TiE, which is heavily investing in SaaS, healthcare, and IoT, expects to increase its network’s funding pool to $30 million by 2019.
The Indus Entrepreneurs (TiE), a global network of entrepreneurs that aims to foster entrepreneurship, has said that it has - as of October 2018 - invested $15 million in over 40 startups across several domains, including SaaS, healthcare, and IoT. TiE said the size of the cheques is between $100,000 and $2 million. Last year, the for-profit network invested $12 million; it expects to increase its network’s funding pool to $30 million by 2019.
While TiE did not officially confirm its 2019 investments, Vijay N Menon, Executive Director, TiE, said healthcare and fintech continue to be top favourites for investments.
“We are looking at cross-border transactions and startups that can build a business in the US. What we have done is try to give our network global participation in all our investments; otherwise, they would be angel investors in their respective cities,” said Vijay, in Sunnyvale, California.
TiE has had 10 exits since 2016; angels from the network mostly exit when the startup raises Series A funding.
“The Valley is a unique ecosystem where there is a confluence of tech, capital, networks, and there is an acceptance of capital,” Vijay said.
He added that if Indian startups are brought by TiE chapters in India or others parts of the world, US chapters invest only if local chapters also invest. TiE members invest in their individual capacity with startups. But that's changing.
TiE Seattle is setting up a vehicle that will be part of a fund called Z5Capital. Sources said TiE’s Tampa chapter is setting up a $10 million fund; TiE Tampa was not available for comment. TiE is also setting up the Startup Anchor Programme, which validates companies with proven business models and helps them to go to market in India.
TiE Mumbai also has an angel network called TiE Angels Mumbai and is working with two categories for investing into startups:
1) Institutionalizing first cheque investment of Rs 30lakhs at a Rs 3cr post money valuation for idea stage startups.
2) Opening growth stage deals in the range of $1.5mil-3mil to the TiE Global Network.
For Idea stage startups they have already funded IP Hawk and Odd Giraffe. They are in talks to close a few more deals by November. For growth stage, the network is currently in advance talks with a few startups in the fintech vertical.