The Indian tech industry is growing at an incredible pace:
Indian startups have raised a record $10.46 billion in the first half of 2021, up from $4 billion during the same period last year
Salaries are also increasing rapidly, from an average of $40,000 to $70,000, and even $150,000 for some top engineers.
Why is Indian tech growing so fast? I think several changes in the industry in recent years are weighing in its favor:
- Major investors went remote due to COVID, and have largely stayed that way even as the pandemic recedes in the US. This means they can meet an Indian entrepreneur just as easily as one across the street in San Francisco. This democratization is great for the entire industry.
- The venture industry as a whole is on fire, with both exits and valuations in the US reaching staggering levels. This gives venture firms more incentive to look outside the US for better deals, and more cash with which to do so.
- It’s easier to incorporate in the US than ever. I recently invested in a startup that lets companies incorporate, issue stock options, and handle compliance cheaper and easier than ever before. Many of their customers are outside the US, but incorporate here to make fundraising from American investors easy. (More on this awesome company soon!)
- India is stacked with tech talent. Anyone who has worked at a software company in the US can tell you that Indian-Americans are a huge part of the industry, and they have incredible skills.
- China is killing its tech industry. Heavy-handed regulation, massive fines, and even disappearances of tech entrepreneurs is having a chilling effect, and the number of Chinese startups breaking out is way down. India competes with China for venture funds, and right now, it’s looking like the better bet.
New regulations that may require companies to expose users and break encryption are the biggest risk I see on the horizon for Indian tech. But with a deep talent pool and ample funding, India’s is a startup scene to watch.
More on technology:
INDIA IS SOAKING UP VENTURE CAPITAL LIKE A SPONGE
CHINA IS KILLING ITS TECH INDUSTRY
7 COMPANIES HAD 3 MINUTES EACH TO PITCH US. THIS IS WHAT HAPPENED.
Photo: “India – Enroute Tso Moriri, Ladakh” by sandeepachetan.com is licensed under CC BY-NC-ND 2.0
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