The Indian startup sector has been going through a metamorphosis. While of late, one hears of an investing winter, what has been a silent shift over the past few quarters is the rise of angel investors beyond major cities. This also helps shatter the myth that startups are all about urban consumers, urban investors, and address only English-speaking consumers.
Local Angel investing
Angel investors are individuals who offer initial funding to startup ideas for a share of equity. The first funding of such ventures is seed funding. Angel investors do invest at the idea stage or if the business has started and needs further investment to stabilize (where in such situations, typically the founders have put in the initial capital from their savings, and from their families and friends). Angel investors usually fund the business, after the original funding is in place but before a company requires a more sizable investment from a venture capital company. Angel investment is needed to grow a company from its early stage of development, to demonstrate business viability for the next round of funding. Angel investors (can) play a vital role in mentoring the founders, and can be a strategic sounding board to the core venture team.
In the last few years, startups have not just built their consumer offerings for urban pockets, but also for the rest of India. More keenly, the domestic capital for some of these investments is not coming just from ultra-high-net-worth individuals (UHNIS) or high net-worth individuals (HNIS) in the top ten cities. They are also coming in from investors in tier-2 and tier- 3 cities. India ranks third globally in the startup ecosystem, after the Unites States and China.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences