New Delhi: New Delhi has outpaced Bangalore in the number deals done by angel investor groups in 2015-2016, as per InnoVen Capital’s India Angel Report 2016, the latest edition of its annual report analyzing investment trends by major angel groups in the country. The report reveals that overall deal activity of the angel investments saw a significant growth in FY16, amounting to Rs.1137 mn across 69 deals, as compared to Rs.703 mn across 47 companies last year.
In an another report released in February by InnoVen Capital ‘Startup Outlook Report 2016’ found that Delhi-NCR had emerged the preferred destination for entrepreneurs, followed by Bengaluru. Now this trend is confirmed by the latest Report, with Delhi-NCR accounting for ~36% of angel deals (25 deals). In Bengaluru, the number of deals was 14 while Mumbai saw nine. Delhi-NCR overtakes Bangalore at a 2x rate over 2014-15.
Valuations also rose in deals having angel investments, with the median pre-money valuation in FY16 at ~Rs.100 mn, up 10% over the previous year. On a sector wise, B2C startups attracted over two thirds of angel group investments, with consumer internet, food and e-commerce as top sectors. In the B2B space, startups in IT / ITES and marketing / advertising sectors received majority of the investments. Revenue generating startups are found to be favorite hunting ground for angel groups, with ~71% of the startups backed by angel groups generating revenues.
This year the report also demographically analyzed startups and founders funded by angel groups. The report reveals that the average startup had two co-founders, and one-fourth of all startups in the sample had at least one female co-founder. Interestingly, the average founder had 8 years of experience prior to starting up and 28% of all founders were found to be serial entrepreneurs.
The report makes an interesting study on founders’ academic backgrounds. The report mentions that nearly 67% of founders were engineering graduates and the majority of them had a post-graduate qualification, most commonly an MBA. 46% founders had an MBA whereas 15% had a post-graduate qualification in a technical subject. India’s elite academic institutions were well represented amidst founders – 23% of all engineering graduate founders were from the IITs, while 16% of all founders with an MBA were from the IIMs.
