YourStory recently spoke with Lakshmi M Kodali of Hyderabad Angels. A brain child of TIE Hyderabad, Hyderabad Angels has over 40 big time businessmen registered with them as angels. These angels are successful businessmen who not only invest capital in a company but also mentor and guide the entrepreneurs throughout their journey.
So if you have a rock solid idea and the expertise to implement, then why wait, reach out to the Hyderabad Angels.
Tell us about Hyderabad Angels?
There a many venture capitalists and banks that fund entrepreneurs in Hyderabad but VCs only invest in startups that already have gained some traction. Angel investors on the other hand are ready to invest in startup companies that haven’t yet gained a great deal of traction, but require some support to get there. Hyderabad Angels is a platform that bridges the gap between entrepreneurs and angel investors.
How does Hyderabad Angels work?
Anyone with a business idea can submit their business plan by filling out an online application at hyderabadangels.in A screening committee looks at the business plans, on a monthly basis, and shortlists 4-5 best ideas. The selected companies are invited to pitch to the angels. The most impressive companies are then taken to the due diligence round during which a very strict background check in done on the founders and the companies. Once the entrepreneur passes through this phase, the negotiation on investment happens.
What kind of ideas do you fund?
There are no limitations as to what kinds of ideas get funded, but, the angels generally look for entrepreneurs with a very good background and skill set to be able to successfully implement the idea.
Are all the investors from Hyderabad?
Most of them are from Hyderabad. All the angels are TIE Hyderabad charter members. We have big time businessmen and experienced entrepreneurs like Sashi Reddy, founder of AppLabs, MD of Microsoft India and B.V.R Mohan Reddy, Chairman of Infotech Enterprise Limited.
Who can register as an Angel?
As of now, the membership is on a recommendation basis. All the TIE Hyderabad charter members were given invitations to join Hyderabad Angels. In fact, at present all the members of Hyderabad Angels are TIE Hyderabad charter members as well.
Why the recommendation model?
First and foremost, angel investment is risky. Secondly, we do not want people who just have the money, but, we are looking for angels who understand the business models and can also mentor the entrepreneurs. We look for angels who can train and guide the entrepreneurs to take their businesses to the next level.
Is there a revenue model for Hyderabad Angels?
All the angels pay an annual membership fee. That is the only revenue channel for us. The Hyderabad Angels just facilitates the investments. We don’t make any profit out of it. Hyderabad Angels doesn’t hold any funds or shares.
How do plan to market this platform?
It is mostly via word of mouth as of now. We have strong connections with TIE Hyderabad and business schools across India.
Anything else that you want to tell our readers?
If you think you have a great business idea and are looking for seed stage funding, do visit our website and apply for funding via Hyderabad Angels.
If you are a potential angel and are looking for great ideas to fund, then you can either register via TIE Hyderabad or approach us through an existing angel.