Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2012-12-12

87 tech start-ups in India faced closure in 2012: report

In a startling release made by the Microsoft’s start-up support programme, Microsoft Accelerator in India, out of 379 technology start-ups that were launched in India in 2012, 87 of them have faced closures due to multiple reasons in 2012, itself. The fig

In a startling release made by the Microsoft’s start-up support programme, Microsoft Accelerator in India, out of 379 technology start-ups that were launched in India in 2012, 87 of them have faced closures due to multiple reasons in 2012, itself. The figures were made available by Mukund Mohan, CEO-in-Residence, Microsoft Accelerator at Microsoft, in his blog.

Surprisingly, Bangalore, which saw the highest number of tech ventures coming up in the last five years, also witnessed the highest number of closures. More than 70 per cent of the shut downs were seen in Bangalore followed by more than 55 per cent in other cities. Delhi saw around 35 per cent closures while around 25 start-ups in Mumbai were closed.

Among the reasons cited by Mohan in his blog for the closures were inability to raise funds that accounted for 61 per cent of the shut downs followed by inability to collect money, getting a better opportunity, inability to get customers and founder’s own issues that held 43 per cent, 39 per cent, 28 per cent and 19 per cent respectively as other root causes for shutting down operations.

Mohan further said, “Over 60 per cent of the failed entrepreneurs don’t go on to start another company or join a start-up, but instead go to work at a much larger company.”

The study tracked over 6,214 entities including 3,948 tech-product companies and few service companies. The study was carried out via face to face interaction with the founders of 65 per cent of these companies and also relying on secondary data but the closure of the data was completely based on face to face interviews, according to Mohan.

Related opportunities
  • Home Furnishings
    About Us: Marshalls - India's No. 1 in Wall coverings since 1975 brings..
    Locations looking for expansion Maharashtra
    Establishment year 1975
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai Maharashtra
  • Robotics & Technical Training
     About Us: Format Name Investment Brand Fee Space Staff Expec..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2019
    Investment size Rs. 50 K - 2lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Pune Maharashtra
  • Casual dine Restaurants
    About Us: Our Restaurant Chain Serves Fresh Pizza, Pasta, Soups and..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Others Food Service
    About Us: Mumbai’s Most Popular Traditional Snack Brand.By India’s Leading Manufacture..
    Locations looking for expansion Mumbai
    Establishment year 1977
    Franchising Launch Date 2018
    Investment size
    Space required 400
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Mumbai Mumbai
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts