Why the 'angel tax' has left early-stage investors exasperated in India

The revenue authorities have been hounding tiny companies over money raised from investors, claiming their valuations are fraudulent

About three years ago, Anup Kuruvilla left his corporate banking job in Hong Kong to return to Bangalore and assemble a group of wealthy individuals willing to place small, early-stage bets on fledgling founders.

1Crowd, the platform Kuruvilla and his partners helped set up, has 500 investors. Members co-invest with 1Crowd Fund, sharing the risks in mentoring young ventures: Some are bound to fold. The first successful exit, likely to occur when any of 1Crowd’s current stable of 21 firms goes in for Series B funding, is still some ways off. The name of the game is patience.

And that’s one thing