Angel investments by five top investors rise by 81% in FY-15, report says

Angel investments - initial capital provided to start-ups by affluent individuals - made by five large groups in the country grew by 81 per cent to Rs 70.3 crore in 2014-15.

According to PTI, the investments by five large angel groups were Rs 38.8 crore in 2013-14, says the 'India Angel Report'. Between April 2012 and March 2015, there were a total of 153 deals reported, for a total value of Rs 204.2 crore.

The report covered investments done by five prominent angel groups in the country - Indian Angel Network, Mumbai Angels, Chennai Angels, Calcutta Angel and Hyderabad Angels - with over 700 members. "There has been an increasing trend of angel investments in companies with proven track record in terms of revenues," it said.

About 76 per cent of the companies funded in 2014-15 were generating revenues compared with 40 per cent of companies funded in 2011-12, the report added. "The report examines the trends emerging within the angel investing space in India which has historically been fragmented," Ajay Hattangdi, chief executive and managing director of India and South East Asia at InnoVen Capital India said.

"The growing maturity and momentum of angel investments in India as evidenced by the report bodes well for the health of the entire venture ecosystem," he added. Bengaluru pipped Mumbai to witness the highest angel investment this year, the report said adding the investment in Bengaluru surged 29 per cent, compared with 21 per cent last year.

Information technology and online services was the hottest segment, with over 39 per cent of angel money flowing into the sector. The report also pointed out that the median size of an angel round grew to Rs 1.38 crore in FY15 from Rs 52 lakh from last year, and the median pre-money valuation increased to Rs 9 crore from Rs 6.7 crore in the same period.

More than 25 per cent of angel investors participate in follow-on rounds in the companies that they have previously funded, it said. InnoVen Capital India, formerly SVB India Finance, has committed over Rs 700 crores in loans across 80 transactions to venture capital backed companies since 2008.

The report was launched by Temasek-holdings backed venture debt company InnoVen Capital India in collaboration with the Association of Indian Angel Groups (AIAG).

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