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October - 2016 - issue > Cover Feature

Collabrant Incubators: Incubating new Businesses & Creating an Ecosystem for nurturing the business to scale

si Team
Sunday, November 6, 2016
si Team
A recent study to understand why startups fail revealed that poor products only accounted for 17 percent, whereas squandering of funds took the major chunk with 40 percent numbers. Considering this scenario as a challenge for start-ups, Collabrant Incubators Pvt. Ltd., a Bangalore-based company incorporated in December 2004, is helping the founders to start off on a right foot by offering Incubation and Acceleration services and providing hands-on implementation support in financial structuring & planning and go-to-market strategy. Promoted by professionals from different backgrounds and several years of business experience has enabled the company to provide service to more than 75 clients over a broad array of industries including, but not limited to, Consumer Products/services, e-Commerce, Healthcare, Education, Retail and Engineering.

The Out-of-the-box Approach

Collabrant entered the market at a time when startup and incubation were taking baby steps in the country. Hence creating general awareness what incubators provides was a Herculean task. Changing its strategy, the company initially assisted few family managed businesses where the second generation wanted to do something different. From managing their financial restructuring to incubating and accelerating the ventures of second generation entrepreneurs, Collabrant has come a long way.
With niche focus on catering startups, early stage entrepreneurs, MSMEs and new project startups of an established company, Collabrant leverages its promoters and associate directors' experience to bring a holistic approach to financial and business needs of an organization. The company aims to bring a 360 degree approach to most businesses creating a complete ecosystem and in building a financial plan to financial structuring, valuation, providing access to investors and then moving from organisation building to nurturing the business to scale with implementation support.

Envisaging a long term relationship with customers, Collabrant is very selective in signing up with a customer. "We spend couple of weeks with the promoters to understand their vision, commitment, passion, requirement and their expectations. We also do an internal check whether there is a need for the product or service in the market and whether there is an interest from the investors or bankers to fund such ventures," says PK Sambamoorthy, Co-Founder & Director, Collabrant Incubators. Considering most of the customers are in the early stage of business, Collabrant has structured its fee in such a way that the initial fees for incubation services are mostly in the form of equity and a back ended variable fee from the business for acceleration services.

Being a niche incubator and accelerator, Collabrant works closely with the promoters of incubated companies, and deploy only the senior professionals to manage their requirements providing hands on implementation in finance, sales and marketing with one of Principal Director managing the account. The company does not believe in deputing mid-level employees to attend the customer needs resulting in its limited bandwidth, which restricts the number of account the company can manage.

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