Kochi: The market regulator SEBI has approved the Startup Village angel fund to the tune of $10 million that could go up to $20 million with a ‘Green Shoe’ (over-allotment) option.
The approval for the angel fund, which would address the problem of resource crunch for start-up companies across the country, came from SEBI through a notification issued on April 23.
The focus area of the fund will be Telecom/ Internet, and it would start investing once the initial close of $2 million is achieved.
KPMG is the Advisor and ILFS is Trustee of the fund.
Sanjay Vijayakumar, Chairman, Startup Village, said the angel fund would be investing not only in the most promising start-ups located in Startup Village but also in similar enterprises across the country.
“We are looking to broad-base the investor profile with a large set of angel investors, many of whom might be first time angel investors in India,” he said. He said that the fund would be investing in the early stage category. It would invest between $20,000 and $2,50,000 into start-ups. For higher amounts, the fund would co-invest with other early stage funds.
Focus on entrepreneur
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, he said.
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 a 1,000 product start-ups by 2020.
With over 750 applications from start-ups in the last 12 months, Startup Village is blazing ahead in the incubation landscape in India. The 1,00,000-square feet building is under construction which would make the village the largest Internet-Telecom Incubator in the world, he said.
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