Government Pinpoints the Startup Deadpool Scenario as a Mild Declining Phase
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Government Pinpoints the Startup Deadpool Scenario as a Mild Declining Phase

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BENGALURU: With almost 800 new technology based enterprises putting a halt on their operations or merely surviving from the past 3 to 4 years, the government claims the depressing situation to be only a temporary phase rather than disaster. According to a statement given by Shailendra Singh from the Department of Industrial Policy and Promotion Joint Secretary to the IANS, startups from areas such as healthcare and dotcom are going through a considerably declining period.

Recently, Tracxn Technologies, a data analytics firm had enlisted around 800 startups founded after the year 2011 that have either stopped functioning or have failed completely. F**ked Company, a popular website, also created a similar list. The website gathered information and enlisted the major dotcom failures named as the Dotcom Deadpool, while the Tracxn’s list was known as the Startup Deadpool.

“To make any detailed statement on the reasons for failure of these startups, we need to study the report. We will be talking to Tracxn this month to find out about the basis of the report, the reasons for failure, and analyze,” says Shailendra Singh.

Singh also states that the startups’ inability to perform well during a global crisis is the main reason behind their collapse. Considering the dull market scenario, a boost in enterprise performance and overall scales is also difficult.

Nikhil Donde, Managing Director of Protiviti India pinpoints innovativeness and experimentation to be the prime factors that can lead startups to success. According to him, fault in the business model, lack of funding, or the inability to satisfy market demands are the main causes behind the failure.

When asked about the lack of funding, Shailendra Singh remarks that the required funds are provided by the venture and angel funding regularly. Every year, the government is also offering around Rs 2,500 crore funds for the development of startups.

“Replicating the foreign model without indigenization, focusing on customer acquisition without becoming self-sustainable and ‘me-too’ syndrome of copying a popular format has led to many failures of startups,” says Amit Jindal, Partner, Felix Advisory.

Read Also:
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