Silicon Valley-based online platform for startups, AngelList has launched its venture and angel fund product in India. The fund will allow individuals and institutions to raise small pools of capital in the range of Rs 2 to 8 crore and deploy them within a period of six to 12 months.
According to media reports, AngelList will manage the legal and regulatory aspects of raising capital and investing it. AngelList will charge a platform fee of 5 percent on the fund while the fund managers can make 15 percent of the profits out of these angel and venture funds.
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These angel funds act as a traditional venture fund legally and operationally. They can be set up in a few days, without legal, regulatory, and back-office hassle.
The angel fund managers will also have the option to invite an India dedicated fund, ‘The Collective’, to invest alongside them. The Collective was launched in April 2019, which raises capital from top institutional limited partners (LPs) who are dedicated to investing on the AngelList India platform, said media reports.
Additionally, this will bring institutional capital into the mix early on. Fund managers will be able to deliver more capital to the companies, while still earning from The Collective’s investment.
Previously, AngelList had launched a similar fund in the US a few years ago, which reported over 50 percent of all investments on its platform, driven either by angel investors or venture funds.
At present, AngelList India claims to have launched six angel funds, which are already investing in startups.
As per media reports, among the first few funds hosted by AngelLists’s new offering is First Cheque – a Mumbai-based early-stage investment fund backed by several successful startup founders. The other one is the IIM-K Alumni Association, an alumni association of premier management and technical colleges. It is using an angel fund to build upon its shared network and support emerging startups.
(Edited by Suman Singh)