The Indian startup scene has been plagued with one particular problem since the last 5 years. This problem has been the lack of Angel funding or small money. While there are several Venture Capital firms willing to lend you 1 million plus dollars if you show proof of concept and realistic revenue possibilities there are very few individual investors or angel investors as they are called around in India. The few associations that are present are Indian Angel Network and Mumbai angels.
So given this grave need for more angels, its only natural that someone spotted this problem and wrapped a startup solution around it. Here is a lowdown on the same.
This new online portal owned by Indian Funding, a subsidiary of Mash Audio Visuals Pvt. Ltd. aims to bring all types of investors and entrepreneurs on one platform. It will officially be launched on June 16, 2010 and claims to already have a large database of entrepreneurs and investors.
The basic process for an entrepreneur is to register and upload his/her business proposal on the website. After undergoing an approval process, the proposal will be categorized and all the investors who have expressed an interest in that category will be sent email alerts. The interested investor can get in touch with the entrepreneur if interested.
The procedure for the investor is the same wherein the investor has to register on the site and specify his/her investment interests. The investor will be emailed about new proposals and can also visit existing ones.
For now, Indian Funding services are free for both investors and entrepreneurs. After a period of six months, the service will continue to be free for Investors but the entrepreneurs will have to pay a nominal fee of Rs.1500 to renew their membership. The website also intends to roll out premium services such as helping entrepreneurs develop their business proposals and get them rated by experts. The details will be announced by them at a later stage.The process seems comprehensive and easy to follow. It provides another viable option for entrepreneurs to find funding.
Indian Funding aims to become the largest platform in the world to enable investment opportunities in Indian businesses. With its parent company already hosting similar platforms for photographers and Indian images, the company seems to have experience in hosting such processes.
India Investment Network
This web portal (www.investmentnetwork.in/home) is owned by Angel Investment Network Ltd, a London-based investment company. The company’s first online angel network was in UK. After its success in UK, it expanded to hosting 30 networks covering 80 countries. India Investment Network is its Indian arm. Due to this global spread it claims to be the largest angel investment community in the world.
The registration processes for entrepreneurs and investors are the same as for Indianfunding.com except that here a registration fee of Rs 4000 is charged to entrepreneurs. They can avail of premium services by paying an extra Rs 1000. The portal will feature the proposal for 90 days after which varying payments have to be made depending on whether premium services are purchased or not.
National Entrepreneurship Network is a non- profit organization that aims to promote entrepreneurship in India. As part of this objective it has associated with the Indian Angel Network(IAN). Entrepreneurs can submit their business plans online and connect with the angel investors who are part of the network not only online but also via various events conducted by NEN. The sectors and details of the investors and investments can be found here. WATBlog has previously interviewed IAN’s founder Raman Roy on its WATShow.
Besides these online portals solely aimed at connecting entrepreneurs and investors, there are various other investor angel investor networks such as paisafund.com which also can be approached for funding.
As the entrepreneurial community of India proliferates the demand for funding and investments is only set to grow. These online web portals are only the beginning of various services that can be expected to come up in the future to fulfill such demands. WATBlog has covered details of one such service here.