Technology Business Incubation

Most of the Start-ups fail. It's depressing to see some innovative technology based companies started by very high-energy youngsters either get sold or close down. Traditional incubation offers not much scope to improve the survival rate of start-ups. Actualy if the success rate of technologies is not more than 15%, how can we expect for the companies based on those technologes to be successful. Also, because of this fear, a lot of start-up start something with not-so-innovative idea, to get validation from the market in first place.

The idea is to increase the survival rate of start-ups by building incubation environment. A few incubators won't do, but the reach to every nook-and-corner of the country will required. Maybe collaborating with the infrastructure developers will help a lot of start-ups to give a small %age in exchange for the office space to start off.

Also, not only outside environment but helping in building the technology successfully will add a lot of value. This can be done by utilizing open innovation and collaborations with the corporate and govt. research labs. IBM, Sun Microsystems, Intel are doing it to some extent but the potential is not unleashed yet. They are doing mainly for brand-image and an experiment for future collaborations but not for profit-making. Waking up all the big companies to the idea through a proper channel to direct, and enabling start-ups to work with students, scientists, engineers and their potential customers over a web-based platform providing collaboration tools will definitely go far to create value.

Also, mentors today give out some time to start-ups but not in a manner required, because they need to handle their own companies and they don't benefit personally. And those who have started Venture-Catalyst businesses/consulting, first demand stake and then help in business development and mentor. But remember, if stake's gone, it's gone, even if they don't provide any services in the future. Start-ups (cash-starving) cannot afford to hire consultants either. So, no proper framework is there at present. Also, talking to a lot of start-up experts and some VCs and angel investors, even they don't have an answer to this.

Most of the incubation centers are govt. aided or corporate funded. Sustainable incubation is the only key to spread it like wildfire otherwise it's not going anywhere. A very different break-through business model will be required to make incubation sustainable.

Would like to have your comments and opinions, targeting the feasibility and sustainability of such a model incubator.


Whats's Open Innovation??