This story is from January 4, 2017

Local investors can boost startup ecosystem, say techies

Local investors can boost startup ecosystem, say techies
Visakhapatnam: At a time when the Port City is gradually transforming into a hub for the information technology sector, tech entrepreneurs in the city believe that renewed focus on promoting the startup ecosystem by roping in local investors is necessary for Vizag to compete with metro cities.
According to entrepreneurs, in addition to technology skills, startups need to focus on executing ideas and bringing out a prototype into the market.
Also, there is a need to form angel investor chapters which would help budding startups receive funding for taking their ventures forward.
Speaking to TOI, Turnup startup founder Varun Satyam said, "Every tier-1 city has angel chapters which give an opportunity for startups to tap into and seek investments. This is not there in Vizag as yet. However, there are very good traditional businesses in Vizag and we need to have local investors funding local startups. We can't expect people from outside to come and invest initially because they may not be aware of the market scenario in this region." Furthermore, he said, "Once local investors start funding local startups, we can expect the startup ecosystem to boom." In addition to this, Sathyam mentioned that technological skills are necessary for startups to move ahead rapidly.
Echoing the sentiment, Ravi Teja K of Unihalt Technologies observed that startups need to develop their prototypes and conduct market studies if investors have to be interested in their product.
At the same time, he said, "Many of the startups are misled that if they have an idea, they will get funding. But, nowadays, apart from an idea, we also need to have a prototype ready and show that people are interested with the sales of their products."
Another entrepreneur running a tech startup also mentioned that it is important to pool resources effectively and also require mentors if a startup has to succeed in the city. He said, “The exposure and guidance required for startups to move to the next level is by and large lacking in Vizag even though some of the IT firms located here are extending their help to the students. Startups need to be sustained for at least three years if we have to see some amount of success. But, unfortunately, the startup ecosystem which provided free facilities such as internet and office space were disbanded too soon and only some of them were able to get into incubators.” He said, “Due to these hindrances, several startups have moved to Hyderabad or Bengaluru because they believe better opportunities await them elsewhere.”
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