[This article is part of the series called Startup Hatch, about incubators and accelerators in the startup ecosystem]
The PSG College of Technology in Coimbatore runs a Science & Technology Entrepreneurial Park (PSG-STEP), a technology business incubator facility for over 30 startups. Dr. K. Suresh Kumar is the general manager of PSG-STEP, and supports startups in the areas of information technology, electronics and mechanical engineering. He also handles the Secretariat of Asia Pacific Incubation Network (APIN), an initiative supported by infoDev, World Bank & Department of Science & Technology, Government of India.
Suresh is certified as Business Incubaton Trainer by infoDev, The World Bank Group and a mentor in the National Entrepreneurship Network (NEN). He had participated in various international programs and workshops held in the US, Australia, China, Finland, Brazil, Malaysia and Thailand. Suresh holds a degree in mechanical engineering and a PhD in management. He joins us in this exclusive interview on the opportunities and challenges for startups and incubators in India.
YS: What was the founding vision of your incubator, and how is it supported?
PSG College of Technology was involved in promoting entrepreneurship in the region for more than three decades. The activities of the institute in promoting entrepreneurship are converted into a systematic approach by establishing the Entrepreneurship Development Cell, which has been started with the support from National Science & Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology, Government of India.
Based on the performance, in the year 1998, NSTEDB supported PSG College of Technology to establish PSG-STEP – the Technology Business Incubator to promote technology startups in the region.
PSG-STEP is spread over an area of more than 25,000 sq.ft to accommodate 31 startups, in the areas of IT, mechanical engineering, and electronics. PSG-STEP provides technical services that include R & D activities, product development, re-engineering, calibration and testing facilities, quality assurance and market research to the entrepreneurs. The entrepreneurs utilise the various Centers of Excellence of PSG College of Technology.
YS: What is the profile of the managers of your incubator?
PSG-STEP has been lead by a team of four members who have experience in industry and management. Two members of the team have more than a decade of experience in incubation and entrepreneurship promotion.
YS: What would you say are the Top Three opportunities and challenges for Indian startups?
The present industrial scenario and the emerging entrepreneurial ecosystem help the Indian startups to build knowledge based technology startups in electronics, biotech and ICT.
The key challenges to the startups are: access to low cost early stage funding, exposure to mentoring and access to mentors, and team-building.
The incubator provides seed funding to the startups, which is flexible, and in easy terms without affecting the equity structure of the organisation. The network established by the incubators helps the startups with easy access to mentors.
YS: What are the selection criteria for startups in your incubator?
PSG-STEP extends support to the technology startups, preferably a product company, which is less than two years in age. The business plan is reviewed by the team of experts and the company is selected on the basis of feedback on the techno-commercial aspects.
YS: What support and services do startups receive in your incubator?
PSG-STEP provides the incubation space to the startups and also shares the equipment, laboratory facilities, software and hardware to the startups for product development. The networks of PSG-STEP are utilised by the startups for mentoring and technical advice.
PSG-STEP extends early stage seed funding to the startups. Apart from the above support services, the incubatees utilise the common facilities like learning resources and other services of the institution for the benefit of their operations.
YS: What kinds of IP are being created by your startups?
The startups focus on building IP through patents and design rights. Our incubatees focus on building IP in vision system, wireless technologies, and so on.
YS: How would you differentiate your incubator from the other incubators in the field?
PSG-STEP incubator has a space more than 25,000 sq.ft to accommodate about 30 startups. PSG-STEP has created an incubation facility in the thrust areas of ICT, electronics and mechanical engineering. PSG-STEP had contributed to the capacity building of the business incubation as the Secretariat for the Asia Pacific Incubation Network (APIN).
YS: What would you define as success for your incubator?
Self-sustainability of the incubator, contribution to the entrepreneurial eco-system of the region, and internationalisation of the incubator
YS: How do you compare and contrast India’s incubators with that of other countries like US and China?
The entrepreneurial eco-system is more vibrant in US with enough space for networking, mentoring and access to capital. In India, the incubation movement has gathered momentum during the last two decades and is picking up with more public and private incubators being established during the last five years.
YS: How many companies did you start off with, and which ones do you have now?
PSG-STEP started with two companies in the year 1998 and 32 startups are operating from PSG-STEP. See Tables 1 and 2 for the current crop of companies and the previously graduated ones.
Table 1: Current incubatee companies
Name of the Company
Website
Name of the Promoter
Sector
1
Archstone Consulting Engineers
www.archstone.in
Ms Padmini Radhakrishnan
ICT
2
Cable Partner Call Solution India
www.carotechs.com
Mr Vinod Kumar S
ICT
3
Carolina Technology Solutions
www.carotechs.com
Mr Vivek Devas
ICT
4
Consolidated Cybernatics
www.consolidatedcybernaticsindia.com
Mr Rangaswami P R
ICT
5
Fed Labs
www.fedlabs.in
Mr Sojesh Somapalan
Electronics
6
G-Net Solutions Cbe
www.g-netsolutions.com
Mr Ramesh G
ICT
7
Green ECM Technologies
www.greenecmtech.com
Mr Sivaram P
ICT
8
Logic Genie SoftTech
Ms Chinmaya Priya Vettaikaran
ICT
9
Jaden Solutions
www.jadensolutions.in
Mr Xreus Michel Edison C
ICT
10
Kalycito Infotech
www.kalycito.com
Mr Bhagath Singh K
Electronics
11
Lexbit Technologies
www.lexbitinc.com
Mr Praveen A
IT
12
Meta Yage Ip Strategy Consulting
www.metayage.com
Mr Arjun Karthick Bala
IP
13
Mezoblanca Solutions (India)
www.mezoblanca.com
Mr Arun Kumar M
ICT
14
Panini Infotech
www.paniniinfotech.net
Ms Sudha S
ICT
15
Profitaire Solutions
Mr Mohit Parmanandka
ICT
16
Richmond Technologies
www.richmound.co.in
Mr Sampath Kumar N
ICT
17
Simgrosys Consulting Services
www.simgrosys.com
Mr Visvanathan K
Engineering
18
Sivatec Solutions
Mr Sadhasivam P
ICT
19
Unilogic Technologies
www.unilogic.in
Mr Senthil Kumar
Electronics
20
Vectra Form Engineering Services
www.vectraform.net
Mr Prabahar Annamalai
Engineering
21
Vestige Technoloies Pvt.Ltd
www.vestige-tech.com
Mr Rammohan G
Engineering
22
Vidvus Technology Solutions India
www.vidvus.com
Ms Srilatha
Engineering
23
Visinture Strategic Solutions (Cbe)
Mr Bhadrinaath C R
ICT
24
Webstars
www.webstarsnet.in
Mr Raja Renga Bashyam S
ICT
25
Aries Biomed Technology
www.ariesbiomed.com
Mr Pragadeeswaran
Biomedical Equipment
26
Vista Engineering Solutions
www.vistaes.com
Mr Saravanan
Engineering Services
27
Infinit Solutions
www.infiso.com
Mr Uday Kumar
ICT
28
Joule Foods
www.joulefoods.com
Dr P Sathyamoorthy
Food Processing
29
KSB Rotational Moulds Products
www.ksbrotationalmouldsproducts.com
Mr R Shivakkumar
Rota Mould Products
30
VenPep Soultions
www.venpep.com
Mr Shyam Vellumani
ICT
Table 2: Incubated Companies
Name of the Company
Name of the Promoter
Sector
1
Onspec-Legend www.onspec.com
Mr Ramachandran
VLSI design
2
US Software Solutions
Mr.S.Padmanaban
COM based business
3
Amoeba Telecom (acquired by isoftel)
Mr Venugopal
Telecom Software
4
Tech Info Softwares
Mr Radesh Shyam
VB based projects
5
Rnd Softech www.rndsoftech.com
Ms Deepika
Medical Transcription
6
Realsoft Cybersystems
Mr Shyam Kottari
Finance Package
7
Infosol Technologies www.infosoltechnologies.com
Mr Saravanan
Regional Auto portal
8
Cybersol
Mr Ramesh
Medical Transcription
9
Vectraform Engineering www.vectraform.com
Mr A Prabakaran
CAD / CAM
10
Manasaraovar Consulting
Mr R Ramanan
e-integration
11
Samson Technologies
Mr Sabu John
Medical Transcription
12
Lucid Technologies www.lucidtechsol.com
Mr Srinath
e-commerce Solutions
13
School 4 success.com
Mr Siva Subramanian
Personality Development Portal
14
APT Solutions (merged)
Mr Balasundaram
Java based Application
15
Bluecubes Softwares
Mr Thangamuthu
Internet Solutions
16
Taask Datascribe Infosys
Mr Suresh
Medical Transcription
17
Hotinfonet Software Labs
Mr A Riyad
Telecom Softwares
18
Media Wood
Mr C Goutham
Multimedia Applications
19
Sudarshan Softwares Exports www.sselindia.com
Mr S Thirunavukkarasu
Software Devpt. & Training
20
Rao Technologies
Mr B Vyasa Rao
ERP & Software development
21
Paramount Quality System
Ms Rajula Spurgeon
ERP for Plantation Industry
22
D M Data India
Mr S Kesavan
Public Safety Software
23
Simha Technologies
Mr Krishnakumar
Web Content Development
24
Rasquares Information Systems
Mr K Raamkumar
WAP Applications
25
Timesys India www.timesys.com
Mr Madan Sendil
Embedded System
26
B.E.S Technologies
Mr Tee Narayanswami
Data Zoning & Conversion
27
Best Infoways India Pvt Ltd
Mr N Vijayakkrishna
Call Center
28
Sapience Software India Pvt Ltd
Mr Suresh Menon
ERP, CRM & SCM
29
Elmaq Software Pvt Ltd
Mr Balaji
ERP for SMEs
30
Havilah Technologies
Mr. P J Vinod
ITES
31
Digital Dynamix
Mr. K.K. Shankar
Web Development
32
Edge Infotech & Consultancy Services
Mr. Raj Kumar
Software Development
33
Wisdom Infotech www.wisdominfotech.com
Mr. Raj Kamal
Internet Solutions
34
e-Brahma Technologies (acquired by CSS Group)
Mr Paramasivam
e – Commerce
35
Tamilnadu Computer Education & Organisation
Mr K Venkatesan
Software Training cum Development
36
Cosmos net
Mr Muralikumar
ISP – DSL, Franchisee
37
Mac Academy
Mr A Mohanraj
Multimedia Training and Application
38
Venus International
Mr. Suresh Babu
Software Devpt.
39
Premier Systems and Management
Mr. D. Ramkumar
Web Applications
40
Hykon Transcripts P Ltd
Medical Transcription
41
Mindocean Infosolutions
Mr. Venkatesan
42
Ambigro www.ambigro.com
Mr. Karthik
Textile Enterprise Applicatins
43
Comdus Solutions www.comdus.com
Mr N Rajendran
Internet based applications
44
Emerge Software Technology
Mr Jaffer Ali
ERP for engineering Industry
45
Vyosoft DG Technologies www.vyosoft.com
Mr Mohan Siddan
Software Development
46
Corrosion Management Services
Mr V Manikam
Corrosion database Management Software
47
Griam Tech Solutions
Mr Prem Kumar
Software Devpt.
48
Skava Systems www.skava.com
Ms. Sudha
Mobile Games
49
Nimbeon Inter Technologies www.nimbeon.com
Ms. Kavitha Sukumar
Design & Engineering Operations
50
Daffodils Multimedia
Mr. Sanmugaanand
Multimedia Devpt.
51
Next Gen Teknologies
Mr. Anand
Software Development
52
K-Logic TechnoSolutions www.klogicsoftware.com
Mr. A Kasi
Software Development
53
Vibgyor software & Exports
Mr. K C Krishnan
Software Development
54
Maxval IPwww.maxval.com
Dr. Bommi Bommannan
IP Management
55
Sednasoft Technologies
Mr. Thilak
Web applications
56
Weoutsource
Mr. Gandhinathan
Web applications
57
Linsys Technologies
Mr P Sundarrajan
Software Development
58
Clear Software P Ltd
Mr Akthar Ahmed
Software Development
59
Fornax System Pvt Ltd
Mr Rajasekar
Software Training cum Development
60
ACT Software (Cbe) www.amulya.com
Mr S Sathish
Web based applications
61
Konvertis Websolution
Mr. V Jaya Krishna
Web development
62
Techno Heitz Solutions
Mr R Ramkumar
Web Applications
63
Arthana Technologies
Mr. Arun
Web applications
64
Sujith Consultancy
Mr. K Jayaraman
Software Development
65
Prolinture Software India www.ibell.com
Mr. Nagarajan
PDM / PLM Software Development
66
ACT Infosolutions
Mr. V D Jayakanthan
Software Development
67
Duce Software
Ms K Savitha
Enterprise Applications
68
AKT BPOwww.aktbpo.com
Mr Daniel Victor
BPO Service
69
SNAP Software India Pvt Ltd
Mr. Sanjay
Software Development
70
CGS Systems PVT Ltd
Mr Rajagopal & Mr Mani
ERP for Knitting & Apparel Industry
71
Springlogic Technologies
Ms Dhanapriya
ERP for Knitting & Apparel Industry
72
Mascot esoft Technologies
Mr A Jayakumar
CAD / CAM
73
Global.com
Mr Reghu
Software Development
74
Projection Microsoft
Mr K S Muruganandam
ITES
75
Bioniik Innovations
Mr SP Balaji
Biotechnology
76
Infoaxiom (INDIA) www.infoaxiom.com
Mr Kumar Ramajayam
Software Development
77
VPA Direct www.vpadirect.com
Mr Vishnu Mahesh
78
Team Moplet www.moplet.com
Mr Norbu M Ashraf
Mobile Applications
79
Sovereign Infotech Pvt Ltd
Mr Balakrishnan
80
TechBits Technologies
Mr Peter
81
CRM 24 X 7
82
Anokka Systems
83
Alchemist Techno Labs Pvt Ltd
84
Globus Infosoft Pvt Ltd
85
Codesoft Solutions
Mr J Mathuram
Software Development
86
Loukyaa Technologies
Mr Arun Kumar
87
Megha Cloud Infotech
Mr K Jayaram
88
Lesan Technologies www.lesantech.com
Mr Vishnu
Software Development
89
Soft Info Technology www.hiristechnologies.com
Dinesh Babu B
90
Hiris Technologies
Gunasekar Duraisamy
Software Development
91
Altius Technologies www.altius-ecom.com
Vellayan Lakshmanan
E-Commerce Solutions
92
Ocenture IDO www.ocenture.com
Subash G
Private label product development
93
Set Infotech www.setinfotech.com
Sethu S
e-books and m-apps
94
Iserve Consultancy www.iserveconsultancy.com
P Krishnakumar
95
Minveli Infotech www.minveli.in
Dhanapal P
ERP
97
Lesan Technologies www.lesantech.com
Vishnu Vardhan L
Application Development
98
Candrila Information Systems www.candrila.com
Mr Raja Rajan Chellappa
Software Development
99
Compass Technology Solutions www.compasstechnologysolutions.com
Mr Balaji M
Software Development
YS: What are your plans for the coming 3-5 years with respect to new startups?
PSG-STEP is planning to enhance the support extended to the technology startups by providing mentorship capital and to increase the IP portfolio of the startups and the institution.
YS: What are your recommendations to the startups and entrepreneurs in our audience?
Startups should leverage the support system available in the eco-system to minimise their risk and to maximise the success of the venture.
[Follow YourStory's research director Madanmohan Rao on Twitter http://twitter.com/MadanRao]