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87 Indian Tech Startups Pulled their Shutter Down in 2012

By SiliconIndia   |    6 Comments
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Bangalore: Carefully scrutinizing the facts and figures of the recent past one can quickly come into a conclusion that, the startup eco system in India is growing wide. It must be a little surprising to know the fact that around 379 tech startups were launched in India in 2012 out of which 87 shut down their operations in the same year. As blogged by Mukund Mohan.

Microsoft Accelerator India conducted the study in which Mukund Mohan; the CEO in Residence, Microsoft Accelerator said that it tracked over 6214 entities which included 3948 technology product companies and few service companies which were building great products and other side projects that fetched the founders great traction and revenue. The study was conducted by performing face to face interaction with the founders of 65 percent of these companies and also relying on secondary data but the closure of the data was completely based on face to face interviews. The study reports that:

The year 2010 and 2011 saw the highest number of tech startups with 452 and 519 respectively but 2012 saw just 379 startups.

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Reader's comments(6)
1: "Companies don't killed by competition, they commit suicide"
- Sridhar Vembu
Posted by:Manoj - 13 Feb, 2013
2: timely survey, to learn and move forward
Posted by:tnvm - 16 Dec, 2012
3: But y isnt kerala there anywere in the list... Emerging kerala is picking up pace but news on local startups from there at all?
Posted by:ink - 11 Dec, 2012
4: Startup failures are common. It would be nice to compare the data with US startup failures. However, what makes India different is socioeconomic factors. It is difficult for an entrepreneur to come back and reinvent while pressures mount from friends and family to give up. Also it is very hard for entrepreneur to start a "Garage" operation in India. Very few talented people want to work for a no name garage operation. Startups are forced to spend tens of lakhs of rupees on office furniture and space just to attract talent.
Posted by:Krishna Kurapati - 11 Dec, 2012
true.. it is also a pressure from friends and family to work in a company which is nicely furnished. but some startups dont encourage talent all they expect is completion not the perfection in it and the prerequisites unclear for a product based firm that they want to be built from nothing.
Sid Replied to: Krishna Kurapati - 29 Jan, 2013
6: Shocking report!!! Well compiled
Posted by:paul - 11 Dec, 2012