Angel investing and venture performance in India

Abstract

Venture capital is typically a high-risk investment in new business ventures. Lately, India has seen a high inflow of venture capital investments in a large number of start-ups. i With increasing numbers of ventures, the Indian entrepreneurial ecosystem is becoming one of the most vibrant ones in the world. Within the broad entrepreneurial ecosystem, this study focuses on the investment trends for one type of investors – angel investors – and their role in determining the success of start-ups. There have been 509 investments by angel investors from January 2014 to February 2017, almost 200 more than during the period 2008-2013 (the timeframe for our study). Despite such prolific activity in this domain, there have been no systematic efforts to track and analyse the investments made by angel investors in India. Our study seeks to fill this gap by understanding the impact of angel investors in the Indian entrepreneurial ecosystem.