Sebi approves Startup Village Angel Fund
Updated: May 07, 2013 04:45:19pm
Kochi, May 7 (KNN) In order to boost country's first telecom incubator 'Startup Village,' market regulator Sebi has approved an angel fund of USD 10 million to address the problem of resource crunch for start-up companies across the country that could even go up to USD 20 million with a 'Green Shoe' (over-allotment) option.
The focus area of the fund will be Telecom/Internet, and it would start investing once the initial close of USD 2 million is achieved, according to a notification issued on April-23.
While KPMG is advisor, ILFS is trustee of the fund.
"The angel fund will be investing not only in the most promising start-ups located in Start-up Village but also in similar enterprises across the country. We are looking to broadbase the investor profile with a large set of angel investors, many of whom might be first time angel investors in India,” the Start-up Village Chairman Sanjay Vijayakumar said.
Welcoming Sebi's approval, Kris Gopalakrishnan Infosys co-founder and Startup Village chief mentor said, "It will act like a shot in the arm for Startup Village, which would become the first incubator in India to have its own in-house fund. It will help the Internet-Telecom incubator to get the most conducive ecosystem for product startups."
The need to create the fund was felt as the angel investment ecosystem in India is still maturing, and for the vision of Startup Village to have 1,000 product startups by 2020, it has to influence policy, infrastructure for incubators/accelerators, angel network and angel funds, he added.
However, as the fund is investing at a very early stage, we would be focusing more on the entrepreneur and the team, and less on the idea. A smart entrepreneur is what the fund would back, Vijayakumar said.
The fund would leave the choice with the entrepreneur whether he wants to give a board seat or not.
Besides Gopalakrishnan, MobME, the country's first campus telecom startup, Ravi Pillai, founder of the Rs 16,000-crore Bahrain-based RP Group, and other leading angel investors in India will be part of the fund. (KNN)
The focus area of the fund will be Telecom/Internet, and it would start investing once the initial close of USD 2 million is achieved, according to a notification issued on April-23.
While KPMG is advisor, ILFS is trustee of the fund.
"The angel fund will be investing not only in the most promising start-ups located in Start-up Village but also in similar enterprises across the country. We are looking to broadbase the investor profile with a large set of angel investors, many of whom might be first time angel investors in India,” the Start-up Village Chairman Sanjay Vijayakumar said.
Welcoming Sebi's approval, Kris Gopalakrishnan Infosys co-founder and Startup Village chief mentor said, "It will act like a shot in the arm for Startup Village, which would become the first incubator in India to have its own in-house fund. It will help the Internet-Telecom incubator to get the most conducive ecosystem for product startups."
The need to create the fund was felt as the angel investment ecosystem in India is still maturing, and for the vision of Startup Village to have 1,000 product startups by 2020, it has to influence policy, infrastructure for incubators/accelerators, angel network and angel funds, he added.
However, as the fund is investing at a very early stage, we would be focusing more on the entrepreneur and the team, and less on the idea. A smart entrepreneur is what the fund would back, Vijayakumar said.
The fund would leave the choice with the entrepreneur whether he wants to give a board seat or not.
Besides Gopalakrishnan, MobME, the country's first campus telecom startup, Ravi Pillai, founder of the Rs 16,000-crore Bahrain-based RP Group, and other leading angel investors in India will be part of the fund. (KNN)
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