Bootstrap in Bangalore

I think if there is a place to do a start up in India, bangalore definitely is on the top of the list. If your plan involves rural market, I would still recommend having a registered office in bangalore. After all you will need one urban base to do your taxes, take legal opinion, meet investors or just network with other people like you. Apart from the pleasant climate, the no 1 reason you ought to start in bangalore is that it is the number 1 place. Some places just have the benefit of being the first and the most famous. After a while, you have to be there because everyone else is. According to a latest (2007) report I have with me 50,000 plus product development engineers are present in Bangalore compared to second runner up NCR at around 12,000. Bangalore is just so far ahead in the innovation curve – 4 times more product companies have presence here compared to any other city. Not just in IT but pioneers like Grover’s (Wine pioneers), Namdhari’s (great veggies), Daily Bread (fine bakery), Kati Zone (food chain with a central kitchen for Kati rolls) and the path breaking deccan aviation are all from bangalore (all new entrepreneurs – that’s why kingfisher is not in the list). Two of the best fairs in India in IT and Biotech are based in bangalore.

Today I attended a TIE event and the participation, energy and competence of attendees was unmistakable. And things have been getting better and better. I have been attending TIE events for 4 years now and today they even ran out of seats (which earlier happened only when Vinod Khosla was the presenter).

If you see the background of the dias, you will notice around 7 VCs sponsoring the event in some way. Four years ago VCs were just a little better than banks in terms of risk appetite. When I used to talk to them, they would act with airs, pretend to be uninterested and not encourage any talk around asking for money. Today, they are actively looking for stuff they can fund. They will distribute cards, invite proposals and arrange for meetings all the time concerned that they might loose the good deal to the VC next door. It is still not so happening at the seed level (I think another year or two to get there) but if you have a working model of the product/idea they are game.

Silicon Valley Bank has a monopoly in the VC community (all VCs are customers of this bank) and the only place in India where SVB has a branch is Bangalore. STPI bangalore is the only STPI with world class incubation facilities. IIM-B has one of India’s first enterpreneurship cell. Finally, bangalore has a network of people who are available for advise to younger entrepreneurs and soon the angel funding gap should also get plugged with more people making it big. Brand bangalore is also so big now that if you tell a prospect in US or Europe that you are a startup based in Bangalore, the perception is already positive. Imagine saying I am a start up in Chennai (where is that will be the reply!). I think I can go on and on but the point should be clear by now. Bangalore is the place.