US-based AngelList, an online platform which supports early-stage funding and startup recruitment, has introduced a new way, for investors, High Net-worth Individuals (HNIs) in India, to invest in startups in India. With launch of its ‘Syndicates’ product in India AngelList will now lets investors team up with like minded people and pool funds for investments in startups in the country.
You might not know but startups including Uber, in its early days, have raised more than $700 million through this AngelList’s Syndicates only, besides 1,800 other startups which have raised over $6 billion through the platform in follow up funding.
With this launch of Syndicates for India, investors in India can now invest alongside experienced angels and VC funds that invest in India’s vibrant tech ecosystem.
AngelList, in an official blog post, said, “As part of this launch, we’ve gathered the support of experienced entrepreneurs and investors in India like Kunal Shah, Ash Lilani and others. Approved backers will get access to syndicates from great investors like Sandeep Tandon, Shalini Prakash, K-Start and others”.
For Startup Founders in India
The launch of Syndicates for India broadens the range of investors from which startup founders can raise funds.
For example, suppose an angel wants to invest $250K into a company. They personally invest $50K and ask 10 other investors to invest alongside them. They pool the investors into a fund which invests another $200K.
Startup founders can discuss how much the syndicate will invest, on what terms, who should be able to invest, what information will be shared, and when you’d like to close.
Once documents are signed, AngelList collects funds and wires them to startup founders. AngelList can close deals in as quickly as 72 hours.
For Investors in India
Syndicates are a private single-deal investment vehicles that let you invest in startup allocations shared by syndicate leads, enabling more angels to participate by getting access to top deals. Similar to a VC fund, syndicates provide experienced investors the opportunity to earn carried interest on their allocation, and the ability to write bigger checks by pooling capital from dozens of backers in the ecosystem. Learn more about the benefits for leads.
In the past, AngelList has supported investments into Indian startups like ClearTax, DocTal, and Squad.