Angel investor

An angel investor or angel (also known as

a business angel, informal investor, angel
funder, private investor, or seed investor) is
an affluent individual who provides capital for
a business start-up, usually in exchange
for convertible debt or ownership equity.
A small but increasing number of angel
investors invest online through equity
crowdfunding or organize themselves
into angel groups or angel networks to share
research and pool their investment capital, as
well as to provide advice to their portfolio
companies.

venture capital
Capital invested in a project in which there is a substantial
element of risk, typically a new or expanding business.
 WHY WOULD ANY INVESTOR INVEST?

Angel investors are usually experienced entrepreneurs

who themselves have been through the same phase and
the ones who understand what it takes to create a
billion dollar company out of an Idea. With handsome
amounts of money in their pockets and a will to trust
others with their finances, these Angels step in and
provide the initial support and sometimes mentorship
that helps startups successfully take over these
crucial and challenging times.
What is the range of capital you can expect from an Angel
vs VC(venture capital)?

The range is quite wide, and varies depending on whether you're talking about an individual
angel investor or an organized angel group. The average individual investment size into a
given company by angels who regularly invest in early stage companies is about US $25,000
although the overall range varies widely. Outside of the major tech centers, you might find
individuals participating in the $5K - $10K range, and there are certainly high net worth
individuals who can, and do, invest upwards of $1 million in one chunk into early stage
deals.

The average amount invested by organized angel groups these days is in the range of $250K
- $750K, which is roughly the same range as the so-called "super angels", who are more
correctly described as "micro vcs".

Traditional venture capital firms have generally started their Series A investments in the
$3m - $5m range, with follow-ons in later rounds going up to the tens of millions of dollars.
However, with the rapidly decreasing cost of starting up a business, and the pressure at the
low end from angels and seed funds, many VCs are now dropping down and, either directly
or through special-purpose funds, making much smaller investments.

So, putting it all together, in very, VERY rough ranges, it looks something like this:

From $0 - $25,000 you will likely be investing your own cash out of your own pocket,
otherwise no one else will be comfortable investing at all. Once in, this money stays in, and
is part of what makes up your Founder's Equity (along with your work and your intellectual
property.)

From $25,000 - $150,000 you will likely be rounding up friends and family to put in the
first outside cash on top of yours. This will usually be documented as either a straight sale of
Common Stock (which is most typical) or else as Convertible Note which converts into the
same security as the next professional round, but at a discount (which is actually better for
everyone).

From $150,000 to $1.5m, you are in angel territory, either by lucking into one really rich
and generous angel, or (more likely) by pulling together either a bunch of individuals (at
$10,000 - $100,000 each), or one or more organized angel groups, or one or more micro-
VCs ('super angels'). Depending on the circumstances, they will invest either in the form of a
Convertible Note (but with a cap on valuation), or else in a Series Seed or Series A
Convertible Preferred stock round, using similar documentation to that used by VCs.

From +/- $1.5m up to, say, $10m, you're looking at early stage venture capital funds,
which will almost certainly be using something very much like the National Venture Capital
Association's Model Series A documents. They will likely make their first investment about
half of what they're prepared to put in, with the rest coming in one or more follow-on
rounds if you execute successfully on your plan.

Finally, north of, say, $10m - $20m, you'd be getting money from a later stage venture
capital fund, whose paperwork will be similar to the earlier VCs. They will put in much
larger amounts of cash, but your valuation will be much, much higher, so they may end up
with a smaller stake than the earlier investors (who would likely have continued to invest in
each round in order to maintain their percentage ownership.)

Although this is the canonical progression, keep in mind that the number of companies that
get all the way through it is very, very, VERY small. A majority of companies that are started
in the US begin and end with the first stage: the founders' own money. The number of
companies that are able to get outside funding then begins to drop by orders of magnitude:
the percentages (again, very, rough) are that 25% of startups will get Friends & Family
money; 2.5% will get angel money; 0.25% will get early stage VC money; and probably
0.025% will make it to later stage VCs.

THE WEBSITE http://trak.in/ is updated daily and lists down all

the funding and investments that have happened monthly.
LINK - http://trak.in/india-startup-funding-investment-2015/
 Top venture capital investors list of India:
1.) Sequoia Capital India (Sequoia): They are front runners in the list of venture
capital investors in India. They funded numerous start ups ranging in their business
from financial services, internet, healthcare, technology to outsourcing. They invest
at every stage of the start up starting from seed to growth. They usually invest up to
$1 Million in seed stage, up to $10 Million in early stage and $100 in the growth
stage of a company.
Some of their best investment are Zomato, Just Dial, Practo, Cafe Coffee Day, Citrus
Payment etc.
2.) Helion Venture Partners (Home | Helion Ventures): It was founded in
2006 and they focus on early to mid-stage ventures with over $600 million under
management. They mostly invest in the technology driven and consumer service
business like online services, eCommerce, mobility, outsourcing, etc in India. Helion
usually invests up to $10 Million in a company with revenue of less than $10 Million.
Helion has invested in around 60 companies and some of their best investment are
MakemyTrip, Yepme, NetAmbit, Komli, TAXI For Sure.
3.) Nexus Venture Partners (Nexus Venture Partners): They invest in
companies like mobile, data security, energy, agribusiness, media and consumer
businesses. They may invest up to $500,000 in seed stage and up to $10 Million in
the early growth stage.
Some of their best investment are SnapDeal, Craftsvilla, OLX, Shopclues, Tinyowl,
Delhivery, Housing etc.
4.) Accel partners (Accel): They only invest in internet technology companies in
India. They usually invest in the depending on the opportunity. They invest
from $500K to $50 Million given the nature of the company.
Some of their best investment are FlipKart, Book My Show, BabyOye, Myntra,
Common Floor etc.
5.) Blume Ventures (Reimagining Startup Finance in India): They invest in
companies related to digital media, mobile and Internet companies. They even
provide startup mentoring and support if needed. They might invest around $15
million for couple of years.
Some of companies in which they invested are zipdial, explara, printo,
weareholidays, Taxi For Sure etc.
6.) Intel Capital India (Intel Capital : Venture Capital): Intel which makes
processors has venture fund named Intel Capital India specifically for India. It invests in
companies related to research and development, labs, mobile, digital media etc. They
may invest from $1 million to $100 Million depending upon the company. Around the
world it invests up to $500 million per year.
Some Indian companies in which they invested are Hungama, Healtkart, Indiamart,
Happiest Minds, Snapdeal etc.
7.) SAIF Partners (Home):They usually invest in the companies related to IT,
consumer products and Internet. They might invest around $.5 Million in seed stage and
up to $35 Million in growth stage.
Some of the companies in which they invested are Just Dial, Paytm, Book My Show,
Bluestar etc.
8.) Inventus Capital Partners (Home - Inventus Capital Partners): They have
invest in more than 100 small and big companies worth more than $30 billion. They
invest in varying sector like eCommerce, mobile, financial, internet, healthcare etc. In
first round they might give up to $2 million and in second round up to $10 Million.
Some of companies in which they invested are Policy bazaar, Savaari, Redbus,
Fundsindia etc.
9.) IDG India Ventures (IDG Ventures India): They invest in the companies
related to mobile, internet and software technologies.They might invest from $1 Million
to $10 Million in a company.
Some of companies in which they invested are Myntra, Yatra, First Cry, Flipkart,
Lenskart, Nestaway etc.
10.) India Angel Network (Home Page): They invest in early stage start ups using
strategy of high-risk, high-return. The might invest from 10,000 to $1 Million to a
company and they keep 3 years exit strategy.
Some of the companies in which they invested are Stayzilla, Box 8, Web Engage etc.
List of VCs and Angel funds in India with their key
people that can be a starter.
Accel Partners Anand Daniel, Prashanth Prakash, Subrata Mitra
Bessemer Venture Partners Vishal Gupta, Abhijeet Muzumdar
Canaan Partners Alok Mittal, Rahul Khanna
Catamaran Ventures Arjun N, Bani Bedi
Draper Fischer Juverstien India Mohanjit Jolly
Helion Venture Partners Ashish Gupta
IDG Ventures Sudhir Sethi, Manik Arora, TCM
IndoUS Venture Partners Vinod Dham
Intel Capital Pradeep Tagare
Inventus Kanwal Rekhi, Parag Dhol, Samir Kumar, Manu Rekhi, Rutvik Doshi
IvyCap Ventures Vikram Gupta
Kleiner Perkins
Lightspeed Venture Partners Bejul Somaia, Dev Khare
Matrix Partners Avnish Bajaj, Tarun Davda, Rajinder Balaraman
Mayfield Fund - Navin Chaddha, Vikram Godse, Nikhil Khattau
Nadathur Holdings N S Raghavan
NEA Vamesh Chovatia, Pradeep Srinivas, Bala Deshpande
Nexus Venture Partners Suvir Sujan, Sandeep Singhal, Anup Gupta
Norwest Venture Partners Sohil Chand, Mohan Kumar, Niren Shah, Sumer Juneja
SAIF Partners Ravi Adusumalli, Naiken Veerasamy
Samaa Capital Ash Lilani, Suresh Shanmugham
Sequoia Capital Gautam Mago, VT Bharadwaj, Mohit Bhatnagar, Shailesh Lakhani,
Shailendra Singh, Abhay Pandey
Sherpalo Ventures Sandeep Murthy
Tiger Global Lee Fixel
Unilazer Ventures Ronnie Screwvala, Amit Banka, Abhishek Shah
Ventureeast Sarath Naru, Ramesh Alur

Early Stage
Blue Sky Venture Fund Geetha Bellu
Blume Ventures Karthik Reddy and Sanjay Nath
Clearstone Venture Partners Sumant Mandal
Elephant Capital
Epiphany Ventures Gaurav Saraf
The Habit Fund Sunil Bhargava, Rohit Bhagat
Ixora Ventrues Nikhil Mulchandani
Kae Capital Sasha Mirchandani
Kalaari Capital Vani Kola, Kumar Shiralagi, Rajesh Raju (Hands Free Networks, Lapis,
Magzter, Mettl, Simplilearn, Urban Ladder, Vyome and Zivame)
Nirvana Venture Advisors Rajan Mehra
xx Ojas Venture Partners Raghu Batta, Gautam Balijepalli
Orios Venture Partners - Rehan Yar Khan
One97 Mobility Fund Vijay Shekhar Sharma
Seedfund Mahesh Murthy
Spice Global Lokesh Gupta

Seed Funds
Ah Ventures Harshad Lahoti and Abhijeet Kumar
India Quotient Anand Lunia
Jungle Ventures Anurag Srivastava, Jayesh Parekh, Amit Anand
Kyron Lalit Ahuja, John Cook and Larry Glaeser
Seed Surge Rama Subramaniam

Angels
Alok Kejriwal (Games2Win)
AngelPrime Sanjay Swamy
Chennai Angels
Haresh Chawla
HBS Alumni Angels (India chapter)
Hyderabad Angels
Indian Angel Network Rehan Yar Khan (Flora2000)
Mumbai Angels
Myfirstcheque.com Gautam Sinha, Monisha Advani, Prahlad Rao
Rajan Anandan (Google India)
Seeders.in Abhishek Rungta
Veddis Advisors Vikrant Bhargava
Vishal Gondal (Indiagames)
YourNest Sunil Goyal

Incubators
500 Startups Dave McClure, Paul Singh, Pankaj Jain
5ideas.in Pearl Uppal and Gaurav Kachru
GSF India Rajesh Sawhney
Morpheus Sameer Guglani and Nandini Hirianniah
The Startup Centre
Startup Village
Venture Nursery Ravi Kiran, Shravan Shroff
 PROCESS OF INVESTMENT
There are two types of investing process top down and bottom up. A top down approach
to investing looks at broad market conditions, interest rates and other macroeconomic data
in order to decide which sector or sectors may benefit. Then a stock, or several stocks may
be picked from those sectors.

Bottom up investing is favored by value investors. Macroeconomic data and general market
conditions are ignored. The focus is solely on stock selection based on the attributes and
value of a company from balance sheet information, with little or no regard to the normal
business cycle of the market or sector.

A typical value investing process would take the following format:

1. Establish minimum criteria for stock picks

2. Generate Investment Ideas From Stock Screen
3. Perform Detailed Financial Analysis
4. Evaluate The Business And Its Potential
5. Construct Portfolio
Investment ideas are taken from stock screeners where the screen criteria match your
processs minimum criteria for stock picks. Once you have generated some ideas by running
the screen, select a few that you want to investigate not necessarily those that appear at
the top of the screen or are a best match rather, select several stocks from different
industries/sectors.

A detailed financial analysis of each stock is a must; this is part of what is called due
diligence. You must go through each companys balance sheet with a fine-tooth comb and
make sure the numbers all add up, and there are no financial shenanigans. Evaluate cash
flow, return on equity, earnings growth, earnings stability, revenue growth, return on
invested capital, etc.

Evaluate the business. Is the company in a niche market. How big is their moat? Is there
demand for their products? Is this demand affected by current market conditions on a long
or short-term basis? Call the company if you can for more information be sure to ask if
they are aggressively hiring; sometimes this can mean there is pent-up demand.
Whittle down the number of picks based on your answers to the above; and construct your
portfolio. Dont be discouraged if you whittle down to a single stock. Repeat the process in a
month, two months, three months, etc., and build your portfolio over time.

Process of investment
http://www.grahaminvestor.com/articles/value-investing/what-is-your-investing-process/
Common Angel Investment Terms
Seed Capital (Stage)
Just like it sounds, seed capital is the initial capital that funds a business. Seed capital typically
comes from the founder of the company and his or her friends and family.

A seed stage is the first round of capital that is put into a business. This refers to a round that comes
before any large investment rounds have been taken on. It is often during the pre or low revenue
stages of a company. The capital is typically used to help generate more traction on a prototype or
service until it can attract VC's.

Valuation
The valuation of your company represents how much someone other than you thinks its worth. We
say someone other than you because while you may be the person who sets the valuation, until
someone else agrees that the prices is valid, and writes you a check based on that valuation, its not
validated.

Valuation will be the most common term you hear among angel investors. There are two ways the
valuation is represented:

Pre-Money Valuation: This is how much the company is worth before the angel investor puts money
into your company. So if you set your valuation to be $2 million, and the angel investor puts in
$500,000, your pre-money valuation is $2 million.
Post-Money Valuation: This is how much the company is worth after the angel investor puts money
into your company. So if you set your valuation to be $2 million, and the angel investor puts in
$500,000, your post-money valuation is $2.5 million. You just tack on their investment to the
valuation.
Term Sheet
A term sheet is simply a non-binding outline of the terms and conditions in which an investment is
to be made. Its similar to a Letter of Intent in that it indicates a strong interest to move forward, but
its not the same as guaranteeing an actual deal gets done.

Convertible Note
A convertible note is a loan made to a company that can be converted into stock by the choice of the
issuer or holder at certain events. Each note has an interest rate, a maturity date, and may come with
the option to convert at a discount at a future round or time.
Dilution
The effect of giving someone else part of the company's stock is considered "dilution". It means that
you are diluting your equity stake to make room for someone else. When you're worried about
"giving away the company" that's called dilution.

Cap Table
It's short for the "Capitalization Table" and means a detailed list of exactly how much stock each
entity or person owns. Think of it like a spreadsheet that simply lists names and percentage
ownership stakes all adding up to 100%.

Common & Preferred Stock

There are many "classes" of stock that can be issued in a company. Each class may have its own
rights and preferences. Investors typically get Preferred Stock which may give them preferences such
as the ability to get their investment back first before the rest of the Common Stock holders get their
proceeds. Founders and Employees are usually left with Common Stock which typically means you're
the last person to get paid.

Vesting
Vesting is a process by which you "earn" your stock over time, much like you earn your salary. The
purpose of vesting is to grant stock to people over a fixed period of time so they have an incentive to
stick around. A typical vesting period for an employee or Founder might be 3 - 4 years, which would
mean they would earn 25% of their stock each year over a 4 year period. If they leave early, the
unvested portion returns back to the company.

Stock Option Pool

When a company takes on an investment, the investor will usually request (read: insist, strong arm,
force, drop kick) that you allocate a certain percentage of the company's shares to a Stock Option
Pool for future employees. This sounds all well and good, but it comes out of your portion of the
stock, not the investors. Stock Option Pools will range from as little as 5 points of equity to as much
as 20 points.

-JSVM GAUTAM