations in India

India is currently the third largest startup ecosystem globally, after the US and China…reports Asian Lite News

San Francisco-based investment fund Rise Capital announced it is launching its India operations and will invest in early-stage startups through its global fund III.

The VC fund said tech startups in India will create well over $1 trillion in M-Cap by 2030.

“We are quite bullish on the Indian venture space and remain committed as we are a long-term player. Our ability to spot high potential startups as demonstrated in other emerging regions gives us the confidence to deploy a significant part of our global fund in India,” said Nazar Yasin, Managing Partner, Rise Capital.

Rise Capital is known for investing in emerging economies like Latin America, the Middle East and North Africa (MENA) region, South-East Asia and Africa.

India is currently the third largest startup ecosystem globally, after the US and China.

Rise Capital has hired Anuj Mehta as its first investment team member for the development and implementation of its India investment strategy.

“We bring unique value to our portfolio companies because all of our partners are former operators who have helped build $1 billion plus tech companies across emerging economies,” said Yasin, ex-Tiger Global and Goldman Sachs executive, and former CEO of Forticom.

ALSO READ-Zomato share price falls 50%

Categories
Business STARTUPS News

Deep tech platform Instoried secures $200 mn from GEM

Instoried aims to go public via SPAC (special purpose acquisition company) or the traditional IPO route…reports Asian Lite News

Deep tech platform Instoried on Thursday said it has secured $200 mn commitment from global investment group GEM Global Yield, and will use the funds to expand operations globally and develop artificial intelligence (AI)-based content generation tools.

Led by a woman founder, Sharmin Ali, Instoried uses AI to help people write original and more lively content, make messaging crisper, improve headline impact, improve empathy and tone.

Utilising 30 million data points, the platform’s proprietary algorithm powers a top-notch collaborative content creation tool that provides instant feedback in real-time.

“Instoried helps people convey the proper tonality in everything they write from email to blogs, from marketing copy and advertising to long-form articles,” said Sharmin Ali, also the CEO of Instoried.

The platform will further invest in its technology to add a Google Chrome extension, a WordPress plug-in and other elements to its product portfolio.

Under the agreement, GEM will provide a share subscription facility of up to $200 million, to be drawn at the option of the company, for a 36-month term following a public listing.

Instoried aims to go public via SPAC (special purpose acquisition company) or the traditional IPO route.

Additionally, the platform has plans to grow its executive team and presence globally.

For the India market, Instoried will focus on hiring for leadership and technology roles, develop the tech stack to launch their own content generation tool and invest in marketing in India and Asia markets.

GEM is a $3.4 billion, alternative investment group with offices in Paris, New York and the Bahamas.

ALSO READ-Standard Chartered Unveils Strategy to Achieve Net Zero

Categories
STARTUPS News

$12 billion growth in India’s startup fundraise

India emerged as the third largest startup ecosystem in the world this year, after the US and China, as per Hurun Research Institute…reports Asian Lite News

Domestic startups have raised over $12 billion during the first three months of 2022 as compared to $4 billion during the same period in the previous year, says a report.

According to data tracking platform Fintrackr, 528 startups, including 324 in their early stage and 123 in their growth stage, have announced their funding rounds worth $12.06 billion during the first quarter of this year.

In December, data provided by a leading startups publication said that India had 82 unicorns with a total funding of over $38.4 billion (from 2014 till December 4, 2021).

India emerged as the third largest startup ecosystem in the world this year, after the US and China, as per Hurun Research Institute.

In the third quarter (Q3) last year, Indian startups received record fundings, with investment totalling $10.9 billion across 347 deals, a PwC India report said.

Meanwhile, a recent report said that accelerated funding activity is expected to create over 100 unicorns in India during 2022.

Over the past five years, the number of software-as-a-service (SaaS) firms have doubled in India and SaaS firms in the country are poised to reach $30 billion in revenue by 2025.

ALSO READ-B2B edtech startup raises $70 mn

Categories
Business STARTUPS News Tech Lite

B2B edtech startup raises $70 mn

The new funding round came eight months after Classplus raised a $65 million series C funding in June last year…reports Asian Lite News

B2B edtech startup Classplus on Tuesday said it has raised $70 million in a Series D round co-led by Alpha Wave Global and Tiger Global.

Founded in 2018 by Mukul Rustagi and Bhaswat Agarwal, Classplus is a mobile-first SaaS (software-as-a-service) platform that allows educators and content creators to build their online presence, digitise their offline tuition centres and sell their courses online.

The startup said that funds will be used to enhance the product and expand its global presence. Classplus recently announced expansion in Southeast Asian markets, including Singapore, Vietnam and Malaysia.

The new funding round came eight months after Classplus raised a $65 million series C funding in June last year.

“Going forward, we’ll also be investing in new acquisitions and partnerships that will enable us to continue delivering best-in-class experience to the educators and helping them create an impact in the education system,” said Rustagi.

Abu Dhabi-based Chimera Ventures has come in as a new investor while existing investor, RTP Global, has doubled down on their investment in the NCR-headquartered company.

The new round values Classplus close to $600 million, a more than 2 times jump in the valuation from the previous round.

Classplus has digitised over 1 lakh educators across 3,000 towns and cities serving more than 25 million students.

A majority of its educators have witnessed a 2-3 times increase in profitability within six months of adopting the platform, claimed the startup.

ALSO READ-Paytm appoints Anuj Mittal as VP for investor relations

Categories
Business India News STARTUPS News

India targets to be the largest startup ecosystem

The Minister also said that startups need to experiment, fail and learn from their experiences…reports Asian Lite News

India aspires to become the largest startup ecosystem in the world, Commerce and Industry Minister Piyush Goyal said.

Addressing a session on “Gateway to Growth – Roundtable on Indian Startup Ecosystem” in Abu Dhabi, he said: “Today we are the third largest startup ecosystem, but our aspiration is to be the world’s number one startup destination,” as per an official statement.

“The startup bug has caught India’s imagination. The entire innovation ecosystem that the startup industry represents is giving a new direction, new momentum to India,” he said, as per the Commerce and Industry Ministry statement.

According to Goyal, India offers one of the best ecosystems for startups with a special ‘jugalbandi’, or blend between investors and entrepreneurs to get a balanced outcome and achieve a win-win solution for all.

“I have seen tremendous response from the Dubai Expo where our startups have got the opportunity to raise finances, sign MoUs and get angel investments. All these aspects will help strengthen India’s strong bond of friendship with the UAE.”

The Minister also said that startup need to experiment, fail and learn from their experiences.

“I would urge all of you from the startup world to go extra mile and take the startup story to all the remote places, villages, small towns, northeastern India and other regions,” he added.

On the government’s role in promoting startups, he said that India aims to provide a level playing field and the best business ecosystem.

“We have recently finalised the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which is expected to further enhance bilateral trade, B2B engagement and explore attractive investment opportunities.

“I can assure you that we will take this partnership to newer heights in the areas of sustainability, aerospace, space technology, connectivity, AI, data analytics, 5G, Metaverse, etc. We look forward to leveraging each other’s offerings and expertise,” he said.

In addition, Goyal said that the UAE-India partnership is destined to play an important role in the global economy and in ensuring a better future for billions of people around the world. “This will be a defining partnership for the 21st century.”

ALSO READ-India to recover pandemic battered aviation industry

Categories
Business STARTUPS News

Pankaj Bansal: Dwarka Expressway will be a game-changer

Over 5,000 recognised startups were added in Delhi-NCR, while 4,514 startups were added in Bangalore in the last two years…reports Asian Lite News

Pankaj Bansal, Director M3M India, believes that 61,400 startups and 83 unicorns will look to invest in commercial and residential properties in NCR-Gurugram and NPR and Dwarka Expressway will be a game-changer.

As per Orios Ventures Partners report, the Indian startups have raised $42 billion in 2021, up from $11.5 billion in the previous year. The Indian government has also recognized 14,000 new startups in 2021. As on January 2022, India has 83 unicorns with a total valuation of $277 billion.

The latest Economic Survey 2021-22 also states that Delhi-NCR has replaced Bangalore as the new startup capital of India. Over 5,000 recognised startups were added in Delhi-NCR, while 4,514 startups were added in Bangalore in the last two years. Though, with a total of 11,308 startups, Maharashtra has the highest number of recognised startups.

The demand for office space in Delhi-NCR region has grown 50 per cent year-on-year in 2021, majorly due to strong absorptions by startups and technology firms. In 2021, the absorption in the office space segment was 6.3 million square feet and the startups absorbed 1 million square feet. By 2022, absorption of Grade-A office space is estimated to exceed 700 million square feet, with Delhi-NCR itself accounting for the majority of this demand. Delhi-NCR has grown by 35 per cent Y-o-Y, from 3.88 million square feet to 5.23 million square feet. The Dwarka Expressway is further going to boost this demand.

“India has become the third largest startup ecosystem in the world after US and China. India has added 33 Unicorns in a single year. India’s 61,400 startups and 83 unicorns are all set to give a booster dose to the Indian commercial real-estate market in the coming years. Startups have leased about 2.2 million square feet office space in 2021 in the top three metros of India—Delhi-NCR, Mumbai and Bengaluru—marking a 56 per cent rise from 2020 in tandem with a spate of $1 billion-plus valuations. Many reports now suggest that India may add another 50 fresh unicorns soon. These startups and unicorns would need office and residential space with most-modern amenities & facilities with good connectivity, and NCR-Gurugram and NPR is expected to be their first choice,” says Pankaj Bansal, Director – M3M India, one of the fastest growing real-estate company in India.

Pankaj Bansal adds, “Keeping the requirements in mind M3M India has recently launched M3M Capital in sector-113, Gurugram, a complete luxury golf residential project, which is on Dwarka Expressway with a top-line of Rs 4,000 crore. At present we have launched about 650 apartments of 2.5 and 3.5 accommodation, and the project has exclusive golf-courses, private foyer, green landscape, separate yoga & meditation area, and a 60,000 square feet clubhouse. The project has close proximity to Aerocity and Delhi International Airport, and is part of larger vision for Smart City Delhi Airport. The response has been immense and in the first three days of its launch the project clocked Rs.800 crore booking.”

The declaration of 16th January, as the National Startup Day by the Prime Minister Narendra Modi has given new enthusiasm to startups. Recently, Union Minister of State for Electronics and Information Technology, Skill Development and Entrepreneurship Rajeev Chandrasekhar also said that during the next 25 years, the Indian economy’s growth and expansion, as well as the creation of employment and investments, will largely be driven by the country’s startup and entrepreneurial ecosystem. NCR-Gurugram and NPR is going to be a major attraction for investors and post commencement of Dwarka Expressway, the demand for residential and commercial space is expected to increase exorbitantly.

ALSO READ-Accenture launches women founders programme in India

Categories
Business STARTUPS News Woman

Accenture launches women founders programme in India

The company said that startups applying for the programme must be based out of India and have a working prototype with early adoption metrics…reports Asian Lite News

Global professional services company Accenture on Friday launched the Women Founders Programme in India to help early-stage, women-led Indian startups in the business-to-business (B2B) deep tech and enterprise SaaS domain grow and advance their businesses.

Under this programme, Accenture will provide selected technology startups in India with an equity-free grant of up to $60,000, along with market and network access and mentoring.

“The technology industry needs active participation of women as technologists and entrepreneurs to strengthen its innovation abilities and drive market-relevant solutions using deep tech,” Mahesh Zurale, senior managing director, lead – Advanced Technology Centers in India, Accenture.

“Accenture is committed to supporting women in technology and helping female entrepreneurs grow their businesses, and the Women Founders Programme in India is one of many initiatives underway to contribute to these efforts,” Zurale added.

Registrations for the Women Founders Programme are currently open to early-stage B2B technology businesses that have at least one woman founder and are focused on advanced technologies such as artificial intelligence, internet of things, cloud, blockchain, Web 3.0, metaverse, big data and analytics and extended reality.

The company said that startups applying for the programme must be based out of India and have a working prototype with early adoption metrics.

Applicants will be shortlisted and selected by leaders from Accenture and the ecosystem-based on product differentiation, disrupt-ability quotient, leveraging of deep technologies, commercial viability and founder profile.

ALSO READ-‘Accenture Cloud First’ gets $3 Billion Investment

Categories
India News Science STARTUPS News

Space sector startups boom in India

At present, India accounts for only about two per cent of the space economy, much behind the major players – USA and China…reports Asian Lite News

The number of new startups in the space sector more than doubled in 2021 to 47 as compared to the previous year numbers, said India’s Economic Survey that was released on Monday.

According to the Economic Survey, the number of new startups in the space sector registered in 2021 was 47 up from 21 in 2020 and 11 in 2019.

With recent policy initiatives and private sector participation, the Indian space sector is expected to capture a larger share of the global space economy, which was close to US$ 447 billion in 2020.

At present, India accounts for only about two per cent of the space economy, much behind the major players – USA and China, the Survey said.

According to the Survey, across the globe, the trend of space activities is in a state of transition — from being primarily driven by government, the sector has been witnessing increasing private sector participation not only in the traditional vendor role but also in taking up end-to-end space activities.

With this in mind, the government undertook reforms in space sector in 2020 whereby:

– the public sector NewSpace India Limited (NSIL) would own the operational rockets and satellites of Indian Space Research Organisation (ISRO);

– The NSIL shall act as aggregator of user requirements and obtain commitments;

– setting up Indian National Space Promotion and Authorization Centre (IN-SPACe), the regulator and promoter of private players in the space sector;

– The IN-SPACe will also allow the private sector to use the facilities of the Department of Space/ISRO for a fee.

The interim IN-SPACe board has received close to 40 proposals from large industries, MSMEs, startups and academia covering broad range of activities in space domain — cutting across both upstream (launch vehicle/satellite manufacturing) as well as downstream (Earth Observation applications, communications, and others), the Survey notes.

According to the Economic Survey, five private satellites have been tested at ISRO facilities, four student satellites were launched aboard the PSLV C-51 rocket.

The national registration mechanism for space objects has been implemented, with five satellites registered.

A total of six MoUs have been signed with private/academic entities for sharing technical expertise and facilities, the Survey said.

ALSO READ: India’s exports all set to pip pre-Covid levels

Categories
Business STARTUPS News

What startups expect from Union budget 2022-23

Vidit Aatrey, Founder and CEO of homegrown social commerce platform Meesho, said that a singular focus on augmenting offline MSMEs with online distribution could be a game-changing economic transformation opportunity…reports Nishant Arora

To further aid small businesses and empower entrepreneurs, the Union Budget 2022-23 should introduce additional startup-friendly policies and tax relaxations to enable spending on innovation, ease-of-doing business and reducing compliance costs, a slew of homegrown startups said.

New reforms, policy assistance and support mechanisms for establishing a focused approach in solving unmet financial needs through technology will significantly benefit the economy, they stressed.

“We’ve seen a substantial spike in the adoption of digital payments in the last one year. I’m hoping that in the upcoming Budget, the government will think of alternatives to the Zero MDR (merchant discount rate) policy, as that will help promote e-payments and drive significant digital adoption among businesses,” said Harshil Mathur, CEO and Co-founder, Razorpay.

In last year’s Budget, Finance Minister Nirmala Sitharaman had announced Rs 1,500 crore to further accelerate digital payments’ growth in the country.

Mathur said that it would also be desirable for the government to increase contribution to the Fund of Funds for Startups (FFS).

“Hassle-free loan disbursements, automation of tax and compliance, paper-less approvals, and incentives to adopt digital banking practices will also be welcome changes that can support the growth of MSMEs,” he added.

To incentivise startups, the government had last year extended the eligibility for claiming tax holidays for startups by a year to March 31, 2022.

It also extended the capital gains exemption for investment in startups by a year to March 31, 2022, to boost funding.

The country has also seen numerous startups incentivising their employees in the past year with buying back ESOPs.

“Deferring tax payments when exercising the option, plus waiving tax for some ESOP receipts, will also be a laudable change in the new budget,” said Mathur.

According to Ravish Naresh, CEO and Co-founder, Khatabook, they are hoping for a progressive Budget, especially aimed at promoting homegrown startups focused on problem-solving for India.

“New reforms, policy assistance, and support mechanisms for establishing a focused approach in solving unmet financial needs through technology will significantly benefit the economy,” Naresh told.

“In addition, the government’s continued focus on enhancing digital infrastructure in the country will ensure progress towards equality in digital access in FY22-23,” he added.

In the last year’s Budget, the government had said it will facilitate setting up of a world-class fintech hub in Gujarat International Finance Tec (GIFT) city.

The government also proposed a portal to collect relevant information on gig workers to help formulate social security schemes for them.

Vidit Aatrey, Founder and CEO of homegrown social commerce platform Meesho, said that a singular focus on augmenting offline MSMEs with online distribution could be a game-changing economic transformation opportunity.

“We would like to see the government focus on policies that will create a level playing field for offline and online sellers with less than Rs 40 lakh turnover,” Aatrey told.

“Simplifying GST compliance requirements for online sellers will also enable millions of small businesses to leverage the potential of e-commerce and contribute to India’s growing digital economy,” he added.

In addition to this, the startups hope that the government incentivises capital formation in the area of logistics and cold chains through policies and infrastructure development.



Akash Gupta, Co-founder and CEO, Zypp Electric, said that they are optimistic that the government will announce new initiatives to encourage local EV manufacturing, facilitate easy finance and create an innovative EV ecosystem.

“We urge the government to reduce GST on EV purchases and rentals from 5 per cent to 2 per cent. A reduced GST would allow consumers to smoothly shift to EV,” Gupta told.

Indian startups raised a record $24.1 billion in 2021, a two-fold increase over pre-Covid levels, while $6 billion were raised via public markets with 11 startup IPOs, a Nasscom-Zinnov report said last week.

The Indian tech startup base continues to witness steady growth, adding over 2,250 startups in 2021, which is 600 more than 2020.

ALSO READ-India sets $300 bn goal in electronic exports