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Priyanka Desai · · 7 min readI interviewed 9 Indian angel investors to get their thoughts on startup investments
Priyanka is a star contributor for Tech in Asia and publishes exclusive, high-value content that serves the Asian tech community. Read more from star contributors here.
According to VCEdge, 2017 saw 435 angel and seed investments amounting to US$244.6 million. According to Inc42 DataLabs, more than 1,668 angel investors have participated in funding Indian startups from 2015 to 2017.
Beyond cash, angel investors play a crucial role in mentoring business owners by offering their hands-on experience and a network of valuable connections.
To know more about the Indian angel investing landscape, I reached out to nine active investors in the space. Here’s all you need to know from my interviews.
What does an angel investor look for when investing in a startup?
“We bet on the jockey and not on the horse.” That’s what a majority of the investors I reached out to said.
Revathy Ashok is a serial investor with investments in more than 16 startups, including Druva and Wishberry. According to her, “The idea is one of the most important things we look at while investing in a startup.” Is the problem being solved scalable? Is the business model and growth potential “VC-fundable?” Will it eventually provide an avenue for an exit?
But a startup’s team is just as important. For Siddharth Kothari (an early-stage investor in Innov8), a confident and experienced team with internal chemistry, track record, and domain knowledge is what he looks for.
Apurva Chamaria, the VP and head of corporate marketing for HCL Technologies and an investor in Innov8, says his investment in a company depends on the following questions:
- Is their consumer/customer validation deep?
- Are there two or more founders?
- Are the founders bootstrapping to start with?
- Are they profitable? If not, are they clear on their path to profitability?
- What is their approach to building a differentiated and viral brand? How will they generate “consumer love?”
What are the red flags for an angel investor?
What additional support does an angel investor offer?
The funding gender gap
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