Startup Roundup March 2, 2016

Women-Founded Startups in New York City Are Increasing – WSJ

When Abigail Edgecliffe-Johnson goes to meet with male investors, they often compliment her business and offer to mentor her. But they don’t offer to invest.

“The word on the street is men get funded on potential and women get funded on progress,” said Ms. Edgecliffe-Johnson, 39 years old, founder of RaceYa, a startup that makes educational toy cars. “There’s a problem with that because it’s very hard to get progress without money.” 

Budget 2016: Startups, here’s your ticket to a tax holiday – The Economic Times

The FM has laid out measures to boost the burgeoning startup ecosystem. A proposal for tax exemption on profits, one-day registration of companies and exemption of capital gains tax on startup investments are the key notifications.

“I propose to assist their propagation through 100% depropagation through 100% deduction of profits for three out of five years for startups set up during April 2016 to March 2019. MAT (minimum alternate tax) will apply in such cases. 

India’s startups feel stood up by Arun Jaitley – Quartz

By 11 am on Feb. 29, several entrepreneurs and investors in Bengaluru—India’s Silicon Valley—had shelved all their work to sit before their television sets.
Some entrepreneurs stayed at home; some watched with colleagues at work. Others, like eight entrepreneurs and investors from iSPIRT, a software industry think tank, formed a WhatsApp group to discuss the details in real-time.
India’s finance minister Arun Jaitley was presenting his annual budget speech for fiscal 2017.
Expectations were obviously running high. Prior to prime minister Narendra Modi’s, no other government had engaged with India’s startup community as much. 

What Startup Accelerators Really Do

The well-advertised boom in startups and venture capital in recent years has coincided with the emergence of new players in startup ecosystems. One of these, startup accelerators, has received a great deal of attention but also little scrutiny. Moreover, they are commonly misunderstood or mistakenly lumped in with other institutions supporting early-stage startups, such as incubators, angel investors, and early-stage venture capitalists.

In a recent analysis published by the Brookings Institution, I tackle some of the confusion around startup accelerators by laying out a clearer picture of what they do, and how they differ from other early-stage institutions. I also provide a review of the research literature on the effectiveness of accelerators to achieve their stated aims, some best practices for accelerator programs, and some figures on the size, scope, and impact of these organizations in the United States. 

Union Budget 2016: Start-up industry rues lack of tax incentives – The Hindu

The start-up industry has provided a mixed response to Finance Minister Arun Jaitley’s budget.

Top tech entrepreneurs and industry experts said the budget has addressed few issues including ‘ease of doing business’ in India. However, they are also disappointed that taxation norms for software companies were not relaxed.

“I am glad that the government clearly recognizes that start-ups can be powerful problem solvers for the myriad issues facing the country and in turn generate employment as well,” said Mohandas Pai, chairman, Aarin Capital and a top angel investor. He said the government’s decision to allow for 100 per cent deduction of profits for three out of five years between April 2016 and March 2019 is certainly “a welcome step that will boost start-ups.” 

Social Startups Put Human Touch Back in Tech

Social networks are a big part of our lives, but opinions diverge when it comes to how effective they are in fostering interpersonal relationships. A few tech startups, however, have devised new ways to help us improve our face-to-face-communications.

At the recent Social Media Week conference in New York City, tech executives took to the stage to show off their latest innovations, many of which were less about the technologies themselves and more about the humans they were designed to connect. 

Rocketspace San Francisco Becomes New Landing Pad For Australian Startups – Forbes

Australia’s National Innovation and Science Agenda is one of the country’s major strategies to reinvigorate economic growth for the future. With the mining boom busted; technology, science and entrepreneurship is being touted as the saviour for Australia’s high quality of life.

Over four years, A$1.1 Billion will be directed into a set of initiatives. This is a serious commitment that comes at a serious juncture. The Reserve Bank of Australia is rightfully worried about China, its biggest trading partner which is undergoing depressed activity in the construction and industrial sectors. Goldman Sachs projects GDP growth to be 2% for 2016. 

How Elio Became a Billion-Dollar Startup in Two Days |

Well, that was fast.

Elio Motors, the upstart car company that went public using an update to fundraising rules from the Jumpstart Our Business Startups (JOBS) Act, took exactly two trading days to achieve a value of more than a billion dollars.

The jump in the company’s market cap is particularly noteworthy given how many highly valued private companies have seen their private share prices knocked down in recent months, and that the IPO market generally has been quiet in 2016. Elio went public over the summer, raising $17 million from 6,600 unaccredited investors, using a crowdfunding platform called StartEngine. (An unaccredited investor has a net worth of less than $1 million, or an annual income less than $200,000.) 

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