Two out of every three startups engaged in mobile related domain are targeting markets outside India as part of the business strategy, according to a study by Helion Venture Partners, an India-focused early-to-mid-stage VC fund.
The study, which captured responses from around 100 mobile entrepreneurs almost equally split between consumer and enterprise focused spaces, revealed that 68 per cent of the respondents are looking at the overseas markets of which 40 per cent of them are looking at the US as the primary destination.
Of the rest, around 18 per cent are looking at emerging markets that exclude India and just 10 per cent are looking at a global market as a whole.
As per this study, the average age of Indian mobile entrepreneurs is higher compared to the US with only 11 per cent below the age of 25. Also, unlike the US where a majority of mobile startups are founded by 20-year old college dropouts, in India less than 10 per cent are fresh out of college. About 90 per cent have worked with a large company or have prior startup experience (and in many cases founded a startup themselves).
The study further reveals almost 70 per cent of the respondents surveyed for the study are planning to raise VC funding immediately to meet both short and long-term goals. As much as 78 per cent expect that the next leg of growth will require up to $1 million in capital for the next six months while getting to maturity will take an additional $4 million in capital.
A majority (as much as 88 per cent) of Indian entrepreneurs in the mobility space are building solutions that are 'mobile first' and not mere transitions from the web world.
The Helion report also suggests that mobile entrepreneurs have figured a quick, efficient and lean model to build their product.
More than half of startups in India got to a minimum viable product (MVP) within six months and with under $250,000 in total capital investment and by running a lean ship of less than 20 people.
On challenges that these startups were facing, the topmost thrown up by the Helion survey are go-to-market and hiring. Other challenges include finding the right product-market fit and user experience.