Angel List launches Angel Fund in India
A U.S. based online portal which helps budding start-ups to raise capital and recruit people, Angel List has recently launched an angel fund in India. This is a great opportunity for start-ups in India to raise small blind pools of capital to deploy them within a period of 12 months.
They will manage all the legal and regulatory part of capital funding and investing and the small investments can use their technologies to manage their investments. This venture funds will be organized in a way that the investors make 15 per cent profit and Angel List will charge a 5 per cent fees. The start-ups which were funded by Angel List in the U.S. in the last couple of years have seen almost 50 per cent of investments on its platform being driven by angel or venture funds.
Utsav Somani a partner at AngelList said that “People can raise these small blind pools and deploy the capital over the next 6 to 12 months, while still focusing on their day jobs,” It is completely operated by technologies this helps an individual to raise funds without getting into any legal formalities.
First Cheque backed by various successful start-up founders is one of the funds hosted by AngelList’s new offering. Other areas where Angel List is focusing on funding in India are alumni associations of premier management and various technical colleges.
Another fund formed by the alumnus of IIM (Indian Institute of Management), Kozhikode is another fund which is hosted by Angel List and backed by six other start-ups in the last few months.
Revant Bhate, Treasurer, IIMK Alumni Association said that “The ability of the platform to handle everything through the lifetime of the fund including set up, legal review for investments, taxes, financial reporting, wire transfers and distributions is very conducive for a group of likeminded people to come together and invest large cheques into start-ups,”
“Angel List’s new offering isn’t an alternative to venture funds, but more aligned with allowing individuals to raise between Rs 2 crore to 8 crore and deploy them in early-stage startups,” said Somani. He further added that “Angel List isn’t focused on increasing the amount of capital available for early-stage companies, the byproduct should be just that.”
Further, angel and venture funds using AngelList will also be able to co-invest along with the platform’s own fund called The Collective which is backed by investors such as Binny Bansal, Salil Deshpande of Bain Capital Ventures, Matrix Partners’ Avnish Bajaj, Tarun Davda and Vikram Vaidyanathan and several other marquee investors.
The fund managers can use their technology, regulatory clearances, approvals and legal back office. Somani also said that “Given our experience in this space now, we also go offline to interact with fund administration, fund trustees, their bank accounts and everything else.”