Angel Network

Angel Network

There are many different types of Angel clubs existing internationally; these have been highly successful in providing both risk-capital as well as mentoring for budding entrepreneurs, many of them at the seed stage itself. In an angel network, initially the business plan is seen by all the members briefly and a subset of the members may agree to finance the business. Each member puts in a relatively small amount but given adequate numbers the venture receives adequate financing. The angel network allows various 'angels' to coordinate their activities informally. The credibility of each angel becomes quite important and, therefore, each potential new member has to have the approval of all old members before he is admitted into the network.

Despite the success of the angel network model internationally, there are very few angel networks in India as of now. There has been an expansion in such networks in the recent past, and this process will continue as greater and greater number of professionals achieve successes and start to invest their funds and expertise in other businesses.

One of the Angel networks in India is “The Indian Angel Network”, Delhi. The Indian Angel Network started in 1996, and brings together senior managers and successful entrepreneurs from a range of sectors. As per the networks' website, it has nearly 70 members who have made 12 investments in the last 24 months in multiple sectors like Information Technology, Mobile, Education, Internet, Intellectual Property and Hospitality, Advisory Services. The Network looks at investing from USD 100,000 to about USD 1 mn (i.e Rs 45 lakhs – Rs 4.5 crores), and exiting over a 3 to 5 year period through an IPO, M&A or strategic sale. The Network may consider investments over a million dollars but is likely to do so through syndication.

 

Looking for funding?

Take help of Angel investment networks, such as: