How SEBI encourages Angel fund! How it makes Angel investors to invest more in Angel Fund? Are you thinking to
invest your money?
What is Angel Fund?
Angel Fund is a scheme under alternative investment fund that receives funds from angel investors and invests as
per the provisions of Alternative Investment Fund regulations.
Who are Angel investors?
Angel Investor is any person who propose to invest in angel fund scheme or an affluent individuals (Retired
entrepreneur or executive or small group) who provide capital for startups, where such start-ups find it difficult to
obtain funds from conventional sources of finance such as financial institutions, banks etc.in exchange for
ownership equity or convertible debt and also helps with advice and contacts.
What are the Source of Fund?
Angel investors typically use their own money for investment.
What is Expected Return?
The internal rate of returns for a successful portfolio for angel investors ranges from 20 to 30% over a period of
Encouragement by SEBI:
Angel Investors in India have to play an important role in the startup ecosystem, which is 3rd Largest in the world.
In the recent years, the startup ecosystem in India has really grown & come into its own—driven by factors such as
massive funding, consolidation activities, evolving technology. The number of angel investors in India has grown
considerably over the past few years; only 84 have registered themselves under SEBI because of the stringent
regulatory requirements. Recently SEBI has amended Rules via PR No. 161/2016 dated 23rd Nov, 2016 where, SEBI
has liberalized policy for Alternative Investment Fund for Angel fund to encourage angel investor to participate in
the scheme which is highlighted as under:
If we talk about top 10 Angel Investors in India then the name would be:
- RajanAnandan – Google India’s MD.
- AnandLadsariya – CEO and Promoter of Chemical Maker Everest Flavours, Alumnus of IIMA.
- AnupamGopal Mittal – Founder and CEO of People Group.
- ZishaanHayath – An Entrepreneur.
- Sanjay Mehta – Member of Prolific Investment Groups.
- RehanYar Khan – Founder of Orios Venture Partners.
- Sharad Sharma – Former Head of Yahoo’s research and development in India.
- Sunil Kalra – New Delhi based Kalra.
- Rajesh Sawhney – Founder of Times Internet.
- Mohandas Pai – CEO of Infosys
Currently, 266 AIFs are registered with SEBI, of which, 85 are registered under Category I, including angel funds and it can be increased in near future.