The document discusses the Indian startup ecosystem and angel investing landscape in India. It provides statistics on the number of startups in India and funding amounts. It notes that over 3,100 startups exist in India as of 2014, making it the 4th largest base worldwide. Additionally, it outlines that over 300 VC/PE deals and 225 angel investment deals have occurred in India totaling over $2 billion in the last 3 years. The document also examines the key players in angel and VC investing in India and discusses some of the main challenges for angel investors in the country.

1. Indian Startup Ecosystem
&
Angel Investing
By: Ashutosh Tyagi
Chief Marketing & Strategy Officer
‘Think As Consumer’
ashutosh@thinkasconsumer.com

2. Indian Startup Ecosystem
 More than 3100 startups in India as of 2014
 4th largest base in the world after US, UK & Israel
 New 800+ start-ups in 2014
 By 2020 there would be ~11500 startups; employing over 250k people
 Startup ecosystem is expected to accelerate with increase in internet and
smartphones penetration.
 Young entrepreneurs dominate the start-up landscape with over 73 per cent
of founders in the age bracket of less than 36 years.
 Scaling up and growth hacking-are key priorities for start-ups.
Source: Nasscom Startup Report 2014

3. Investors Landscape in India
 70 active private equity (PE) and venture capital (VC) funds in 2014.
 62 active angels in 2014.
 Over 80 incubators and start-up accelerators operating in the country at present.
 ~300 VC/ PE & ~225 angel investment deals worth over USD 2 billion in last 3 years.
 Over 20 M&A’s worth ~USD 1 billion in last 3 years
Source: Nasscom
Key players:
Seed/ Angel Pre-Series A Series A Growth Stage Late Stage
Mumbai
Angels
Hyderabad
Angels
Your Nest Nexus Sequoia
Capital
Matrix
Indian Angel
Network
Calcutta
Angels
India Quotient Seedfund Accel Helion
The Chennai Blume Kae Capital Inventus IDG Ventures Saif Partners

4. Angel Investing in India
 In 2005, there were six angel/seed investment deals, according to VCCEdge. In
2014, there were 200 such deals.
 The ecosystem is fast evolving . Entrepreneurship is becoming a top career choice.
New angel networks are opening up.
 New persona of angel investors is emerging:
 Entrepreneurs turned investors
 Second generation family business owners
 Global Indians
 Corporate MNC
 The success of startups such as Flipkart, Mu Sigma, Ola Cabs and InMobi, in terms
of scale, valuation, attention from global investors and strong exits, has also created
a positive sentiment.
Source: various published articles

5. Key Challenges for Angel Investors
 Ensuring good deal flow - Angels typically evaluate a large number of deals for
every company they invest in. Therefore its important to have a good funnel of deals.
 Providing time for mentorship – For most of the Angels, investing is not a full time
job but instead a side business. Finding time for mentoring the ventures is a
challenge.
 Driving growth without over-spending - The challenge is to grow the businesses
by creating a differentiated product that thrives through word of mouth instead of
spending huge money on marketing .
 Finding next level of funding/ exit option- Connecting the ventures company with
larger sources of funding, like VCs, PEs etc., to meet the future funding requirements
or exit option for themselves is a tough job.

6. Key Angel Groups – Comparative Market Standing
Angel Number of individual
members
No. of Investments
Mumbai Angels 205 70
Indian Angel Network 332 36
Blume Ventures 110+ 50
The Chennai Angels 63 22
Hyderabad Angels 59 11
Calcutta Angels 41 6
Source: Angel websites

7. Key Success Factors
For
An Angel Network

8. Create A Strong Brand Positioning
Position the network as
 A leading network of investors with strong and operational backgrounds who
are willing to invest not just money but also time.
 A network which not only provides financial support but adds value to the
investee companies and also provide them access to their vast networks.
 A socially responsible community contributing to the society by promoting
entrepreneurship.

9. Build & Promote The Angel Network brand
Create Buzz by aggressively promoting the brand through various marketing activities:
 Develop a comprehensive PR strategy and ensure regular presence in the Media
 Drive online / digital marketing campaigns
 Execute social media campaigns
 Participate and ensure active representation in all startups related events and conferences
 Publish periodical newsletters providing information about new developments to all the
existing and potential future stakeholders.
Objective would be to grow network by reaching out to:
 New entrepreneurs seeking financial and professional support
 Individual and Institutional Investors with sound financial strength and business knowledge
Also create a strong buzz around the invested companies to keep them in limelight and
attract VCs/ PEs for further rounds of investments.

10. Build a large web of connections
Proactively engage with members and other stakeholders to build connections with
 Industry bodies,
 Government bodies,
 Big investor groups (PEs/VCs)
 Startup cells and incubators
 Leading institutes (IITs/IIMs), international institutes etc.
Maintain a regular communication with the connections, updating them about the
developments at TCA through Newsletter, E-mailers etc.

11. Manage Internal communication & Help Build
Member Relationships
 Create a channel for regular internal communication within the network.
 Create platform for ideas sharing and knowledge transfer within the
network.
 Recognize and reward the angels devoting higher time and effort for
mentoring the ventures.

12. Facilitate Investment – Standardize Processes
 Screening process - standardize the screening activity making it an
objective data/ facts driven process
 Support to Entrepreneurs - create a framework to support entrepreneurs
in making business plans, pitching presentations and help them prepare for
FAQs
(given that most of the entrepreneurs are young without much experience
in the corporate environment, their lack of presentation and
communication skills should not become a bottleneck)
 Due diligence and investments - build resources and create process for
coordinating the activity on behalf of the Investing group

13. Monitor Investments
 Monitor Progress of Investments
 Develop a standard process for reviewing performance of the
businesses. This could include assessing
• Progress on timely achievement of business milestones
• Actual vs. target performance on key metrics.
• Gap analysis
 Set up a framework for reaching-out to the available network members
for adequate support for businesses as per their needs.

14. Build a Knowledge Repository
 Create a platform to systematically capture and organize the best
practices and learnings for the benefit of all the members.
 Facilitate easy access to information and knowledge within the
group.

15. THANK YOU!