Bangalore tops start-up funding; Average valuation rises to 9 cr


Bangalore has overtaken Mumbai as the home to the biggest start-up investment scene, attracting about 30% of angel funding in India, said a report on ‘Angel Investing’ brought out by InnoVen Capital India and Association of Indian Angel Groups (AIAG).

India Angel Report 2015 also found that the median angel funding round grew to Rs 1.38 cr from Rs 52 lakhs, and median company valuation increased to Rs 9 cr from Rs 6.68 cr in the previous year.

It also revealed that Information Technology and online services accounted for 39% of the total angel funding that happened last financial year.

Angel funding refers to the very first round of funding that a start-up undergoes, and is done by wealthy individuals rather than firms.

The report — which covered more than 700 angel investors — also found that these investments increased 81% last year to touch 70.3 cr.

The report also found that there has been an increasing trend of Angel investments in companies with proven track record in terms of revenues. 76% of the companies funded in FY15 were generating revenues vis-à-vis 40% of companies funded in FY12.

The report has been prepared by InnoVen Capital India Private Limited (“InnoVen Capital”) in collaboration with the Association of Indian Angel Groups (“AIAG”) and is based on data provided by the participating angel groups to InnoVen Capital. The participating angel groups were Indian Angel Network, Mumbai Angels, Chennai Angels, Calcutta Angel and Hyderabad Angels.

InnoVen Capital India, an NBFC formerly known as SVB India Finance Private Limited, has made loan commitments of over Rs 700 crores across nearly 80 transactions to VC backed companies since starting operations in India in late-2008.

Read the full report here: InnoVen Capital India Angel Report 2015