Deal activity by angel groups zooms in 2015-16: Report

Business activity by angel groups grew significantly in 2015-16, amounting to Rs 113.7 crore in commitments across 69 deals as compared to Rs 70.3 crore across 47 companies last year, a report says.
Valuations also rose with the median pre-money valuation in the last fiscal at approximately Rs 10 crore, up 10 per cent over the preceding year, Innoven Capital said in its 'India Angel Report-2016'.
The annual report analysing investment trends by major angel groups in the country, it said.
With India being one of the largest consumer markets in the world, B2C startups attracted over two thirds of angel group investments, with consumer Internet, food and e-commerce as top sectors, the report said.

In the B2B space, startups in IT, ITES and marketing and advertising sectors received majority of the investments, it added.
"The India Angel Report is the product of our ongoing inquiry into the dynamics of the various components of the venture capital landscape. While by no means comprehensive, the Report seeks to provide some understanding of the trends within angel investing in India," Ajay Hattangdi, Group COO and CEO India of Innoven Capital said.

A strong preference for revenue generating startups observed in recent years continued in fiscal, with approximately 71 per cent of the startups backed by angel groups generating revenues.

Earlier this year, the Startup Outlook Report 2016 had found that NCR has emerged the preferred destination for entrepreneurs, followed by Bengaluru.
Further, the report found that an average startup had two
co-founders, and one-fourth of all startups in the sample had at least one female co-founder.
Interestingly, the average founder had eight years of experience prior to starting up and 28 per cent of all founders were found to be serial entrepreneurs.
At an overall portfolio level, an analysis of over 150 investments made by angel groups between 2004-2005 and 2014-2015 reveals that as of 2015-2016, angel groups had exited 18 per cent of investees, while 7 per cent had wound down, with the remainder still operational, but not exited.

More than 50 per cent of these companies have raised follow-on rounds of funding within which 22 per cent raised multiple rounds, the report noted.
The report has been prepared in collaboration with the Association of Indian Angel Groups (AIAG) and is based on data provided by member angel groups including Mumbai Angels, Indian Angel Network, Chennai Angels, Hyderabad Angels and Calcutta Angels.