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PreSeed Accelerator is a accelerator program focuses on marketplace assistance.

PreSeed Accelerator

Galaxy gives founders in India a $1M fund to start investing. If they make great investments, they’re eligible for a second fund of $2M. Each founder starts with a $1M fund, with a first tranche of $500K. After investing the first tranche, you will receive a second tranche of $500K.

Galaxy

![high-rise buildings during daytime](https://images.unsplash.com/photo-1573132223210-d65883b944aa?ixlib=rb-4.0.3&ixid=M3wxMjA3fDB8MHxzZWFyY2h8OHx8bXVtYmFpfGVufDB8fDB8fHww&w=1000&q=80)
 India is a country of great potential, considering its population size, open global economy, and cost-effectiveness in business operations. The country has established itself as a world leader in technology services and has seen a boom in unicorns over the past few years. India’s overall startup growth is truly impressive and is driven primarily by its large domestic market and massive IT industry. Its startup ecosystems are an engine of economic growth and have the potential to significantly improve productivity and position India as a global innovation leader. 

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 Members of the Indian diaspora hold CEO positions in leading global tech companies such as Alphabet, Adobe, and Microsoft. However, this also highlights the cost of brain drain, as many of India’s most talented individuals seek opportunities abroad. Limited access to high-paying jobs and infrastructure challenges contribute to this trend. In response, the government has recognized the economic importance of its human capital and is promoting university entrepreneurship through initiatives like incubation centers, startup competitions, private-sector partnerships, and diversity-focused efforts. 

 Beyond talent retention, India continues to face challenges with its digital infrastructure. Internet speeds lag behind those in developed nations, and power outages are still common. To address this, the Indian government has begun taking steps to improve foundational infrastructure and strengthen the startup ecosystem. The 2024 Union Budget includes measures such as financial support, interest-free loans, simplified regulations, tax breaks, and incentives for R&D to further accelerate ecosystem development. 

 While many successful Indian startups focus on the country’s vast internal market, moving forward, startups will need to expand their reach into regional and global markets in order for India to become a true global tech hub. Encouragingly, companies such as Zomato and Zoho have demonstrated international potential and laid the groundwork for this shift. 

 Given India’s large, fast-growing, and young population, an emphasis on digitalization is appropriate—even if global scale has not yet been fully achieved. The next logical step will be to increase focus on regional and international market expansion. 

 In recent years, India’s startup ecosystem has shifted its focus from ecommerce to digital solutions and fintech, moving beyond earlier unicorns like Flipkart and BigBasket. The United States remains the largest source of FDI for Indian startups, with most investment flowing into fintech ventures developing new banking models. At the same time, the Indian government is prioritizing AI development through the IndiaAI Mission—a multi-billion dollar initiative to boost computing power, expand AI education, fund startups, and build advanced AI models. 

 The ecosystem is also supported by multiple organizations. The Alliance of Digital India Foundation, along with flagship initiatives like Startup India and Make in India, reflects the public sector’s commitment to enabling a strong regulatory and funding environment for startups. Additionally, efforts have been made to simplify the business landscape. A key example is the recent abolition of the angel investor tax, which had previously imposed financial burdens on startups receiving early-stage investments. 

 At the regional level, organizations like Kerala Startup Mission and Startup Karnataka are excellent examples of how local initiatives can drive growth. Kerala Startup Mission supports startups with seed funding, incubation programs, and innovation challenges, while Startup Karnataka offers grants, tax incentives, and innovation hubs in Bangalore. 

 However, concerns remain around new and inconsistent policies. A recent reintroduction of an angel investor tax has raised alarm among founders and investors, as it risks deterring investment and driving entrepreneurs away. Such policy fluctuations undermine otherwise strong efforts to improve the ease of doing business. 

 Despite these challenges, India continues to benefit from its global ties, strategic geography, and most importantly, its young, educated, English-speaking population. These core advantages give India immense long-term potential to grow and take on a larger role in the global startup ecosystem.

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India

South Asia

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