2. Historical Perspective
India has always been entrepreneurial
25% of world economy in 1700
Colonization & subsequent socialism - adverse impact
Old ―DNA has resurfaced with vengeance post liberalization
>250 mn middle class provides a large market
Share of middle class rose from 15% in 1993 to over 47% in 2010
IT Industry paved the way
US$ 60 mn to US$ 60 bn in 20 years
99% first generation entrepreneurs
Entrepreneurship emerging growing across all industries :,
Education, Healthcare, Retail, Cleantech, ..
“Old” industries / business groups resurrected & how !
Tatas, Birlas & others
3. Statistics or Opportunities
Mobile Phones:
Total cell phones - 950 M, Total number of smart phones – 450 M, Monthly
compared to ~500 M cell phones in USA
Land Prices:
Average price per square foot for apartment in south Mumbai - $3500
compared to Manhattan condos - $1210
Automobiles:
67 million passenger vehicles, seventh largest vehicle manufacturer in world,
fourth largest Asian exporter of passenger vehicles after Japan, Korea and
Thailand, second fastest growing automobile market in world
Internet:
Third largest in the world after USA and China. 100 M users spends 16 hours
per week on Internet
Gold Consumption:
Highest in India (1,100 tons), second highest in China (782 tonnes)
4. Entrepreneurship converts
Job Seekers to Job Creators
Creates Employment
Creates Wealth
Creates Innovation
Creates Self Sustaining Economic
Growth
And to drive this the most effective
mechanism created by Man :
Angel Investment & Venture Capital Model
5. Venture Creation : Value Chain
Ideation Deployed Growth Scale up Expansion
Team Angels
plus Angel
Grants Fund Venture
Capital
Funds IPO /
Strategic
Investors
6. Angel Investment
Investments in early stage / start up companies
Addresses the gap for funding early stage companies
Investors access constant flow of high quality deal
flow to spread their risks
Network’s multiple domain expertise enables
exploiting opportunities across sectors
Angel investments - a new asset class
Provide entrepreneurs strategic inputs, advice and
mentoring with access to valuable networks
Opportunity to create disproportionate wealth
creation for all stakeholders
Commitment of Money, Time, Expertise & Networks
7. IAN :
For Entrepreneurs By Entrepreneurs
India’s most complete player in the early stage eco system
India’s first and largest business angel group
Over 200 Investor members who are successful
entrepreneurs & dynamic CEOs
Network members from across India and overseas
Entrepreneur pitch meetings in Delhi, Mumbai, Bangalore & Pune
every month
Concept has found resonance with corporates like Intel,
Google; VCs like SIDBI, Sequoia, Nexus, RVCF, etc.
Unique model of Incubator in PPP model
With 26 incubatees signed up
200 + mentor network in place
8. Where are we today
36 investments made to date across multiple sectors
- Software Products - Education - CRO
- Mobile Apps - Hospitality - Consumer Internet
- Robotics - Ecommerce - IT Infrastructure
- Medical Devices - Semiconductor - Cloud based
Over 325 deals received per month, several deals on the anvil for
investment
Operations in Delhi, Mumbai, Bangalore, Hyderabad & Pune,
processes established
Several partnerships forged
TIE – ideal feeder for deal flow
IVCA – ideal partner for exits
NASSCOM – ideal partner for innovative cos. in IT / BPO
NEN – ideal feeder for seed stage deal flow
UKIBAN – Cross border Angel Network
FBA – Partnership with Femmes Business Angels in Paris
WBAA – Founder member to partner with world angels
BANSEA – Business Angel Network South East Asia
10. The Proposition
Clear definition of product or service
Is it already developed or can you validate
that it can be developed
Have you clearly defined your customer
Why is your product / service necessary
Is it doing something Different / Differently
Is it “need to have” / “nice to have”
If IP based, patenting status
11. The Market
What is the space
Is it large and rapidly growing
What is the competition to your product
What is your strategy to deal with
competition
Has any market validation happened
12. Execution
How will you deliver
Experience of pilots, prototypes etc
What is your sales / marketing plan
Scaling up plan
Risks / mitigating plan
13. Team
Team is fundamental to early stage
venture, providing the best collateral
for an investor
Track record
Coverage of skills –
finance, technical, marketing, etc
Stock/compensation plan
Advisers, etc.
14. Financials
Current / Projected for next 3 years
When will it break even
Self investment & funding received till
date
Investment sought
Valuation expectation
15. Exit
Building an exit option is necessary
for yourself, your team, and your
investors
Investors will monetize their
investment
How
When
What
16. And Finally
Put some of your skin in the game
Getting a high valuation early can be
fatal
Size of the pie wins every time over
share of the pie
Ideas are a dime a dozen, its
execution, execution, execution !!
17. Thank you
Do write in :
padmaja@indianangelnetwork.com