Angel Investors Thriving In The Indian Startup Ecosystem

Every seed needs water and sunlight to grow into a sapling and, in turn, a tree. Similarly, business ideas require initial funding or seed funding in order to be transformed from a plan to a reality. This is one of the main reasons why angel investing opportunities carry substantial significance.

Over the past decade, the network and scope of angel investing in India have been growing by leaps and bounds, a fact that is a harbinger of positive tidings for those looking for funding for their startups.

The Growth of Angel Investors in India

With an increasing number of startups across sectors, angel investing opportunities in the country have been on the rise. The number of angel investors in India has followed a similar upward trajectory. Seed capital to the tune of ₹746 crores was raised in FY21, a number that is unparalleled by any other year in India's startup funding history.

One of the key reasons why startups are finding it easier to secure seed funding and why more and more angel investor platforms are being established in India is the change in the outlook toward these ventures. No longer are startups being viewed as highly risky investments with little to no chance of success.

According to a report released by the Union Ministry of Commerce and Industry, as of June 30, 2022, India had 72,993 startups, spread across the sector and geographical lines. This is massive growth, considering the number of startups in the country in 2016 was 471.

Not only has there been growth in the number of startups in India, but also in their success. It is worth noting here that FY21 saw more than 40 startups in the country attain the coveted unicorn status, a development that further fueled investor companies in India to fund startup ideas.

Furthermore, pre-money valuations of startups in India have grown five to ten times over the course of the past five to seven years. Not only has this boosted the confidence of angel investors in India, but it has also given wings to people who have had excellent startup ideas for a long time but never fathomed adequate funding to be available in a seamless manner.

Mumbai - The Epicentre of Angel Investing in India

The June 2022 report of the Union Ministry of Commerce and Industry cited above has revealed that 48% of the startups in the country are centered around metropolitan cities, with Mumbai being the epicentre of startups and angel investing opportunities thereto.

Widely hailed as the financial capital of the country, Mumbai is considered to be an excellent place to start a new business or career, and people with startup ideas have been flocking to the cosmopolis to seek seed capital for their ideas. The wide network of angel investors in India, particularly in metropolitan cities, has been instrumental in the growth of startups in the country.

Invest In a Startup Now

If you wish to become a part of the ever-growing network of angel investors in India, you can do so by joining Venture Catalysts. As one of India's leading angel investor platforms, we have a syndicated portfolio investment of more than $720 million.

Having lent seed capital to 100+ startups across sectors, we aim to build successful companies. You can also join our crew of Startup Developers. Reach out to our team now.

Also read: Reasons Why You Need An Angel Investment In India For Your Startup