And then, after about three years, IAN plans to raise another fund of about Rs 600 crores, which would pull in a total Rs 2,000 crore from individual members and VCs
Start-ups in India need not worry about fund crunch anymore.
Indian Angel Network (IAN), world's largest and also India's first group of angel investors comprising the who's who of successful entrepreneurs, plans to help raise close to Rs 5,000 crore to be invested in Indian as well as start-ups abroad over the next ten years.
"We are currently raising a Rs 450-crore fund of which Rs 200 crore has just been raised. There is also investment from our network of 460 member investors. In a four year period, our network of angel investors would invest Rs 125 crore each at the minimum like we did last year. Add to this Rs 500 crore from IAN members, the fund would invest another Rs 450 crore. We would also get co-investors like venture capital funds or strategic investors to put in another Rs 500 crore. So, in four years, there could be an inflow of Rs 1,500 crore in about 150-160 start-up," Padmaja Ruparel, co-founder and president of IAN, told DNA Money at the sidelines of Nasscom Product Conclave.
And then, after about three years, IAN plans to raise another fund of about Rs 600 crores, which would pull in a total Rs 2,000 crore from individual members and VCs.
"So, over a 10 year period, we plan to help put in about Rs 5,000 crore in seed and early-stage investing using the co-investing model," she said.
Established in 2006, IAN has so far invested in a portfolio of 104 plus companies in 7 countries, spanning 17 sectors.
After opening its office in London in 2014, IAN has now set foot in Israel from where the IAN team has just returned along with Prime Minister Narendra Modi.
Israel, in fact, being at the forefront of cutting-edge technologies in several sectors, could become a key foreign destination for IAN both in terms of investment opportunities as well as the source of funds, Ruparel said.
There, IAN carried out a session and got six entrepreneurs to pitch to its investors.
"Companies from sectors like agri, cyber security and tech in MtoM (machine to machine communication) health tech were there at the pitch session and some of these might get converted into deals," she said.
The quantum of the fund that IAN is targeting along with the member investors as well as venture funds would come on the strength of IAN's global credentials.
"We bring in quality money along with the mentorship of people like Raman Roy or Kris Gopalakrishnan or Sunil Munjal, people who have not only set up or run successful businesses but are thought leaders as well with global networks. These factors have also attracted the best of venture capital fund like Sequoia, Nexus, IDG Ventures, Kalaari or Lighthouse to work either along with us or behind us in most of these companies," she said.
Investors can draw comfort from IAN's handsome 32% Internal Rate of Return with just 15% failure rate over the past nine years, she said.
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