Sarah has a good roundup of lack of angel investing activity in India. Lets get to the more interesting part – how to solve it?
I ran into Vishal Gondal on a flight few weeks back and he had a model that is pretty interesting. And may be there are some other thoughts in the community. So let me try and frame the problem.
How do we get 1000 angel funded startups every year with average initial investment of $100K? That’s collective $100M in angel capital – enough to get started. Some key issues/ constraints/ leeway:
- Any sector
- The amount may be available through formalized groups or otherwise
- Mostly to concept stage businesses, sometimes prototype – definitely no revenue threshold
- No express requirement for mentor, or active investors (yes, this was a tough one for me to let go)
- Doesn’t include advisory capital, sweat capital, incubation resources, etc – talking cash here
- Equity investment with profit motive – no debt, no collateral, no grants
The unstated one of course is sustainability and good choice of ventures – which is a decision that markets can make. Again, I have no included ownership thresholds – markets can decide that.
Smart ideas out there?