The biggest challenge with a startup-focused model is that this market is small as compared to the larger world of SMEs and established companies. As per startup industry tracker Tracxn, the number of startups founded in 2016 dropped to 7,218 from 12,056 in the year before. The total number of technology startups in the country stands at 29,739.
> Companies want small teams on specific projects to gain from collaborative culture at co-working spaces.
> B2B companies want to sit closer to potential clients in startups and SMEs.
> Co-working spaces help companies save 15-25% on real estate and office maintenance costs.
> Traditional companies prefer young teams working on technology-oriented products and services to be working in vibrant and high-energy co-working spaces.
> Fast growing companies looking to set up satellite offices in smaller cities see this as a cost-efficient option.