Way tooo early to say that !!! Read this interesting article with a catchy title at mercury news “Engineers in India venturing into valley-like start-up”. The article highlights that three youngsters quitting their job to open a valley kind of startup and goes on to suggest that how this is a datapoint of a larger trend – silicon valley is going to be replicated in bangalore.
Indian economy is booming and sensex is reaching new heights which is luring many investors to India.Also Bangalore figures in some way or the other in almost every software biggie and startup in the valley or other parts. These things favour bangalore in being an ideal germination ground for valley kind of culture but one of the biggest challenge which until addressed bangalore becoming silicon valley will not happen is the availability of risk capital.
No doubt that there so many investors coming into India but they are late stage investors , there are none or very few early/seed stage investmentors in India.
I met these two folks from PicSquare in August 05 in a TiE bangalore mentoring session which was chaired by Kanwal Rekhi (I will write a post some time later about him , the meeting and also how I am great admirer of his like so many others) and it is since then they are trying to raise money. Last I met them was a week ago and they are still seeeking some investors to fund but nonetheless their customer base is growing. The oppurtunity that they are pursuing is based on a clear need that there exists in the maret and and is relatively less risky but huge potential/oppurtunity. I am yet to see any VC come forward to fund it. All the funding that I get to see is late stage investment.
What would make bangalore a real valley is when risk capital to fund above and even more radical ideas is available. But that I guess is not going to happen immediately