Indian Angel Network (IAN) is planning to raise an early stage fund of $22 Mn (INR 150 Cr). It has already registered a fund with the Securities and Exchange board of India (SEBI), as shared by a source, familiar with the matter.
The fund will be used to invest in early stage startups and also for making follow-on investments along with its angel network ( a group of high net worth individuals). The fund will be raised from within their own network of 400 angel investors.
According to an official statement, “Angel networks operate on a first-come-first-serve basis, so when an interesting deal comes along, only the angels that show interest early are able to participate in the round and many angels end up losing out on that particular investment. With a fund that co-invests in these deals, all the angel investors who are part of the fund still get an opportunity to invest, indirectly through the fund.”
IAN has made 17 investments so far in 2016. The Network aims at investing up to $1 Mn, with an average of about $400-600K and exiting in three-five year period through a strategic sale. Its portfolio includes companies such as Square Plums Technologies, FindMyStay, Protinus Fashion Networking Pvt. Ltd, Little Black Book, One Way Cab, Wiwigo, Roast Media Pvt. Ltd. and more.
Earlier this month, Ratan Tata also announced the setting up of a venture capital fund of $100 -150 Mn in collaboration with the University of California. Unicorn India Ventures, Pravega Ventures, Stellaris Venture Partners, WaterBridge Ventures, Endiya Partners and Parampara Capital, are a few new funds that have been launched recently.
Other prominent angel networks in India are Mumbai Angels, Hyderabad Angels, Chennai Angels, LetsVenture, Ah! Ventures and Stanford Angels & Entrepreneurs.
As per a report from Innoven Capital, angel investment in India in FY 2016 stood at $17 Mn (INR 113.6 Cr) across 69 deals, a rise of about 62% in deal value and 47% in deal volume from the previous financial year. In FY15, about $10.4 Mn (INR 70 Cr) was invested across 47 deals.