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?

Alok Mittal

Alok is a first generation entrepreneur, now in the venture capital business. Alok heads up venture operations for Canaan Partners in India, with focus on internet, technology and BPO space. Alok is also a founding member of Indian Angel Network - an organization comprising successful entrepreneurs looking to invest in seed stage businesses. Prior to this, Alok cofounded, a leading job portal which was acquired by Alok is an active charter member of TiE Delhi. Alok is a computer science graduate from IIT Delhi and, postgraduate from UC, Berkeley.

The views expressed on this site are personal views of Alok, and do not constitute an offical opinion of any company or organization.

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