AngelList
has expanded its syndicates program to India in the latest overseas move for
the
US
crowd-funding platform.
The
launch comes some 18 months after we reported that AngelList had hired UtsavSomani
to
launch the service and develop its business generally in India, where it also
offers its
hiring
product.
Syndicates
was launched in the US in 2013 with the purpose of giving experienced early
stage
investors more spending potential and allowing those with less experience to
join
them to put
money into promising early-stage companies.
Essentially they operate like mini
funds,
but
they are focused on helping investors get into top deals that would otherwise
be difficult
to
access.
Available
in the US, Canada, the UK and now India, AngelList said Syndicates have raised
$705
million from more than 1,870 startups. Those companies have gone on to raise
$6.4
billion
in subsequent follow-on funding, according to the company. Some of those
startups
include
Uber, as well as India’s ClearTax — which is US-registered
and
took part in Y Combinator.
Now
AngelList wants to upend India’s early stage market with Syndicates.
“Traditionally,
an angel investor with conviction may write a single ₹10L cheque to a startup.
With
syndicates, that same investor can lead a syndicate and pool more capital from
dozens
of
value-add backers who can help the company — all while having only one name
added to
the cap
table,” the company wrote in a blog post.
Already,
it has recruited at least half a dozen syndicate leads, including Saama
Capital’s Ash
Lilani,
FreeCharge founder Kunal Shah, and Citrus Pay founder Satyen Kothari.
Syndicates
are
open to Indian residents who meet certain finance requirements outlined on its
website,
including
net assets of at least 2 crore, or a net worth of 10 crore.
Those
certified in India will be eligible to invest in US startups on AngelList, and
those of
other
countries, so long as they qualify for the relevant domestic investor status.
In the US
that
means a net worth of $1 million or more, or an income over $200,000 per year
for at
least
two years.
The
timing seems ideal in India with reports suggesting that the number of startups
landing
angel
or seed rounds halved during 2017 due to investor caution. That’s according to
data
from
VCCEdge, the data business of tech media firm VCCircle, which found the number
of
early
stage deals dropped from 901 in 2016 to 435 in 2017. The total spent by
investors fell
from
$374 million to $245 million over the same period.
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