Angel Investing in India: Where Did the Money Go? It’s a No-brainer Really [Halo Report]

Info Tech & IT Services and Internet services remained a favorite among Indian angels between 2005-2012, says the Halo Report published by the Silicon Valley Bank.
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Info Tech & IT Services and Internet services remained a favorite among Indian angels between 2005-2012, according to a new report which pointed out that the median angel round size in India is less than half of that in the United States.

A report which went through publicly disclosed angel deals made between 2005-2012 in India, found that the median angel round size is about Rs 1.52 cr in India as compared to the median angel round size of Rs 3.72 cr in 2012 in the United States. Note that the report talks only about the investments made by angel groups.

Halo Report 1

According to The Halo Report published by the Silicon Valley Bank, large per group investment dollars highlights that Indian angel groups complete most deals independently. The median investment size per angel group in India was at Rs 1.1 cr as compared to Rs 74 lakh in the United States.Halo Report 2

The median early stage pre-money valuation was Rs 10 cr as compared to Rs 15.5 cr in the United States. Indian angel group investments are nearly all in the new companies, highlighting that angel groups are focused on new opportunities at the seed stage, said the reportHalo Report 3

The report was created out of angel group investments made between 2005- 2012 totaling Rs 177.4 cr across 96 disclosed deals.

Here are some of the highlights of the report

  • Median Angel Round Size: Rs 1.52 Cr
  • Median per-group contribution: Rs 1.10 Cr
  • Early Stage Pre-Money Valuations: Rs 10.0 Cr
  • 95% of Indian angel group activity is in new companiesHalo Report 4

Among cities, Mumbai, Bangalore and Delhi saw the most number of angel investments. Pune and Chennai also saw a fair bit of action.Halo Report 5

Info Tech & Services remained the hottest sector with online services trailing close behind. Angel investors also backed companies in telecom/ mobile and value added services companies as well as education, analytics and e-commerce companies. Life sciences and Manufacturing saw very little action.Halo Report 6

Read the full report here (pdf).

Recommended Read: Angel Investing in India is broken

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