Delhi-NCR pips Bengaluru as it tops angel investments in 2015-16

BENGALURU: Delhi-NCR has overtaken Bengaluru in the number of investments by angel groups in 2015-16, according to a report by InnoVen Capital, a Mumbai-based venture debt firm that is owned by the Singapore government's investment company Temasek.

The report also found a 62% increase in the angel investment size last year. Close to Rs 114 crore was committed across 69 deals by angel groups, as compared to the 2014-15 figure of Rs 70 crore across 47 deals.

“While there might be a funding slowdown in the late-stage investment space, the reverse can be seen in the angel space.Valuations and funding rounds have gone up and there are a greater number of investors coming to the table to invest in early-stage startups. This is an important trend to note and will give a sense of optimism to a great number of companies,“ said Ajay Hattangdi, CEO, InnoVen Capital.

The average valuations of the companies in which investments were made rose by 10% to nearly Rs 10 crore, compared to the previous year's Rs 9 crore.

The data was taken from companies funded by five angel groups -Indian Angel Network, Mumbai Angels, Chennai Angels, Hyderabad Angels and Calcutta Angels. Data on startups funded in 2015-16 covers 69 deals and 67 companies.

The Delhi-NCR region accounted for 36% of angel deals, with 25 deals in 2015-16. In Bengaluru, the number of deals was 14 and in Mumbai nine. The deal values were similarly distributed. Last year, Delhi was behind Bengaluru and Mumbai, accounting for only 16% of the total angel deals. Bengaluru took 29% and Mumbai 24%.