Startup Investments by Angel Groups Hit 5 Year High in FY15-16

India angel report 2016Earlier this year there were a lot of pessimistic sentiments about decline of startup investments in the country, the flurry of funding announcements in this financial year prove that the ecosystem is thriving. There were over 220 Internet firms, as per data shared by index.co, which raised investment in the first quarter of the ongoing financial year.

With the evolving spirit of entrepreneurship, angels are also coming forth to back viable ventures. As per a latest report by venture debt firm InnoVen Capital, the amount of investments made by angel groups in India is growing year on year since FY 12-13. Based on data gathered from IAN, Mumbai Angels, Chennai Angels, Hyderabad Angels and Calcutta Angels, the ‘India Angel Report 2016’, analyses the investment trends by major angel groups in the country.

Key Highlights

Indian angel investment trends

Shown Above: Indian angel investment trends FY11-16

  • 69 deals were made in FY15-16, with the total commitment being Rs. 113.6 crore i.e. roughly 61.7% increase from the previous financial year.
  • Median pre-money valuation in FY15-16 was Rs. 9.6 crores, a 10% rise from the previous year
  • Delhi NCR region topped the investments chart both in number of deals and amount of investment.
  • Top 5 sectors that saw maximum number of deals & investments include – Consumer internet, Information Technology Enabled Services (ITES), food, eCommerce and Logistics
  • 43% of the angel funded companies funded by angels in FY10-11 have already seen successful exits.

Further Observations

Screen Shot 2016-07-29 at 12.58.12 PM

The investor sentiments observed in the report findings tell us that the investors are indeed looking to back startups that are monetising. 71% of the startups which raised angel investment in FY15-16 were in the revenue generation stage. The report also highlights that angels invested in more B2C business models as against B2B.

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Firms with 2-3 founders saw maximum amount of investor interest. There were more startups with first time founders raising investment, than those being run by serial entrepreneurs. However, on an average the founders who raised investment had an average of 8 years of prior work experience. Even with 67% coming from engineering background, only 15% were from IITs.

With the entire ecosystem buzzing in motion at present with new startups, shut downs, acquisitions, consolidations, investments and more, FY16-17 might be even more promising for the startup ecosystem in India.

To view the original report, click here

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