Startups may be a dominant thread in the finance industry, however not all of these companies are receiving the same financial support from the investor community. In India, agriculture startups find it difficult to get financial backup from angels and venture capitalists, a major difference than the IT startups which are on the receiving end of much more assistance.
The National Academy of Agricultural Research Management (NAARM) initiated a-IDEA, to assist and further develop agricultural startups. They also make sure to network these startups, and connect them to potential investors. However, even with the support of NAARM, these startups still fail to adequately get the financial assistance they need.
According to CS Jadhav, an incubatee and agricultural entrepreneur at a-IDEA, these funds are needed to continue their food operations, but because of the long gestation period, investors are hesitant to invest, even though they may be confident of a certain project’s success.
According to Dr K. Srinivas, NAARM Principal Scientist, investors have said that IT startups provide them returns in manifolds. They also expect the same from the agri-startups, but it’s not possible to get similar results in agri-startups, which is why they are having difficulty getting the capital they require.
Although agri-startups exhibit low returns, they are on the same page with the IT startups with regards to the risk factor. Moreover, agricultural startups have great potential for growth in the upcoming years, which is why a-IDEA, along with other incubators, want to center on gaining investors in an effort to increase agricultural possibilities.