In terms of finances, the dollar goes a long mile in India and that is a plus. Perhaps a YC startup will probably run out of India in the future, especially because web startups are allowed 100% foreign ownership and foreign direct investment in India.
I thought it might be interesting to start a google group for all Indians who read Ycombinator and similar stuff and maybe want do a startup - http://groups.google.com/group/TechStartups-India Join in, lets find out how many Indians are around and lets chat/meet up :)
Now it is possible that there is a bit of a chicken and egg problem here. But, imho, it is not enough to state baldly that there is significant entrepreneurial and IT activity happening here. IT as in "outsourcing" or "India Development Centres" sure. But the level of talent or software startups available is nowhere near what Silicon Valley offers. The few startups I have seen here in Bangalore are all a bit flaky. Examples :- Guruji.com claims to do "India Specific Search" better than Google. Their search engine is terrible . Minglebox attempts to create an Orkut clone (there was a scandal recently about some incestous connections between the VC and a founder of the company and suspicions about the objectivity of the deal and so on).
The only half decent software startup I know in India is Zoho and it remains to be seen if they can avoid being crushed by the Google Office juggernaut.
Now as to talent. Name 10 Indians who have significantly contributed to Open Source software and are based in India. Any significant languages, frameworks etc that came out of India?
I am not saying there aren't extremely bright people or developers in India . Given the size of the population it is impossible not to have bright people . But there does seem to be a distinct lack of entrepreneurial ability and the people who do seem to be very good developers don't want to take the risks of running their own company. Which is what Google Sacca was talking about. The people who do want to run their own companies are not correlated with high levels of programming skill, who prefer to emigrate to the USA.
Having worked 10 years in Bangalore, I assert that YC will find hypothetical Indian operations massively unsuccessful. This may change in the future. But for now, YC should focus on the US.
And before anyone accuses me of "racism "or something , I am Indian. I just try not to be blinkered.
In the US specific areas/cities have historically done better in somethings - especially technology. This may never come to pass in India because of the presence of very different dynamics.
Also, you assume that India already has a world of startups - it does not, it merely has an untapped potential. I will not answer your question about programming languages that have come out of India, or Open Source intiatives - I would merely advise you to count how many Indians have contributed to similar goals in Silicon Valley, you could start back from the 1980s - I think oppurtunity called them to the US and they wisely followed. Also please check similar sources for linux, even the ubuntu flavor has Indians contributing. IMO in the future resident Indians will contribute to such projects, historically some non-resident Indians have. This is so because today's infrastructre allows us. (contd..)
Yeow I hope not! INS's visa rules are a legal and procedural snake pit, with plenty of people abusing and bending the rules to get a chance to come to the USA. IMHO YC should keep to doing what it knows best . It is bad situation but not YC's problem to solve.
I would imagine that YC has (a LOT) more work than it can handle. Why would YC want to add to it by expanding to India (or anywhere else. If India why not China? If China ... )
sabhishek - You should apply to a YC funding cycle. Deal with the visa issues later! (but not too late)
Thanks for the comment.
Thanks a lot for responding.
If so, not quite. Moving to a different town to start a startup is just a test of commitment. Moving to a different country, though, dilutes the test with a bunch of bureaucratic stuff.
Personally, I think angel funding is not very relevant in India because the startup costs are extremely low. Also, VCs are not as prevalent as in the US (that seems to be changing with proto.in etc) so the VC contacts that YCombinator provides might not apply either. But the advice and ideas of someone like Paul Graham would do wonders, but I can't think of a resident Indian in that place.
I am not a lawyer but I imagine if the team can get a tourist visa for three months, their new company was incorporated off-shore, in Ireland or the British Virgin Islands, and paid them in their home countries in advance for three months work that they could live in the Bay Area and participate fully with the added bonus of lower corporate taxes.
Or everyone could go to jail.
We rely too much on the generosity of America.
The IT boom in India has been largely, IMHO, as a result of American projects rolling in.
Why cant we generate our own?
All the Valley VCs from India (they are too well known for me to mention) should be ashamed of themselves. The top VC in the world is Indian.
that is why Bill Gates gives $100M and plenty of his time and energy to eradicate diseases in India's children. LN Mittal who is the 3rd or 4th richest man in the world, gives how much to his home country? (no reports of his giving).
Selfishness. that is the bane of India. That is why you have beggars on the streets alongside Mercedes Benzes.
And yet another unpopular post from me. :)
Anyway, the main reason as already stated is that such people land in US rather than in India to become rich!
And even if someone builds such product in India, US is the main market to sell it. Selling the product remotely is not that easy!