By Ben Norton
India and UAE are on the hunt for unicorns. No, that’s not as ridiculous as it sounds. Unicorn is the term used in the venture capital industry to describe a startup company with a value of over $1 billion. By 2025 these two countries aim to have grown 10 start-ups into market-leading businesses through the new CEPA trade agreement.
How UAE And India Plan On Achieving Such Rapid Growth?
They are currently in the process of selecting 50 tech-enabled budding businesses that will be closely monitored over the next three years. Those that show great promise will be hand-picked to lead the way through what will become a thriving start-up corridor. Their thinking is that businesses that are built on the backbone of tech will be able to scale more rapidly than anyone else.
Of course, these businesses will need capital in order to achieve such rapid growth. Groups such as Indian Angel Network, Turbostart, FICCI LEAD and MCA management Consultants will all be major players contributing to the entrepreneurial funding. $150 Mn has already been set aside during talks on creating this corridor.
For more information on CEPA’s startup investments goals click here.
Why Are Governments Supporting The Unicorns?
Both nations involved in CEPA understand the importance of flourishing start-ups while aiming to achieve the massive financial goals placed on the agreement’s success. These 10 businesses are likely to inspire many more entrepreneurs to use the opportunities provided by open trade when driving new business growth.
All organisations involved in this ambitious concept have agreed that although the businesses selected should be tech-enabled, they should also be sourced from many different industries. From health care to financial services the companies will all offer services in different sectors in order to encourage investment from all angles.
For more information on the effects that the start-ups will have on industry click here.
What Does This Mean For Investors?
The corridor offers a unique opportunity to investors, in that the companies selected promise explosive growth with the support of government and exterior funding. One can assume that they will also be bolstered by expert advice and guidance on how to use the open trade to their greatest advantage. Very rarely does a secure investment offer such rapid and extended returns.
Furthermore, the unicorns are simply the inaugural opportunity. Once the corridor is established it will produce hundreds of prospering businesses in search of venture capital. There is no greater time than now to keep an eye on this source of start-up
We strongly suggest that you keep your finger on the pulse and get involved when you spot the magical one-horned business that’s galloping its way toward $1 billion.
For a more in-depth discussion click here.
