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For startups to grow they must garner funds from investors; and to gather funds, startups need to have a robust product-market fit along with a promising team and a solid business plan with the potential to scale. Then comes the role of angel investors and <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">Venture Capital</keyword> (VC) <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> that usually surfaces when larger amounts are required to grow a business. 
 Lately, major <keyword id="982553" type="UNKNOWN" weightage="100" keywordseo="Indian-startups">Indian startups</keyword> have seen a tremendous boost from venture capitalists. To start with, we saw how Tiger Global Management, Softbank Corp., Morgan Stanley, Sequoia Capital, Accel Partners, IDG Ventures India and SAIF Partners managed to support promising Indian startups like that of Flipkart, Snapdeal, Ola, Zomato, ShopClues, Urban Ladder and many others. Moreover, it is not only the bigger firms who are eyeing VC funds, relatively younger and smaller firms like OYO Rooms, Swiggy and Grofers have also joined the race. 
 Apart from ruling the e-commerce and fashion industry, <keyword id="153868" type="UNKNOWN" weightage="100" keywordseo="VC-funding">VC funding</keyword> is now gradually moving into other sectors too, such as agriculture, healthcare and education. As per the data from the upcoming Wharton India Economic Forum (WIEF), which is all set to launch the Wharton India Startup Competition (WISC) with over 500 entries, though majority of applicants (around 25%) belong to the e-commerce industry, the healthcare segment is not far away with around 22% applicants. Moreover, most of the participating startups already have pre-seeded and seeded funding arrangements and around 31% of them have listed themselves as social enterprises. 
 
The ecosystem for VC funding for Indian startups would be discussed at length at the Wharton India Economic Forum (WIEF). WIEF is a two-day event starting from January 6, 2017, which will bring together the best entrepreneurs, investors, distinguished Wharton faculty, students and inspirational speakers. Attendees will not only have numerous opportunities for interaction and networking across the board but will also witness in-depth discussions in terms of understanding the evolving business landscape in India and the need for business model innovation from the government, various industry leaders, and distinguished Wharton faculty. 
 
The relevance of this summit doesn’t end there. It is also known for hosting the Wharton India Startup Competition (WISC) which is giving Indian startups the opportunity to present themselves in front of an esteemed panel of judges and also win cash prizes of over $25,000 and unparalleled mentorship of up to 4 months from some of the most renowned names in the industry on strategy and funding. The jury for WISC comprises top-notch personalities with the likes of Bharati Jacob (Co-founder of Seedfund), Nipun Mehra (Investor at Sequoia Capital India), Rehan Yar Khan (Managing Partner of Orios Venture Partners), Tarun Davda (Managing Director of Matrix Partners), Aditya Nair (Investor at Nyca Partners), Ajay Hattangdi (CEO India &amp; Group COO of InnoVen Capital Group), Ankit Shah (Vice President at Unilazer Ventures), Sameer Verma (Director &amp; Junior Partner of Nexus Venture Partners), Saurabh Joshi (Strategy Manager at PayPal) and Shantanu Gangal (Head – Analytics at Fundbox). Also, past finalists of this prestigious event includes names such as Ketto, Haptik, Zoomcar, Zostel, Targeting Mantra, Qlicket, Samaan and Ambitioni. 
 
Needless to say, such competitions and summits go a long way in not only promoting upcoming startups but also in educating the audience and the participants regarding the funding scenario. Not many seem to be aware about the types and rounds of funding, the know-how of VC funding and even the right way to go about securing such funds, hence this is surely going to be one the most-sought after events at the start of the next year. 
 
(Image Credits: Thinkstock) 
 
(About the Author: This article has been authored by Aman Jain, Chairperson WIEF 2017)

How VC Funding Fuels the Indian Startup Ecosystem

<ul><li><keyword id="328347" type="ORGANIZATION" weightage="20" keywordseo="Indian-Angel-Network">Indian Angel Network</keyword> has closed its fundraising for the <keyword id="6129174" type="UNKNOWN" weightage="20" keywordseo="IAN-Fund">IAN Fund</keyword> after raising at ₹375 crore.</li><li>The fund over exceeded its target by ₹25 crore. </li><li>It currently has 34 companies in its portfolio, including the recently turned unicorn startup Druva.</li></ul>Seed and early stage investment platform Indian Angel Network closed its capital raising activity for the IAN Fund as it overshot its target by ₹25 crore. The fund raised ₹375 crore in all. “The fact that we have achieved and exceeded our capital target underlines our impressive growth trajectory and highlights the faith that investors have in our vision. Moving ahead, we aim to scale newer heights and play a bigger role in transforming and nurturing India’s entrepreneurial landscape,” said Padmaja Ruparel, founding Partner of the IAN Fund. Some of the fund’s participants include Institutional investors like SIDBI’s Fund of Funds for <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">Startups</keyword>, IIFL, Wadhwani Foundation, Yes Bank, Max Group, Gray Matters Capital, and Hyundai. Individual investors like Kris Gopalakrishnan, Sunil Munjal, Rajan Anandan, Kanwal Rekhi too invested in the fund. IAN fund was founded in 2017 and since then it has been an active angel investor. It has 34 companies in its portfolio, including Druva which recently turned a unicorn. The other startups it funded includes the QSR chain Wow Momo, wedding platform WedMeGood. The sector agnostic fund primarily invest in AI and machine learning, augmented and virtual reality, biotech, cleantech, fintech, agritech and healthtech.

Indian Angel Network closes its fund after raising ₹375 crores

A report from VCCEdge, the financial research platform of the VCCircle Network, has said that this year would see as many as 1,000 <keyword id="428085" type="UNKNOWN" weightage="100" keywordseo="start-ups">start-ups</keyword> being funded, however, the deal sizes would be much smaller if compared to the hyper funding that start-ups have received in recent years. 
 
The report says that the year has already seen 255 deals, and this rate hints that the number of start-ups being funded this year would reach the 1,000 mark. 
 
However, a look at the worth of this deals tell that the $301 million that start-ups have received so far this year have is 50% less than the funding received in the same period a year ago. 
 
"The deals data indicate that investors are clearly waiting on the sidelines by consolidating their existing portfolios and looking at only meaningful ones in those ventures with strong fundamentals and a good revenue earning model," Nita Kapoor, Head (India) New Ventures, News Corp, and CEO, The VCCircle Network, said. 
 
Kapoor also added that "the decline in series A deals or the first institutional level of venture funding for start-ups is particularly worrying, thereby making it essential for them adopt the strategy of 'Conserve and Grow'. 
 
<a href="http://www.indiafilings.com/learn/wp-content/uploads/2014/09/Angel-Funding-for-Indian-Startup.jpg">Image source</a>

A recent report says 1,000 start-ups will be funded this year, but the deal size may drop

<ul><li>Twitter co-founder, <keyword id="194394" type="PERSON" weightage="20" keywordseo="Biz-Stone">Biz Stone</keyword>, announced that they will be investing in a Kerala based startup — <keyword id="6883189" type="UNKNOWN" weightage="20" keywordseo="Sieve">Sieve</keyword>. </li><li>Sieve is a platform for tech freelancers and agencies to provide services over the cloud. </li><li>This is Twitter’s second investment in an Indian tech startup after funding <keyword id="3358959" type="PERSON" weightage="20" keywordseo="ShareChat">ShareChat</keyword>, a local language social media app, in August. </li></ul>Twitter co-founder, Biz Stone, just announced that he will be investing in a startup mentored by the Kerala Startup Mission —, Sieve founded by Sanja Nediyara. This will be <keyword id="749437" type="COMPANY" weightage="20" keywordseo="Twitter-India">Twitter India</keyword>’s second investment in an Indian technology start up within a span of two months. In August, Twitter put funding up for ShareChat, an Indian social media app for local languages. "I have used the product of Sieve as a freelancer. As an Angel, I consider the person first, and the product second. I find Sanjay as a dedicated, empathetic and extremely hardworking individual," stated Stone during a video conference at Huddle Kerala 2019. In both instances, Twitter has not disclosed the amount it has invested. What is Sieve? Sieve is a platform for tech freelancers and agencies. It provides services like infrastructure to websites, creating digital signatures or even manages invoices. As of now, Sieve only serves the US market but has plans to expand into Europe. The aim is to allow entrepreneurs to build Internet companies in the cloud. Using Sieve, freelancers from all over the world can form companies, and work from anywhere in the world. Not just Twitter Sieve’s other investor is Friends of Oorjja, an ecosystem to help individuals from the differently-abled community. Nediyara received help from mentors in the banking industry and Otis Elevators. Google also showed an interest in Nediyara’s startup when they invited him to their annual developers conference, Google I/O. See also: <a href="https://www.businessinsider.in/facebook-india-head-explains-3-ways-that-indian-tech-startups-need-to-transform/articleshow/71327000.cms">Facebook India Head explains 3 ways that Indian tech startups need to transform</a>

Twitter invests in its second Indian start up within a span of two months

If someone laughed at your idea of launching a startup and gave you an economic lesson that the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=startup">startup</a> bubble would burst soon, this is going to come at you rescue. 
 
The startup fad is going to last quite longer as <a href="http://www.businessinsider.in/searchresult.cms?query=executives">top-level executives</a> are giving fuel to new ventures. 
 
In a poll of randomly selected <a href="http://www.businessinsider.in/searchresult.cms?query=executives">C-Suite</a> occupiers across companies, it was revealed that as many as six in 10 CXO-level executives in India have invested a portion of their wealth in startups. 
 
The names of the executives have been concealed as the information was revealed on the condition of anonymity as the CXOs don’t want to reveal their personal investments. 
 
The first-of-its-kind poll asked executives from different sectors like banking, finance &amp; insurance, FMCG &amp; retail, manufacturing, technology and consulting. 
 
The survey revealed that 60 out of 100 CXOs had invested sums ranging from a few lakhs to several crores in startups. 
 
As the promoters have a risk of launching a startup, even investors see it as a risk but are undeterred. 
 
As many as 79 CXOs said they would recommend <a href="http://www.businessinsider.in/searchresult.cms?query=investment">investing</a> in startups to others, with a word of caution. 
 
A formal financial skeleton for such investment has to be evolved and till then executives are investing in startups founded by friends and acquaintances. 
 
(Image: Thinkstock)

If you thought the new players would soon go bust, Indian startups are here to stay!

<ul><li>The Indian government is planning to infuse more money towards Venture Capital (VC) fundings from its startup India fund that was initiated three years ago, to foster startup fundings at early stage. </li><li>As of now, of the ₹100 billion fund, only 19% has reportedly been invested towards <keyword id="7178479" type="UNKNOWN" weightage="20" keywordseo="venture-capital-fundings">venture capital fundings</keyword> for <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> — and the Indian government is planning to increase it to 33% by the end of this fiscal. </li><li>It takes four-five months for a VC to apply and get funds approved from government — the government claims to trim it to two-three months with the introduction of automation.</li></ul>Prime Minister Narendra <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword>’s startup India fund, which was introduced three years ago to foster startups at early stages, has reportedly allocated only 19% of its total capital so far. The total corpus under the ‘fund-of-funds’ initiative is ₹100 billion — and the Indian government is planning to increase it to 33% by the end of this fiscal, TOI <a href="https://timesofindia.indiatimes.com/business/india-business/startup-india-fund-allocates-just-19-to-vcs-in-3-years/articleshow/67316586.cms">reported</a>. The funds are allocated to venture capital funds, which have to, in turn, invest at least double the amount that the government pumps in for startups. Around ₹19 billion fund has been engaged into VC firms up to December 2018, said Mohammad Mustafa, chairman and managing director of the Small Industries Development Bank of India. He further added that they <a href="https://timesofindia.indiatimes.com/business/india-business/startup-india-fund-allocates-just-19-to-vcs-in-3-years/articleshow/67316586.cms">aim to conclude</a> this financial year allocating ₹33 billion to fund-of-funds. In fact, to ease the process of VCs raising capital from such initiatives by government, the Startup India Fund is also planning to launch ‘automation’ by next financial year. However, the initiative has faced criticism because of the <a href="https://www.businessinsider.in/the-indian-government-may-roll-back-a-tax-on-angel-investments-that-is-said-to-be-hurting-the-countrys-startup-ecosystem/articleshow/67177981.cms">‘angel tax’</a>, which applies to startups that were formed before 2016. Recently, India’s Income Tax Department issued notices to nearly 150 fresh startups. In response to the aggressive complaints, the government claims that they will not threaten startups to pay the tax. In all, it takes four-five months for a VC to apply and get funds approved from government — the government claims to trim it to two-three months with the introduction of automation. Meanwhile, the Indian government is said to be making it easier for the country’s startups to tap the Initial Public Offerings (IPO) market as an <a href="https://www.businessinsider.in/for-indian-startups-2018-has-been-a-year-of-bouncing-back-as-venture-capital-funding-doubles/articleshow/67286540.cms">alternative capital </a>source. Overall in 2018, <keyword id="982553" type="PERSON" weightage="20" keywordseo="Indian-startups">Indian startups</keyword> raised more money through fundings and financing via the venture capital route, beating other Indian companies that raised money via IPOs this year, according to data from research firm, VCCEdge. Under the venture capital funding, <a href="https://www.businessinsider.in/for-indian-startups-2018-has-been-a-year-of-bouncing-back-as-venture-capital-funding-doubles/articleshow/67286540.cms">India’s recent unicorns</a> raised ₹70 billion in its latest round of fundings from international investors such as Naspers and SoftBank among others. In fact, Swiggy entered the ‘unicorn club’ last year, accompanied by the homegrown food major, Zomato, which raised ₹13.99 billion from Alibaba Group’s subsidiary — Ant Financial Services. See also: <a href="https://www.businessinsider.in/for-indian-startups-2018-has-been-a-year-of-bouncing-back-as-venture-capital-funding-doubles/articleshow/67286540.cms">For Indian startups, 2018 has been a year of bouncing back as venture capital funding doubles</a> <a href="https://www.businessinsider.in/the-indian-government-may-roll-back-a-tax-on-angel-investments-that-is-said-to-be-hurting-the-countrys-startup-ecosystem/articleshow/67177981.cms">The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem</a> <a href="https://www.businessinsider.in/indias-largest-online-learning-service-is-all-set-to-become-the-4th-highest-valued-indian-startup-with-a-254-billion-valuation/articleshow/66474294.cms">India’s largest online learning service is all set to become the 4th highest valued Indian startup with a ₹254 billion valuation</a>

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How VC Funding Fuels the Indian Startup Ecosystem

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Indian Angel Network closes its fund after raising ₹375 crores

Sanchita Dash

A recent report says 1,000 start-ups will be funded this year, but the deal size may drop

BI India Bureau

Twitter invests in its second Indian start up within a span of two months

Prabhjote Gill

If you thought the new players would soon go bust, Indian startups are here to stay!

BI India Bureau

The Indian government has reportedly invested just 19% of its fund dedicated to boosting startups

BI India Bureau

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