2. Historical Perspective
๏ฏ India has always been entrepreneurial
๏ฎ 25% of world economy in 1700
๏ฎ Colonization & subsequent socialism - adverse impact
๏ฎ Old โDNA has resurfaced with vengeance post liberalization
๏ฏ >250 mn middle class provides a large market
๏ฎ Share of middle class rose from 15% in 1993 to over 47% in 2010
๏ฏ IT Industry paved the way
๏ฏ US$ 60 mn to US$ 60 bn in 20 years
๏ฏ 99% first generation entrepreneurs
๏ฏ Entrepreneurship emerging growing across all industries :,
Education, Healthcare, Retail, Cleantech, ..
๏ฏ โOldโ industries / business groups resurrected & how !
๏ฎ Tatas, Birlas & others
3. Statistics or Opportunities
๏ฏ Mobile Phones:
Total cell phones - 950 M, Total number of smart phones โ 450 M, Monthly
compared to ~500 M cell phones in USA
๏ฏ Land Prices:
Average price per square foot for apartment in south Mumbai - $3500
compared to Manhattan condos - $1210
๏ฏ Automobiles:
67 million passenger vehicles, seventh largest vehicle manufacturer in world,
fourth largest Asian exporter of passenger vehicles after Japan, Korea and
Thailand, second fastest growing automobile market in world
๏ฏ Internet:
Third largest in the world after USA and China. 100 M users spends 16 hours
per week on Internet
๏ฏ Gold Consumption:
Highest in India (1,100 tons), second highest in China (782 tonnes)
4. Entrepreneurship converts
Job Seekers to Job Creators
๏ฏ Creates Employment
๏ฏ Creates Wealth
๏ฏ Creates Innovation
๏ฏ Creates Self Sustaining Economic
Growth
And to drive this the most effective
mechanism created by Man :
Angel Investment & Venture Capital Model
5. Venture Creation : Value Chain
Ideation Deployed Growth Scale up Expansion
Team Angels
plus Angel
Grants Fund Venture
Capital
Funds IPO /
Strategic
Investors
6. Angel Investment
๏ฏ Investments in early stage / start up companies
๏ฏ Addresses the gap for funding early stage companies
๏ฏ Investors access constant flow of high quality deal
flow to spread their risks
๏ฏ Networkโs multiple domain expertise enables
exploiting opportunities across sectors
๏ฏ Angel investments - a new asset class
๏ฏ Provide entrepreneurs strategic inputs, advice and
mentoring with access to valuable networks
๏ฏ Opportunity to create disproportionate wealth
creation for all stakeholders
Commitment of Money, Time, Expertise & Networks
7. IAN :
For Entrepreneurs By Entrepreneurs
๏ฏ Indiaโs most complete player in the early stage eco system
๏ฏ Indiaโs first and largest business angel group
๏ฏ Over 200 Investor members who are successful
entrepreneurs & dynamic CEOs
๏ฏ Network members from across India and overseas
๏ฎ Entrepreneur pitch meetings in Delhi, Mumbai, Bangalore & Pune
every month
๏ฑ Concept has found resonance with corporates like Intel,
Google; VCs like SIDBI, Sequoia, Nexus, RVCF, etc.
๏ฏ Unique model of Incubator in PPP model
๏ฎ With 26 incubatees signed up
๏ฎ 200 + mentor network in place
8. Where are we today
๏ฏ 36 investments made to date across multiple sectors
- Software Products - Education - CRO
- Mobile Apps - Hospitality - Consumer Internet
- Robotics - Ecommerce - IT Infrastructure
- Medical Devices - Semiconductor - Cloud based
๏ฑ Over 325 deals received per month, several deals on the anvil for
investment
๏ฑ Operations in Delhi, Mumbai, Bangalore, Hyderabad & Pune,
processes established
๏ฏ Several partnerships forged
๏ฎ TIE โ ideal feeder for deal flow
๏ฎ IVCA โ ideal partner for exits
๏ฎ NASSCOM โ ideal partner for innovative cos. in IT / BPO
๏ฎ NEN โ ideal feeder for seed stage deal flow
๏ฎ UKIBAN โ Cross border Angel Network
๏ฎ FBA โ Partnership with Femmes Business Angels in Paris
๏ฎ WBAA โ Founder member to partner with world angels
๏ฎ BANSEA โ Business Angel Network South East Asia
10. The Proposition
๏ฏ Clear definition of product or service
๏ฏ Is it already developed or can you validate
that it can be developed
๏ฏ Have you clearly defined your customer
๏ฏ Why is your product / service necessary
๏ฏ Is it doing something Different / Differently
๏ฏ Is it โneed to haveโ / โnice to haveโ
๏ฏ If IP based, patenting status
11. The Market
๏ฏ What is the space
๏ฏ Is it large and rapidly growing
๏ฏ What is the competition to your product
๏ฏ What is your strategy to deal with
competition
๏ฏ Has any market validation happened
12. Execution
๏ฏ How will you deliver
๏ฏ Experience of pilots, prototypes etc
๏ฏ What is your sales / marketing plan
๏ฏ Scaling up plan
๏ฏ Risks / mitigating plan
13. Team
Team is fundamental to early stage
venture, providing the best collateral
for an investor
๏ฎ Track record
๏ฎ Coverage of skills โ
finance, technical, marketing, etc
๏ฎ Stock/compensation plan
๏ฎ Advisers, etc.
14. Financials
๏ฏ Current / Projected for next 3 years
๏ฏ When will it break even
๏ฏ Self investment & funding received till
date
๏ฏ Investment sought
๏ฏ Valuation expectation
15. Exit
๏ฏ Building an exit option is necessary
for yourself, your team, and your
investors
๏ฏ Investors will monetize their
investment
๏ฎ How
๏ฎ When
๏ฎ What
16. And Finally
๏ฏ Put some of your skin in the game
๏ฏ Getting a high valuation early can be
fatal
๏ฏ Size of the pie wins every time over
share of the pie
๏ฏ Ideas are a dime a dozen, its
execution, execution, execution !!
17. Thank you
Do write in :
padmaja@indianangelnetwork.com