Angel Funds

Total accredited investor count stood at just 200 at the end of 2023

Sebi plans to eliminate the minimum investment requirement of Rs 25 lakh for angel investors

Markets regulator Sebi on Wednesday proposed raising the maximum investment limit by an angel fund in a startup to Rs 25 crore, a move that can provide a boost to the new-age technology companies. It has been proposed that the minimum investment limit should be reduced to Rs 10 lakh from Rs 25 lakh at present and that the maximum investment limit be increased to Rs 25 crore from the current Rs 10 crore, Sebi said in its consultation paper. Additionally, the regulator has proposed allowing only "accredited investors" to invest in angel funds, looking to rationalise their fundraising processes, strengthening disclosure as well as governance requirements and providing operational clarity and investment flexibility. These proposals aim to restrict angel funds to investors with commensurate risk appetite and ability to evaluate investment proposals, while also enhancing the ease of doing business in this space, Angel Funds, a type of Category I AIFs - Venture Capital Funds, provide capit

The abolition of the angel tax across all investor classes marks a landmark reform benefiting India's startup ecosystem, the US India Strategic and Partnership Forum (USISPF) said Tuesday and applauded the proposal in the Union budget to reduce tax rates for the foreign companies to 35 per cent. India has long been a country of engineering and tech talent, yet there have been gaps in the innovation ecosystem. The abolition of the angel tax across all investor classes marks a landmark reform benefiting India's startup ecosystem. This important reform will stimulate increased startup funding from both domestic and international sources, the US India Strategic and Partnership Forum (USISPF) said. Applauding the decision to reduce tax rates for the foreign companies to 35 per cent, the USISPF said this action creates parity between domestic and foreign players and will be an important boost for global investors seeking to shift their international supply chains away from China. At the .

Investment firm Soonicorn Ventures on Tuesday said it has received Sebi's approval to introduce an alternate investment fund with a corpus of Rs 250 crore. The newly approved angel fund will have an additional Rs 250 crore available as a green-shoe option, bringing the total fund capacity to Rs 500 crore, the firm said in a statement. "Soonicorn Ventures (SV), the Gurugram-based investment technology platform, has received regulatory approval from the Securities and Exchange Board of India (SEBI) to introduce an Angel Fund, operating as a Category-I Alternate Investment Fund (AIF)," it added. SV has a sector-agnostic approach to investments and will allocate investments ranging from Rs 50 lakh to Rs 4 crore in startups at the initial funding stages. The platform has been investing in promising sectors, such as Drone Technology, B2B SaaS, Electric Vehicles (EV), Financial Technology (FinTech), Supply Chain Logistics and others. Soonicorn Ventures' portfolio startups include Zypp, .

It will invest in 25 start-ups focused on digitalisation, sustainability, financial inclusion

According to a UP government spokesperson, incubators in fintech, education, health, agriculture, textile, and IT/IT-enabled services have been set up

While the first close is expected within the next 60 days, the team's target is to be fully invested by the third year with potential winners

Bharatpe exit emerges as a multibagger with 80x returns

The firm handles two debt funds and an angel fund, and has assets under management of about Rs 1,500 crore

The meeting comes against the backdrop of various startups raising concerns on notices sent to them under Section 56(2) (viib) of I-T Act to pay taxes on angel funds

However, angel funds can work for passive investors

May tighten compensation pacts between PE players and management of listed firms, after board meeting today