Angel investors look beyond tech, show interest in sectors like clean energy, food
In fiscal year 2013-14, angel/seed investments into non-technology start-ups made up 123 deals, gathering $36 million. The deal volume increase is 17 per cent over last fiscal.
By Bharani Vaitheesvaran, ET Bureau |
CHENNAI: The first external risktakers in a start-up, angels, have begun to look beyond technology concepts at ideas that address local markets in the fields of clean energy, healthcare and foods. This branching off is taking place in an environment where more and more of them are emerging from traditional business backgrounds: former financial consultants, chief executives who ran stationary businesses, drug firms, paint companies, and realty entrepreneurs are looking to cut their teeth in the investment world.
Take, for example, The Chennai Angels, which will soon have on board Ravindra Sanna Reddy, who promotes the 5,000-acre Sri City SEZ in Andhra Pradesh. The network is also in talks with top executives from drug makers, healthcare firms, hotel chains, and energy companies who will participate in its investment rounds soon. Keiretsu Forum, which has about 1,400 angels worldwide as members, is getting on board for its Chennai chapter investors including Biji K Kurien, former CEO of Berger Paints; S Sridharan, ex-managing partner, EY, and Chand Das, the current CEO of ITC Stationary and Paper Products
The story of angels widening the horizon began unfolding as recent as August last year. That is when a Chennai-based start-up Inthree Access got funds from the Indian Angel Network. Its business lies in taking retail into rural areas through a delivery system fronted with assisted sales done by field staff. “We have sold eight lakh units so far in the last four years, and the way forward is to extend services,” said R Ramanathan, Founder and CEO of Inthree Access. Lok Capital and The Chennai Angels put a little less than one million dollars last year in a start-up that installs science paraphernalia such as solar and physics models to facilitate observation-based learning. Also on offer is setting up and maintaining science labs for educational institutions. This is second round of funds for Everest Edusys' Quest Explore Discover.
A similar narrative exists in Dosamatic, which was incubated and angel-funded by the Indian Angels Network. The table-top machine, wired to churn out 50 dosas an hour, can make it thin, and cut fat content, and is selling on Snapdeal for Rs 1.5 lakh. Founder Eshwar K Vikas, a 24-year-old engineering graduate, said a smaller version designed for the home kitchens to make dosas, omelettes and pancakes is in the works. The cost will be around Rs 10,000 per unit.
Take, for example, The Chennai Angels, which will soon have on board Ravindra Sanna Reddy, who promotes the 5,000-acre Sri City SEZ in Andhra Pradesh. The network is also in talks with top executives from drug makers, healthcare firms, hotel chains, and energy companies who will participate in its investment rounds soon. Keiretsu Forum, which has about 1,400 angels worldwide as members, is getting on board for its Chennai chapter investors including Biji K Kurien, former CEO of Berger Paints; S Sridharan, ex-managing partner, EY, and Chand Das, the current CEO of ITC Stationary and Paper Products
The story of angels widening the horizon began unfolding as recent as August last year. That is when a Chennai-based start-up Inthree Access got funds from the Indian Angel Network. Its business lies in taking retail into rural areas through a delivery system fronted with assisted sales done by field staff. “We have sold eight lakh units so far in the last four years, and the way forward is to extend services,” said R Ramanathan, Founder and CEO of Inthree Access. Lok Capital and The Chennai Angels put a little less than one million dollars last year in a start-up that installs science paraphernalia such as solar and physics models to facilitate observation-based learning. Also on offer is setting up and maintaining science labs for educational institutions. This is second round of funds for Everest Edusys' Quest Explore Discover.
A similar narrative exists in Dosamatic, which was incubated and angel-funded by the Indian Angels Network. The table-top machine, wired to churn out 50 dosas an hour, can make it thin, and cut fat content, and is selling on Snapdeal for Rs 1.5 lakh. Founder Eshwar K Vikas, a 24-year-old engineering graduate, said a smaller version designed for the home kitchens to make dosas, omelettes and pancakes is in the works. The cost will be around Rs 10,000 per unit.
In fiscal year 2013-14, angel/seed investments into non-technology start-ups made up 123 deals, gathering $36 million. The deal volume increase is 17 per cent over last fiscal.
“It is definitely a phase where the interest is broadening,” said Rajan Srikanth, co-president at Keiretsu Forum India. The angel network had its first ever presentation in India on Friday.
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Text: Rajiv Singh, ET Bureau
These are just three of the 10 offbeat startups we’ve deep-dived into; just three of the 800-odd startups added every year; and just three of the over 3,000 startups that are trying to make it big in India.
The 10 that we’ve picked are novel, but being different or a first mover is no guarantee of being the best mover — or moving at all a few years later.
These are just three of the 10 offbeat startups we’ve deep-dived into; just three of the 800-odd startups added every year; and just three of the over 3,000 startups that are trying to make it big in India.
The 10 that we’ve picked are novel, but being different or a first mover is no guarantee of being the best mover — or moving at all a few years later.
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