Historical Perspective India has always been entrepreneurial 25% of world economy in 1700 Colonization & subsequent socialism - adverse impact Old ―DNA has resurfaced with vengeance post liberalization >250 mn middle class provides a large market Share of middle class rose from 15% in 1993 to over 47% in 2010 IT Industry paved the way US$ 60 mn to US$ 60 bn in 20 years 99% first generation entrepreneurs Entrepreneurship emerging growing across all industries :, Education, Healthcare, Retail, Cleantech, .. “Old” industries / business groups resurrected & how ! Tatas, Birlas & others
Statistics or Opportunities Mobile Phones: Total cell phones - 950 M, Total number of smart phones – 450 M, Monthly compared to ~500 M cell phones in USA Land Prices: Average price per square foot for apartment in south Mumbai - $3500 compared to Manhattan condos - $1210 Automobiles: 67 million passenger vehicles, seventh largest vehicle manufacturer in world, fourth largest Asian exporter of passenger vehicles after Japan, Korea and Thailand, second fastest growing automobile market in world Internet: Third largest in the world after USA and China. 100 M users spends 16 hours per week on Internet Gold Consumption: Highest in India (1,100 tons), second highest in China (782 tonnes)
Entrepreneurship convertsJob Seekers to Job Creators Creates Employment Creates Wealth Creates Innovation Creates Self Sustaining Economic Growth And to drive this the most effective mechanism created by Man :Angel Investment & Venture Capital Model
Venture Creation : Value ChainIdeation Deployed Growth Scale up ExpansionTeam Angels plus Angel Grants Fund Venture Capital Funds IPO / Strategic Investors
Angel Investment Investments in early stage / start up companies Addresses the gap for funding early stage companies Investors access constant flow of high quality deal flow to spread their risks Network’s multiple domain expertise enables exploiting opportunities across sectors Angel investments - a new asset class Provide entrepreneurs strategic inputs, advice and mentoring with access to valuable networks Opportunity to create disproportionate wealth creation for all stakeholders Commitment of Money, Time, Expertise & Networks
IAN :For Entrepreneurs By Entrepreneurs India’s most complete player in the early stage eco system India’s first and largest business angel group Over 200 Investor members who are successful entrepreneurs & dynamic CEOs Network members from across India and overseas Entrepreneur pitch meetings in Delhi, Mumbai, Bangalore & Pune every month Concept has found resonance with corporates like Intel, Google; VCs like SIDBI, Sequoia, Nexus, RVCF, etc. Unique model of Incubator in PPP model With 26 incubatees signed up 200 + mentor network in place
Where are we today 36 investments made to date across multiple sectors - Software Products - Education - CRO - Mobile Apps - Hospitality - Consumer Internet - Robotics - Ecommerce - IT Infrastructure - Medical Devices - Semiconductor - Cloud based Over 325 deals received per month, several deals on the anvil for investment Operations in Delhi, Mumbai, Bangalore, Hyderabad & Pune, processes established Several partnerships forged TIE – ideal feeder for deal flow IVCA – ideal partner for exits NASSCOM – ideal partner for innovative cos. in IT / BPO NEN – ideal feeder for seed stage deal flow UKIBAN – Cross border Angel Network FBA – Partnership with Femmes Business Angels in Paris WBAA – Founder member to partner with world angels BANSEA – Business Angel Network South East Asia
The Proposition Clear definition of product or service Is it already developed or can you validate that it can be developed Have you clearly defined your customer Why is your product / service necessary Is it doing something Different / Differently Is it “need to have” / “nice to have” If IP based, patenting status
The Market What is the space Is it large and rapidly growing What is the competition to your product What is your strategy to deal with competition Has any market validation happened
Execution How will you deliver Experience of pilots, prototypes etc What is your sales / marketing plan Scaling up plan Risks / mitigating plan
Team Team is fundamental to early stage venture, providing the best collateral for an investor Track record Coverage of skills – finance, technical, marketing, etc Stock/compensation plan Advisers, etc.
Financials Current / Projected for next 3 years When will it break even Self investment & funding received till date Investment sought Valuation expectation
Exit Building an exit option is necessary for yourself, your team, and your investors Investors will monetize their investment How When What
And Finally Put some of your skin in the game Getting a high valuation early can be fatal Size of the pie wins every time over share of the pie Ideas are a dime a dozen, its execution, execution, execution !!
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