Today, India is the world's third-largest startup ecosystem, witnessing a 49% compound annual growth rate in startup investment from 2014 to 2021. The collaborative effort of all ecosystem players, along with effective government backing and supportive corporate connections, contributed to its exponential growth. Amongst these, an understated crucial element is Angel Investors in India.
As high-net-worth individuals who invest in startups at the earliest stages, oftentimes they are the first believers, the first backers, and the first supporters of many startups and unicorns we know today. That is to say, angel investors are true 'angels' who aid startups at their crucial beginnings. In India, they are becoming increasingly common in the scene - now home to a community of over 26,500 angel investors.
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Angel investors (also referred to as private or seed investors) are high-net-worth individuals who use their own funds to finance startups at their earliest stages in exchange for equity. Typically, they appear after the first round of investment a business receives, usually from the founders, friends, or relatives of the founders; before the business requires a larger investment from a venture capital firm. They are an essential element of the system since they are the ones who make an early bet and invest in businesses that may or may not have a promising future. Oftentimes, they aid startups in taking their first steps off the ground and may offer continuous support through the challenging early phases.
To qualify as an eligible angel investor in India, one needs to meet the list of eligibility criteria for angel investors set out by The Securities and Exchange Board of India (SEBI). It concerns the minimum net tangible assets, investment experience, entrepreneurial experience, management experience, body corporate, and other relevant requirements. An angel investor may operate on their own or join Angel Investment Networks or Angel Syndicates, a group of angels who evaluate deals as an organization and may pool their funds together to collectively invest in startups.
Why Should You Raise Funds with Angel Investors?
The main advantage of angel investments is their better conditions and less risky terms than traditional loan financing. Angel investors adopt a long-term perspective for the firm's potential returns and thus are more interested in supporting enterprises during their initial steps. More often than not, they add more value aside from capital, acting as sounding boards for founders, advising entrepreneurs in decision-making, and connecting them with partners in the ecosystem.
This initial investment a startup receives may be the determinant of a venture's survival, coming at the most difficult stage of the founder's career who may have never raised any capital before. Their contribution is essential for businesses during the critical stages of expansion when the initial funding runs out and before venture investors arrive. It extends beyond investment, helping the next generation of founders to preserve the spirit of entrepreneurship. On that note, angel funding in India has risen significantly in recent years, touching a record level in 2021 with ₹746 crore or approximately US $91.5 million in seed funding deals alone. As such, the opportunity is ripe to secure capital from angel investors.
How Can You Meet Angel Investors in India?
There are several avenues to locate potential investors. You may meet potential angel investors through entrepreneurship-related events, startup meetings or forums, social media (LinkedIn), or even through your personal and professional network. If you contact an investor on the recommendation of another person, they are more likely to be receptive of your proposal. Otherwise, you can leverage angel investment networks to expand your reach to multiple angel investors at once. As individual angels may be hard to come by, these are the best places to find and network with qualified and high-quality investors.
In general, the procedure to join angel networks involves applying to deliver a pitch. Entrepreneurs need to send a business proposal and explain their businesses at a glance, at which a select few are given some time to present their business before being invited to an interview. In such cases, angels may invest individually or as a group, and you may or may not personally reach out to individual members of the network.
As a word of advice, be on the lookout for angel investors who are within your niche as they are more likely to be interested in specific industries they are experts in or companies based out of certain locations. If you're approaching specific funders, make sure to do your research properly. Look up their past investments or projects to see if they are within the same areas as yours to maximize your chances of setting your foot in the door.
Angel Investment Networks in India
Below is a list of angel investment groups and networks in India. All quoted investment ranges are in US Dollars unless otherwise stated.
Stage: Seed
Investment Value: Not disclosed
Focus: Sector Agnostic
Year of Inception: 2013
Notable Portfolio: Innov8, Sugar Cosmetics, Yulu, Bobble, Little Black Book
Based in India but global in operations, LetsVenture connects startups to a large community of accredited and authentic investors worldwide. To date, there are 33,609 startups registered and 17,394 investors in the platform, making it India's largest angel investment network and private market ecosystem. Any startup at any stage (ideation, POC/Beta, revenue) can create a profile in their platform as there are no particular eligibility criteria, making fundraising accessible for founders. LetsVenture's Founders First initiative is also designed to provide founders with actionable information, coaching, and assistance to help them grow and scale their businesses.
Stage: Seed
Investment Value: $100,000 - $350,000
Focus: Sector Agnostic
Year of Inception: 2018
Notable Portfolio: Open Bank, BharatPe, DealShare, Nap Chief, Chingari
Headquartered in Silicon Valley, AngelList is a renowned platform that facilitates seed financing for startups through angel investors. In 2018, they entered the Indian market by launching the Syndicates platform, a deal syndication platform that allows angel investors to invest in Indian startups along with other accredited angels. Their structure of pooling angel capital into a single cap-table cheque provides multiple benefits to startups, such as a clean cap-table, faster closures, no angel tax, and a single point of contact. Beyond funding, their AngelList Talent platform is also a valuable recruitment platform where founders can hire the best talent for their startups.
Stage: Seed
Investment Value: Not disclosed
Focus: FinTech, DeepTech, Women Entrepreneur, Rural Entrepreneur, Social Impact, Community Project, Logistics, Packaging
Year of Inception: 2021
Notable Portfolio: -
Recently established in 2021, InnoPitch is a startup funding platform that also serves as a community to pitch your ideas and find like-minded backers who would be interested in investing and/or promoting your brand. With impact in mind, they focus on sectors that will benefit the masses and connect startups to angel investors who will not only provide funding but share their knowledge and experience. Since it is fairly new, there are not as many notable projects listed yet on their website, but it is worth looking into if you're still early on in your fundraising journey.
Stage: Seed
Investment Value: ~ $1 million
Focus: Agriculture, E-Commerce, Education, Financial Services, Gaming, Healthcare, Hospitality, Information Technology, Internet, Lifestyle, Manufacturing, Mobile, Retail, Semiconductor, Services, Social-Impact
Year of Inception: 2006
Notable Portfolio: Wow! Momo, Box8, Fab Alley, PMaps
Indian Angel Network is undoubtedly the leading angel investor network in India with over 470 investors hailing from 11 countries. As a SEBI-registered early-stage fund, they have raised a total of INR 10.5 billion across 3 funds and have invested in upwards of 130 startups. They invest a minimum of USD 30,000 up to USD 1 million, exiting over a 3 to 5-year period through a strategic sale. The Network strives to add value by facilitating money, mentoring, and market access - providing startups with not only capital but also time and access to their extensive networks.
Stage: Seed
Investment Value: Not disclosed
Focus: Sector Agnostic
Year of Inception: 2006
Notable Portfolio: Purplle, Myntra, Fitpass, Snackible
With over 700 investors spread across 60 countries, Mumbai Angels have an unparalleled network of investors to connect with. Coming from diverse backgrounds, they are experts within their own domains; providing portfolio companies with knowledge and networks to leverage for their growth. To support founders further, Mumbai Angels also feature a valuable community called the MA Academy, where founders can access learning opportunities from industry professionals.
Stage: Seed
Investment Value: ~ $1 million
Focus: Sector Agnostic
Year of Inception: 2012
Notable Portfolio: Health Sutra, Thrillophilia, Evibe, Innovaptive
Based out of Hyderabad, India, the Hyderabad Angels source investment opportunities from within and outside of the Indian startup ecosystem, such as from the US, UK, Singapore, and the UAE. Their investors are comprised of top venture capitalists, entrepreneurs, and executives who actively engage with investee firms and offer them valuable inputs in various areas of business. They are interested in adding both tangible and intangible values to portfolio companies, establishing a win-win collaboration between investors and entrepreneurs. To date, they have amassed a portfolio of over 35 businesses, over 10 exits, and multiple follow-on roundings.
Stage: Seed
Investment Value: $10,000 - $250,000
Focus: Sector Agnostic
Year of Inception: 2015
Notable Portfolio: Inc42, Biryani by Kilo, Paymart India, The Gourmet Jar
"Let's build your success together!" is the invitation that Chandigarh Angels Network extends to founders with the next big idea. As a community of seasoned entrepreneurs turned investors, the members are equipped with the experience and expertise to fulfill such promises. Beyond capital, they offer bespoke mentoring, a professional network, and incubator space to assist businesses in their validation processes. Since their establishment in 2015, they have onboarded over 65 members and mentored over 250 startups, of which 35 have successfully gained funding.
Stage: Seed
Investment Value: Not disclosed
Focus: EdTech, FinTech, Consumer Brands, SaaS, HealthTech, Deep Tech
Year of Inception: 2019
Notable Portfolio: Fello, Tagz, Rezo.ai, Glamyo Health
Founded in 2019, Dexter Angels is among one of the newest angel investment syndicates in India. Despite their young age, they have collected 22 startups within their portfolio, all of which serve key focus sectors in India. Digital infrastructure and technological inclusion are the main driving force behind their investment decisions. As part of their portfolio company, their support extends beyond investment, acting as trusted partners, sounding boards, and consultants to entrepreneurs when they need assistance.
Stage: Seed
Investment Value: ~ $300,000
Focus: Technology
Year of Inception: 2015
Notable Portfolio: InstaSafe, PayTunes, Aisle, Codemojo
Operating out of two large cities, Delhi and Mumbai, CIO Angel Network invest specifically in technology and technology-enabled ventures in India. Aside from access to quality angel investors, CIO Angel Network provides access to its members of expert technology professionals that can offer valuable guidance and advice to entrepreneurs in their portfolio. The value they bring to the table is beyond funding, but also technical skills, resources, and opportunities to form relationships and potential business opportunities.
The Chennai Angels
Stage: Seed
Investment Value: $60,000 - $350,000
Focus: Agritech & Sustainability, Electric Vehicles, Deep Science & Technology, HealthTech, FinTech, D2C, Web 3.0.
Year of Inception: 2007
Notable Portfolio: BetaOut, Cloudcherry, Ketto, GoBumpr, Get My Parking
The Chennai Angels are one of India's premier investment networks, with a membership of over 120 active individuals, institutional, and corporate angel investors. Coming from multiple backgrounds, the members of The Chennai Angels bring with them a wealth of experience, skill, and financial resources to offer startups. With over 80 companies in its portfolio, its diverse investments reflect the range of its members' interests beyond a narrow tech concentration.
Stage: Seed
Investment Value: $60,000 - $180,000
Focus: Sector Agnostic
Year of Inception: 2014
Notable Portfolio: SuprDaily, ShopKirana, HelloVerify, The Indus Valley
Lead Angels is a platform where startups can present their businesses and get funding, coaching, and contacts at every stage of growth. Aside from investments, startups can enjoy full-stack financial services for compliance and governance requirements. Since its inception in 2014, the network has swiftly expanded and now boasts over 200 members from India, the Middle East, Europe, and North America.
Stage: Seed
Investment Value: $50,000 - $700,000
Focus: Sector Agnostic
Year of Inception: 2011
Notable Portfolio: Exotel, GreyOrange, eGMAT, Gigstart
BITS Spark was founded in 2011 by an alumni organization of BITS Pilani, with the intention to democratize access to capital, counsel, and co-builders for BITSians. Ever since, they have grown to a member of over 200 investors, assisting early founders with financing and mentorship support. The only requirement is that the startup must have at least one BITSian co-founder, be it a current and/or graduated student of the university.
Stage: Seed
Investment Value: Not disclosed
Focus: Sector Agnostic
Year of Inception: 2017
Notable Portfolio: Onn Bikes, Zophop, Suntelematics, Instoried
JITO Angel Network is a subsidiary of JIIF, recognized as one of the fastest-growing angel networks and incubation centers in India. It is wholly owned by The Jain International Trade Organisation (JITO), a global organization of businesspeople, industrialists, and professionals dedicated to promoting socioeconomic empowerment and ethical business practices. With their unparalleled network, they leverage their relationships to assist portfolio companies in forming strong businesses and gaining a substantial market share in their respective industries.
Stage: Seed
Investment Value: $200,000 - $2 million
Focus: Sector Agnostic
Year of Inception: 2016
Notable Portfolio: Beardo, Supr Daily, Fynd, Coutloot
Venture Catalysts is the largest integrated incubator in India that offers complete end-to-end support to startups in their lifecycle. They are notable for their integrated approach in startup development, providing founders with incubation, capital, corporate connections, mentoring, global market access, and sector-specific expertise to aid their growth. They have a global presence across India, Singapore, UAE, USA, and UK markets, amassing a portfolio of over 300 startups and over 93 exits & up rounds.
Stage: Seed, Series A
Investment Value: $100,000 - $5 million
Focus: Technology
Year of Inception: 2020
Notable Portfolio: Power Gummies, Glamyo Health, Marj Technologies
Agility Ventures is a platform for first-time and seasoned investors looking to invest in early-stage startups. Founded and led by experienced angel investors and financial management experts, they provide a simplified yet robust startup investing ecosystem in India. They will assist founders at every stage, helping match them with investors who are as passionate to pitch for investments. In the last 2 years, they have supported the launch of over 30 startups.
Closing Thoughts on Angel Investors in India
As previously discussed, angel investment networks are a great avenue to connect with angel investors who may fund and support your business during its challenging beginnings. As such, it is critical to locate the ideal investor who is as invested in your venture's future success as you are. If you're on the lookout for qualified business investors, it is best to reach out to the angel investment networks listed above.
Once you're ready to attract an angel investor, make sure to prepare a convincing business plan with realistic values, build a good management team, know your numbers, and understand your customers. After all, a well-thought-out notion is a well-presented idea. It might be the make-or-break factor in securing your finances.