An in-depth analysis of more than 2,000 applications received for the second cohort of Atoms, an Accel initiative aimed at pre-seed companies, revealed some interesting trends regarding innovation in India.
Entrepreneurs from across the length and breadth of India have shown robust interest in establishing their own start-ups, with large numbers situated in non-metro cities. Applications came in from 35 cities in India, with a large number of applicants stating that their work was completely location-agnostic.
Interestingly:
● Close to 40% of the applications came from non-metro cities, showing that as a country India is definitely moving up the innovation and entrepreneurship value chain.
● Bangalore, Delhi and Mumbai (the metros) accounted for more than 50% of the applications.
● Bhubaneswar, Coimbatore, Lucknow, Patna and Surat all contributed more than 10 applications each.
● Indore, now billed as India’s up-and-coming startup capital, brought in 20 applications all by itself.
● Over 100 entrepreneurs applied for the Atoms program from Gurgaon
First Time Entrepreneurs and Repeat/Serial founders
● 55% of the applicants were first-time founders; while close to 45% of the applicants have at least one co-founder with prior experience of building a startup.
● Almost 45% of the companies have two founders.
● 21% of the applicants have three or more co-founders, preferring to work in groups.
Other interesting insights
● More than one-third of the applicants have already launched their product or service, with another 20% having a working minimum viable product (MVP). It is interesting to note that around 22% of the applicants are at the idea stage.
● 61% of the companies have not yet started generating any revenue at all. This could mean that the start-ups are in stealth mode developing the product/service/solution.
Through the Atoms program, Accel aims to support budding entrepreneurs, irrespective of which stage the company is at. As part of the program, the start-ups received $250K in non-dilutive capital, one-on-one mentorship from established business leaders, as well as access to the global Accel community.
Prayank Swaroop, Partner at Accel India, said “When we conceptualized Atoms, our goal was to design a program which would bring founders a valuable learning experience alongside accessible capital. As Atoms continues to grow, we look forward to working with more startups working outside the country’s traditional business hubs and at any phase of their business. Welcoming founders from different walks of life means solving more varied problems, not to mention building a more vibrant community.
The most exciting part about Atoms is that the start-ups receive capital with no equity burden. Joining our program implies gaining the backing of our investment system, venture development teams, access to over 200 portfolio founders as mentors, and access to more than 100 experts from our Accel network. We look forward to supporting more entrepreneurs in the journey of building innovative products and solutions.”