Loading ...I am not sure if this topic has been discussed before - pls direct me to the post or if people have newer insights, it would be great to discuss.
I am curious about opportunities to get funding in the $1M range for start-ups in India.
1. Most of the VCs in India seem to be interested only in deals over $2M. The average size seems to be $4M-5M. I believe this is a direct consequence of VCs raising funds over $100M. Even if you write $5M checks you still need to manage 20 companies! So cannot afford to make and then manage small investments. Also, with the valuations of many established companies falling to ground levels, with a $5-10M investment, VCs can now get a good stake at low risk. So more VCs seem to be doing PE type deals.
2. $1M is still a big amount in India. It cannot be raised from Friends, family and fools. Angel investors also balk at that number. Are there any professional investors who fund in this range? What are the options available for companies planning to raise in this range? (Of course, if there are no options available, we can always wait till we have greater investment needs)
regards,
Vamsi.
Reposted from http://vamsikv.wordpress.com
Few firms in the $1M arena:
Ojas Ventures
Erasmic (now Accel)
VenturEast
Footprint Ventures
SeedFund (they may perhaps be a little smaller than $1M)
Nik
You could also try the angel networks - Indian Angels and Bombay Angels. Range is from $250k to $1 mm.
The best way is to get seed fund (<500K) from FFF and angels, then boost your revenue to cover operation until you reach 2-5 million range
@TechLang - FFF : Friends, Family and ???
There is also a fund that has recently been launched called Epiphany Ventures. Its sweet spot is $1-3 million in early stage companies. You and others in need of similar funding can contact them (contact@epiphanyventures.in).
I think $1 million is also too large and I have met people who need less than 250K, which is also quite difficult to raise from FF. Opdrage Venture Partners do deals in sub 250K range and I believe that there is a need to consider that market.