The era in which entrepreneurship and startups were only restricted to metro cities has long since passed. In India today, Tier 2 and Tier 3 cities are home to almost 50% of the recognised startups, as per data from the Union Ministry of Commerce and Industry. The ongoing technological revolution taking place in Tier 2 and Tier 3 cities is accelerating economic development in the nation and bringing about socioeconomic change on a worldwide scale. According to a spokesperson from Chandigarh Angels Network (CAN), startups in smaller cities generally benefit from lower operating costs than those in Tier 1 cities. “Office space, hiring new employees, and living expenses are often less expensive, which might be beneficial, particularly during the financial winter. Since they can operate more cheaply, entrepreneurs may extend their runway and concentrate on sustainable growth,” the spokesperson stated. However, the startups in smaller cities are finding it relatively more challenging to secure funding compared to those located in major startup hubs. “Nevertheless, despite the funding winter, there are still opportunities available, and investors are recognising the potential of startups in smaller cities,” the spokesperson added. The funding winter applies more to Series A and upwards startups, according to Prabhash Nirbhay, Founder and Chief Evangelist at Jharkhand Angels; angel networks are less impacted because they are still in the very early stages. “However, startups in general are looking at reaching profitability faster.” In order to raise capital and foster their growth, startups in Tier 2, 3, and 4 cities are increasingly turning to their local network of investors. For this article, we spoke with angel networks that are either based locally or that identify and assess prospective investment opportunities in small geographic areas.
Bu hikaye Entrepreneur magazine dergisinin June - July 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Entrepreneur magazine dergisinin June - July 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How To Ask Family For Money
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.