70% startups globally will fail, says infy co-­founder

BENGALURU: Infosys co-founder and former CII president Kris Gopalakrishnan on Tuesday said almost 70% of startups globally will fail and only 5-10% will become large

BENGALURU: Infosys co-founder and former CII president Kris Gopalakrishnan on Tuesday said almost 70% of startups globally will fail and only 5-10% will become large and scale up.

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“About 20% will survive but will not grow. They will remain small enterprises, and may be only 5-10% will become large and scale up - that is the spastics globally,” he told reporters at the announcement of the 12th Innovation Summit 2016, of which he is the chairman, to be held here during July 28-29.

This should not, however, be treated as a concern or a challenge, but it is a part of natural process of evolution, he added.

“The key is what are the learnings, and how do we continue to nurture this,” he said.

Asked who has made a mark globally as of now, Gopalakrishnan said Flipkart and Snapdeal have made a mark andmay be in three to five years from now, people would start talking about these companies in a big way.

Asked if it is a worrying factor that most of the e-retailers are not making profits, Gopalakrishnan said there will be some consolidation and hoped some Indian-started entity will remain because global domination is possible in the internet field as it is not bound by any borders.

Gopalakrishnan said both private equity and venture capital funding have slowed down because the exits are not happening. “Most of these funds are waiting for some exits to happen and the exits are happening through consolidations where you may not be able to get the full value of the investment,” he said.