Telecom Lead India: Startup Village, India’s first telecom incubator, has received the approval from SEBI for its Startup Village angel fund to the tune of $10 million.
The size of the Startup Village angel fund can go up to $20 million with a Green Shoe (over-allotment) option.
The angel fund will address the problem of resource crunch for startup companies across the country.
The focus area of the fund will be telecom / Internet. The fund will start investing once the initial close of $2 million is achieved.
KPMG is Advisor and ILFS is Trustee of the fund.
“The angel fund will be investing not only in the most promising startups located in Startup Village but also in similar enterprises across the country. We are looking to broad-base the investor profile with a large set of angel investors, many of whom might be first time angel investors in India,” said Startup Village Chairman Sanjay Vijayakumar.
Infosys co-founder and Startup Village chief mentor Kris Gopalakrishnan; MobME, the country’s first campus telecom startup; Ravi Pillai, founder of the Rs 16,000-crore Bahrain-based RP Group; and other leading angel investors in India will be part of the fund
Vijayakumar, who is also the co-CEO and co-founder of MobME, informed that the fund would be investing in the early stage category. It would invest between $20,000 and $250,000 into startups.
For higher amounts, the fund would co-invest with other early stage funds.
The fund would leave the choice with the entrepreneur whether he wants to give a board seat or not. There wouldn’t be tag-along/drag-along rights that the fund would take as well.
