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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

Angel Tax
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Andy Mukherjee | Bloomberg
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

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First Published: Jan 31 2019 | 7:25 AM IST

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