RISING MIGHT OF INDIA’S STARTUPS
Lucknow: Startups are the new buzzword. Startups have emerged as a new investment asset class. India currently has about 62,000+ startups. It is the next angel investing hub. Angel investing is all about access to the right opportunity.
Rapid investment in early-stage startups has been coming at the backdrop of mature startups becoming soonicorns or unicorns. In India Angel investors have learnt to manage risk by spreading out investments over multiple companies.
Apart from established businessmen, new age Angels are CXOs, mid-level corporate. executives, employees of startups who are also turning angel investors by becoming part of large angel networks.
Angel networks usually accept cheques starting anywhere from Rs 2.5 lakh up to Rs 5 crore per investor. An exit event may occur between a 5-7 year period. Angel investors, seek a 5-10% equity share in the early-stage investments which can go up to 15% in case the deal value exceeds Rs 2-3 crore. There are 85 Unicorns ($1 bn Valuation), 43 Unicorns in 2021, 13 Unicorns in 2022. Employees are around 8 Lac. 40% Startups are from Tier 2/3