Most of the entrepreneurs complain about the high operating cost of establishing a start-up in cities like Delhi, Mumbai, and Bengaluru. Rajasthan seems to be the best in providing a high-leveraging potential. Rajasthan State Government policies, with low expenses, are promoting the start-up ecosystem.
iStart Rajasthan is a program by the Department of Information Technology and Communication to encourage entrepreneurs, create jobs, and facilitate investment in the state.
With over 1,600 registered startups, according to iStart, Rajasthan has taken several crucial steps in startup policy implementation, funding, and more.
It is an integrated platform for startups, investors, incubators, accelerators, and mentors.
Efforts of Rajasthan have been recognized as it is “Top Performer” in the State Startup Ranking 2018 conducted by the Department of Industrial Policy and Promotion (DIPP), Government of India.
The state government has excelled in ‘Startup Policy & Implementation,’ ‘Seed Funding Support,’ ‘Funding Support – Angel and Venture,’ ‘Incubation Support,’ ‘Simplified Regulations,’ and ‘Awareness and Outreach’ as compared to the national average.
Investors have an interest in only selected sectors and a lack of mentorship for new entrepreneurs along with the scarcity of funding are the key challenges for startups.
With the help of iStart, only 85 startups have received seed funding to date.
Most of the investors have their focus on major startup hubs such as Pune, Bangalore because of that only a few startups emerge from Jaipur.
Even the other city of Rajasthan doesn’t get attention as The Pink City does.
Gain for Incubators
Rajasthan has supported incubators under iStart Nest incubators in Jaipur, Udaipur and Kota by providing the startup the perfect environment to grow like financial support, setting an infrastructure and hiring resources.
In November 2017, GoR announced the launch of iStart, and within 4 months, more than 700 startups registered with iStart, and after a few weeks, more than 70 startups got selected for the iStart incubation program. In August 2018, the largest incubation facilities center called Bhamashah Techno Hub with 1.5 lakh sq. Ft. in Jaipur was launched to support startups in Rajasthan.