Andhra Pradesh Innovation Society’s Workshop on Investing in Startups Made Easy was held in partnership with Knowledge Partner Let’s Venture, in the City of Bhimavaram, Andhra Pradesh on April 27th, 2018. The group of people in attendance was a mix of Entrepreneurs, Industrialists, Working professionals and students who are interested in early stage investments in startups and also eager to learn about Angel Investments.
The workshop started with the first basic question of What is a Startup? And which entities will fall under the categories of Startups. From there, Ms. Sunitha Ramaswamy, Director, Let’s Venture took the discussion forward talking in detail about the ins and outs of Angel Investments.
The best way for startups to raise money is through Angel Investors, in return for a percentage of equity in the startup.
The startups life cycle of raising money might include Bootstrapping (funds from friends & family), Angel Investors, Venture Capitalists and Venture Capital Funds, Institutional Investors, etc.
Investments in startups doesn't have to be restricted to IT/ITES based entities, but can also be sector agnostic like agriculture, healthcare, education, which have a social impact.
Investments should be made in the startups which are working in the fields of investors’ domain expertise and interests
India is still a nascent market for investments in startups. The numbers of investments in startups are discussed as follows: ? 3% of firms generate 95% of returns.
370 Startups raised angel investments in 2014, 511 startups in 2015, 600 startups in 2016 and 400 startups in 2017.
Angel investments can go upto Rs. 3 Cr, Series A: 12-18 Cr, Series B: 30 Cr and above.
Founders need to raise money to hire a talented team, running operations, establishing technology requirements and other expenses
Discussion on evaluating a deal at multiple stages of the startup, team, technology and other parameters.
In order to get the mechanics of investment right, convertibles, VC Seed Rounds and Lead Incentives.