Lack of focus on innovation among Sri Lankan start-ups
While the start-up ecosystem is expanding widely in Sri Lanka, the number of companies creating innovative products is very minimal. The start-up culture should be a scenario in which a brand new product emerges instead of the kind of amazon, facebook or e-bay of Sri Lanka, says Jeevan Gnanam, Director and CEO of Orion City.
Mr. Gnanam told this to the Business Times on the sidelines of the launch of Asian Business Angel Forum (ABAF) and Venture Engine 2017 held at the Cinnamon Lakeside in Colombo on Wednesday. He said, “Start-ups need to provide solutions for Sri Lankan problems and then take it out to the region.” This is the kind of difference Sri Lankans can gear up in the start-up culture, he added.
He also mentioned that he has personally invested in about 20 start-up companies in Sri Lanka with some of them collapsing because they couldn’t survive, their financial projections weren’t great and they were not able to execute on time.Start-up companies should be careful with what they select and look at ways and means of how they can grow. There is so much keenness and eagerness among millennials on start-up companies that makes people think ‘hey how do I make a difference among other existing businesses?’ It is good thinking but not all ideas are fundable, noted Mr. Gnanam.
ABAF Chairman, Jordan Green stated at the launch event that ABAF is the ninth forum and the first one to take place in Sri Lanka. “ABAF is the largest gathering in Asia that will recognize the Lankan angels and their ideas in Sri Lanka bringing the best and brightest business venture together. The beauty of angel investment is that it drives entrepreneurship, jobs and opportunities,” he added.
The forum will bring about the market capital for new and upcoming entrepreneurs, pointed out Dumith Fernando, Chairman of Lankan Angel Network (LAN). He said, “LAN has invested in more than 23 start-ups in Sri Lanka with Rs. 2 billion earnings. The forum will bring together more than 200 potential investors at the ABAF investor conference. We need to regionalise, provide access to start-ups and learn every other country’s ecosystem. The forum will also put Sri Lanka’s start-up ecosystem on the world map, added Mr. Fernando.
Prajeeth Balasubramaiam of BOV Capital said that the involvement of BOV Capital is to empower entrepreneurs and to work with Sri Lanka’s member community to take businesses to the next level. There are lots of shared services and access to customers regionally through ABAF, he stated while adding that Rs. 2 billion was invested on start-ups last year.
On the Venture Engine 2017 submission requirements he stated that any busines with a good knowledge and plan, good financial forecast to the region and the willingness to take risks can apply. The closing date for the competition will be August 9 and the final results will be out on October 11 in line with the ABAF on October 12, he added.