Market regulator SEBI has approved a $10 mn angel fund being floated by Kerala based telecom incubator Startup village. The fund could go up to $20 mn.
The fund will focus on Telecom and Internet sector and will begin investing once the initial close of $2 mn is received.
“The angel fund will be investing not only in the most promising startups located in Startup Village but also in similar enterprises across the country,” Startup Village Chairman Sanjay Vijayakumar said.
Infosys co-founder and Startup Village chief mentor Kris Gopalakrishnan; MobME, the country’s first campus telecom startup; Ravi Pillai, founder of the Rs 16,000-crore Bahrain-based RP Group; and other leading angel investors in India will be part of the fund.
The early stage fund will invest between $20,000 and $250,000 USD into startups. For higher amounts, the fund would co-invest with other early stage funds.
Vijaykumar said that the fund would leave the choice with the entrepreneur whether he wants to give a board seat or not. “There wouldn’t be tag-along/drag-along rights that the fund would take as well,” he said.
The Startup Village is a public private partnership with the government of Kerala and it wants to incubate nearly 1000 product startups over the next 10 years.