Startup Street: An Indian Firm Claims Its Algorithm Can Predict Your Startup’s Success
Here’s what went on this week on Startup Street.
This week on Startup Street, a Pune-based firm says it can predict startup success; a Japanese company that’s promising artificial shooting stars by 2020; and some bad news for the Indian startup ecosystem. Here’s what went on:
Will Your Startup Succeed? Ask This Algorithm
SRKay Consulting Group’s new algorithm can predict a startup's future. At least, that's what the Pune-based firm claimed at the United Nations Conference on Trade and Development in Geneva.
The algorithm uses several human-only attributes for the prediction, which have been largely ignored by startups, investors and funding groups, according to the company's statement. "About 78 percent of startups are successful due to human-only factors while the failures are primarily because of ignoring these factors," Alok Kumar, Managing Partner of SRKay said.
The algorithm MindMatch was based on the research by SRKay’s talent solutions venture SCIKEY. MindMatch uses artificial intelligence and psychological analysis to predict success at individual and team levels, the company added.
More than 90 percent of startups in India fail within the first five years, a 2017 study by IBM showed. The third-biggest reason for startup failures was not having the right team, according to a study by CB Insights.
Japan-Based Startup Plans Artificial Shooting Stars By 2020
A Tokyo-based startup ALE Co., is developing a technology that can create "shooting stars on demand" and will be ready to deliver the world's first artificial meteor shower over Hiroshma, as soon as 2020, according to a report by Japan Times.
The startup is in the final stages of developing two micro-satellites, which will release particles into space. These particles will then glow brightly as they enter the Earth's atmosphere, the startup explains on its website.
"Since we will be using a satellite orbiting around the Earth from north to south, we are able to release these shooting stars from any location around the planet," it said.
The startup intends to sell its technology services to companies, governments or individuals for live shows, performances, city promotion activities and global sports events such as the Olympics and the World Cup.
The company is also hoping to contribute to aerospace research. "With our artificial shooting star creation technology, we are able to accurately monitor and collect data on the behavior of shooting stars and can infer from these findings the nature of organic shooting stars as well."
ALE's two satellites will start orbiting the Earth by February 2020. The first satellite will be launched on a rocket by Japan's space agency in 2019. The second will be launched in mid-2019 by a private-sector rocket, according to Japan Times.
Modi Government’s Fund Of Fund Scheme Loses Traction
The number of startups benefiting from Narendra Modi government's Rs 10,000 crore Fund of Fund Scheme fell in the year ended March.
58 startups received funding from the scheme in 2017-18 compared to 62 in the previous financial year, news agency PTI reported. So far in the current fiscal, 22 startups have been provided financial assistance under this scheme, Minister of State for Commerce and Industry CR Chaudhary said in a written reply to the Rajya Sabha.
The Rs 10,000-crore fund of funds for investment into startups through Alternate Investment Funds was one among the many incentives announced by the Modi government in 2016. Under the 'Start-up India Action Plan', startups were also promised a slew of benefits including Income Tax exemptions for three years, tax exemptions on capital gains and investments above fair market value, and an easier process to wind-up companies.
However, according to a 2017-survey of startups and entrepreneurs by LocalCircles, a community-based social networking platform, 80 percent of startups didn’t benefit in any way from the Startup India initiative.