While large rounds of fund inflow have slowed down, there is not a speck of gloominess in the angel funding zone. According to a report produced by, InnoVen Capital, Asia’s leading venture debt firm, deal activity by the angel groups grew significantly in FY16, amounting to Rs.1137 Mn in commitments across 69 deals, as compared to Rs.703 Mn across 47 companies last year.
The report has been prepared in collaboration with the Association of Indian Angel Groups (“AIAG”) and is based on data provided by the following member angel groups– Mumbai Angels, Indian Angel Network, Chennai Angels, Hyderabad Angels and Calcutta Angels.
Valuations also rose, with the median pre-money valuation in FY16 at about Rs.100 million, up 10% over the previous year.
Some of the other vital statistics that the report contained were as follows –
- 28 percent of the founders backed by angel groups are serial entrepreneurs
- 24 percent of start-ups funded by angel groups had a female co-founder
- B2C startups attracted over two thirds of angel group investments, with consumer internet, food and e-commerce as top sectors
- In the B2B space, startups in IT / ITES and marketing / advertising sectors received majority of the investments
Bangaloreans – beware!
While Bangalore is the torch bearer of the startup ecosystem in India, when it comes to angel investments, investors took a de-tour to the NCR region. The report, which scrutinized startups and founders funded by angel groups demographically, revealed that NCR had emerged ahead of Bangalore as the most preferred destination for angel investments.
The report also said looped in academic details which said that about 67% of founders were engineering graduates and the majority of them had a post-graduate qualification, most commonly an MBA.