21-year-old Aditya Nayak (name changed), a former IIT-B student and founder of an AI startup incubated by SINE (Society for Innovation and Entrepreneurship) is one of the many student-entrepreneurs who find academic incubators lacking technical expertise and mentorship crucial for early-stage startups.

“It’s not enough to provide working space for a subsidised fee and leave it at that. In the early stages we need help figuring out an appropriate business model and ensuring we don’t experience quick cash burns that send us crashing in a few months,” said Nayak. Turning to a private incubator after his experience at SINE, Nayak’s startup has been able to pivot to a stronger business model.

The Startup India Action Plan which was unveiled by PM Modi aims to set up 35 new incubators based on the public private partnership (PPP) model. A step in reinforcing the growing startup ecosystem in India, investors and firms alike hold the view that government funding within the ecosystem is a welcome sign, but running incubators should be left to the private sector.

“The reform in startup policies indicates we are moving in the right direction. However, private incubators are better in technical knowledge and mentoring,” said Dr Apoorv Ranjan, founder, VentureCatalysts. Ranjan adds that PPP model can accelerate the growth of the incubator industry which will impact economy growth.

Source: The Economic Times