This paper presented on two-day state level seminar

1. UNDERSTANDING
SEED/ANGEL FUNDING FOR
START-UPS
Presented by
ANSIF EK
(1st Mcom ,MEA SS)

2. • Many businesses start with a dream, but it takes more than
just a dream for them to grow into successful businesses
Funding is a major concern for start-ups and small
businesses.
• Start-up companies are newly founded companies or
entrepreneurial ventures that are in the initial phase of
development.
• They are most commonly associated with high-tech projects,
development and production, distribution of new products,
processes or services.
• Financial institutions have been generally found to be
reluctant to extend credit facility to the first generation
companies or entrepreneurs in view of their risk perception.
• Here the scope of Seed money and angel capital

3. • The study is based on the secondary data which has
been collected from websites, Books, Journals. Research
papers etc. The study is mainly focused on the following
objectives
• To study the concept of seed / angel funding
• To find out the latest statistics of seed / angel capital
• To distinguish between seed capital ,angel funding
and venture capital
• To identify who are the seed/angel investors inn india
and their supreme clients

4. • The Ministry of Commerce and Industry released a
notification on April 1, 2015 to define a start-up.
According to it, “an entity will be identified as a start-up.
• 1. Till up to five years from the date of incorporation.
• 2. If its turnover does not exceed 25 crores in the last five
financial years.
• 3. It is working towards innovation, development,
deployment, and commercialization of new products,
processes, or services driven by technology or
intellectual property.”

5. • The term "angel" came from the Broadway theatre, when
wealthy individuals gave money to propel theatrical
productions.
• In 1978 the term "angel investor" was first used by the
University of New Hampshire's William Wetzel, founder of
the Centre for Venture Research. Wetzel completed a
study on how entrepreneurs gathered capital.
• An angel investor is an individual who invests his own
money directly in a seed stage venture in which there is
no family connection.
• The angel investor could be acting alone or in a for-mal
or informal angel group.

6. • 1. Business Angel
They are private individual who invests and shares his
personal management experience with the start-ups
• 2. Entrepreneurial Angel
They are very rich entrepreneurial individual who invests to
diversify portfolio or expand current business
• 3. Corporate Angel
Company that make regular large angel type for majority
stakes
• 4. Professional Angel
They are investor with background in professional careers,
such as doctor, lawyer, accountant
• 5. Latent Angel
They are rich individual who has made angel investment but
not in the past three years

7.  Also known as seed funding or seed Money
 Seed capital is the initial capital used when starting a
business, often coming from the founders' personal assets,
friends or family, for covering initial operating expenses and
attracting venture capital
 The term seed suggests that this is a very early investment,
meant to support the business until it can generate cash of its
own or until it is ready for further investments. Seed money
options include friends and family funding, angel funding, and
crowd funding.
 The seed stage of investing is the first level of raising capital
outside of the most common reach of the Entrepreneur such
as self-funding. Usually, this round is sourced from
professional, experts or seed capital investors such as Angel
Investors can either individually, or in an angel group
comprising small individual angel investors. Since Angel

8. • Angel investments bear extremely high risks and are usually subject
to dilution from future investment rounds. As such, they require a
very high return on investment. Because a large percentage of angel
investments are lost completely when early stage companies fail,
professional angel investors seek investments that have the potential
to return at least ten or more times their original investment within 5
years, through a defined exit strategy, such as plans for an initial
public offering or an acquisition. Current 'best practices' suggest that
angels might do better setting their sights even higher, looking for
companies that will have at least the potential to provide a 20x-30x
return over a five- to seven-year holding period. After taking into
account the need to cover failed investments and the multi-year
holding time for even the successful ones, however, the actual
effective internal rate of return for a typical successful portfolio of
angel investments is, in reality, typically as 'low' as 20–30%. While
the investor's need for high rates of return on any given investment
can thus make angel financing an expensive source of funds,
cheaper sources of capital, such as bank financing, are usually not
available for most early-stage

9. • Position Name No. Deals
1 Dheeraj Jain
(Partner, Reddiff Capital) 23
2 Anad Chandisekara
(Strategic Head ,Facebook Messenger) 20
3 Kunal Naresh Shah
(Founder and Chairman,Freecharge) 19
4 Ratan Naval Tata
(Interim Chairman,Tata Sons) 17
5 Anupam Gopal Mital
(Founder And CEO,People Group) 15
6 Anuj Golecha
(Core Team,Venture Catalysts ) 15
7 Rajan Anandan
(MD,Google India& South India) 9

10. No. Name Company Location Address
1 Abhishek Rungta Seeders Kolkata http://in.linkedin.com/in/abhishekrungta?trk=pub-pbmap
2 Adit Parekh Blume Ventures Mumbai
http://in.linkedin.com/pub/adit-
parekh/14/400/369?trk=pub-pbmap
3 Alok Mittal Canaan Delhi
http://in.linkedin.com/pub/alok-mittal/0/a/590?trk=pub-
pbmap
3 Anil Joshi Mumbai Angels Mumbai http://in.linkedin.com/in/aniljoshi74?trk=pub-pbmap
4 Bala Parthasarthy Angel Prime Bangalore http://in.linkedin.com/in/balaparth?trk=pub-pbmap
5 Bharti Jacob Seed Fund Bangalore http://in.linkedin.com/pub/bharati-jacob/3/240/a70
6 Deepak Shahdadpuri
Beacon India Private
Equity
Mumbai http://in.linkedin.com/in/deepakishahdadpuri
7 Ganesh Krishnan Tutor Vista Bangalore http://in.linkedin.com/in/ganeshk
8 Gaurav Kachru 5 ideas Delhi http://in.linkedin.com/in/gauravkachru
9 Harish Bahl The Smile Group Delhi http://in.linkedin.com/in/harishbahl?trk=pub-pbmap
10 Karthik Reddy Blume Ventures Mumbai http://www.blumeventures.com/team.htm
11 Manav Garg Indian Angel Network Bangalore http://in.linkedin.com/pub/manav-garg/0/254/227
12 Palani Rajan Innovation angels US http://www.linkedin.com/in/pvrajan?trk=pub-pbmap
13 Pallav Nadhani Seeders Bangalore http://in.linkedin.com/in/pallavn
14 Pankaj Jain 500 Startups Delhi http://in.linkedin.com/in/pankajjain
15 Pearl Uppal 5 ideas Delhi http://in.linkedin.com/in/pearluppal?trk=pub-pbmap
16 Rahul Khanna Canaan Delhi http://in.linkedin.com/in/khannarahul?trk=pub-pbmap
17 Raj Chinai HBS Angels Bangalore http://in.linkedin.com/in/rajchinai
18 Rajan Anandan Google Delhi http://in.linkedin.com/in/aniljoshi74?trk=pub-pbmap

11. • Angel funding is a type of funding investment sought in a
company generally when it is in late start-up or early stage of
operation. The company could be a little profitable and needs
funds to go to the next level. An angel investor uses personal
finance to invest in the growth of a small business. Angel
investors can make investments on their own or as part of a
group (syndicate).
• Seed investment means raising the early capital needed to
start a business. Seed capital often comes from the company
founders' personal assets or from friends and family. Though
now even seed capital is available through the commercial
route. The amount of money raised here is small because the
business is still in the idea stage and funds are desired to
cover the initial operating costs until the product or service can
start generating profits.

12. No.
Date of
Commencement
Company Name /
Product
Industry /Vertical City or Location Investors Name
1 10/03/2017 Property Share
Fractional property
ownership & Rental
platform
Bangalore
Asok Praveen
ventures
2 10/03/2017 Lavella Network SDN Solutions Bangalore Ideaspring Capital
3 10/03/2017 iOrder fresh
Online fresh fruit and
Grocery store
New Delhi
Singapore Angel
Network
4 09/03/2017 Pee Buddy
Female Hygiene Product
Manufacturer
New Delhi
Indian Angel
Network
5 09/03/2017 App Browzer Instant Mobile App Store Bangalore Deepak Gurnami
6 08/03/2017 Super Daily
Subscription Based home
daily platform
Mumbai Y Combinator
7 08/03/2017 Pipe Candy
Intelligent Sales
prospectus platform
Mumbai
IDG Ventures
Axilor Ventures
8 07/03/2017 Book Servicing
Online vehicle servicing
booking platform
New Delhi
National Science
and Technological
Entrepreneurship
Development Board
9 07/03/2017 Juno Clinic
Online Counselling
Platform
Mumbai Athul Nishar
10 01/03/2017 Paalak
Freash produce selling
portal
New Delhi Vishwadeep Bajaj
11 01/03/2017 SEEIT
Online based fashion
search portal
Kolkata
Calcutta Angels
Network(CAN)