Today, AngelList India is announcing Angel Funds for India, a new way for individuals and institutions to raise capital upfront to invest across multiple startups. Angel Funds allow experienced angels or a group of investors to raise meaningful capital and use AngelList India’s infrastructure to run their investment back office. This will allow experienced operator angels to write larger and faster cheques into more competitive deals.
Angel Funds complement syndicates. Investors who raise an angel fund commit to building a portfolio of private investments, while syndicates allow for deal-by-deal sharing of opportunities with their backers.
Angel funds are full-fledged venture funds
Angel funds are legally and operationally like a traditional venture fund. They can be set up in a few days, without legal, regulatory and back office hassle. They raise capital upfront, so they can make investments quickly and privately. And angels contribute to their own fund, so they have skin in the game.
To date, six Angel Funds have been launched on AngelList India and those funds have already begun making investments in Indian startups. First Cheque, a seed investing program from India Quotient, has invested in over 10 startups with their Angel Fund. The IIM-K Alumni Association, a premier Indian Institute of Management, is using an Angel Fund to build upon their shared network and support emerging startups.
The Collective will invest alongside AngelList India funds
‘The Collective’ is a fund raised from top institutional LPs that is dedicated to investing on the AngelList India platform. Angel fund managers have the option to invite ‘The Collective’ to invest alongside them, thereby bringing institutional capital into the mix early on. Fund managers will be able to deliver more capital to the companies, while still earning carry on The Collective’s investment.
Past performance is not indicative of future returns. Examples of past investments supported through AngelList are purely for illustrative purposes. An investment in startups, involves a high degree of risk and is suitable only for sophisticated and qualified accredited investors. Neither Venture Hacks Inc (“VentureHacks”) nor AngelList India LLP is a stock exchange recognised by the Securities and Exchange Board of India (“SEBI”) under the Securities Contract (Regulations) Act, 1956. The Platform (www.angel.co/india) is not a fundraising platform. The Platform only registers the Eligible Angel Investors and target companies and allows them to interact with each other in a restricted environment. No securities are offered by any target company on the Platform. The Platform merely markets the operations of its India centric fund (hereinafter referred to as “India Fund”), duly registered with SEBI as an Angel Fund having registration number IN/AIF1/17–18/0504. The India Fund solicits commitments from Eligible Angel Investors directly and through AL Access Trust. Units of the India Fund or of AL Access Trust are not traded on any stock exchange recognised by SEBI.