70% of start-ups will fail, says Kris Gopalakrishnan
Follow“Almost 70% of start-ups will fail globally and only five to 10% will become significant and scale up,” said Kris Gopalakrishnan, the co-founder of Infosys and former CII President, on Monday, at the announcement of 12th Innovation Summit 2016 which will be held in Bangalore next week.
He further said that this trend should not be considered as a concern or a challenge because it’s a part of a natural process of evolution. "The key is what are the learnings, and how do we continue to nurture this," he added.
When Kris was asked about Indian companies who have managed to make a mark globally, he said " Flipkart, Snapdeal, Paytm and Freshdesk are the businesses that have made a mark globally, and that process will continue. Maybe three to five years from now, you will start talking about these companies in a big way," he said.He also said that companies in the transport, hospitality and logistics vertical will be the names in future in years to come.
The sudden slowdown of both private equity and venture funding is growing concern for the industry, and when Kris was asked about the reason for this slowdown , he said "Both private equity and venture funding have slowed down for a different reason because exits are not there. When this happens, money is not recycled."
"Most of the venture funds are waiting for some exits to happen, and the exits are happening through mergers and acquisitions - consolidation where you may not be able to get the full value of the investment," he added.
Asked if he sees a Google-type company emerging out of India, Gopalakrishnan stated, "Yes it is possible, but we also need to remember that, across the world, there is one Google."
The Summit will be held here on 28 and 29 July.
