role of angel investment
Post on 14-Sep-2014
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Franchise Private Equity Conclave
Role of Angel Investment in
franchise and retail industry
Mumbai Angels
Sasha Mirchandani
Co-Founder, Mumbai Angels
Managing Director, Blue Run Ventures, India
http://www.mumbaiangels.com
Sasha Mirchandani – Mumbai Angels
Bringing operational excellence & scaling experience to funding start-ups
Mumbai AngelsMumbai Angels
Mumbai Angels
What is an Angel Investor ?
Anyone who provides private capital to a (non family) start-up
• Usually the first outside investor
• Invest with the expectation of a financial return
• Invest usually locally and regionally
Mumbai Angels
• Participate actively in the investment process
• Usually care about the entrepreneurs and the companies
they invest in / interested in building personal
relationships with companies & employees
• Offer advice and guidance to founders
Angel Investors in the US
* Source: Angel Capital Association Presentation by Ian Sobieski, Band of Angels, Oct 2007
Mumbai Angels
Estimate Of
Informal
Investors
Estimate of Active Angels
(Center For Venture Research)U.S.
Millionaires
225,000
Rising Popularity of Angel Investing
3x Growth in North American Angel Organizations in 7 yrs
Mumbai Angels
Angel Investing – Investment FocusInternet / Software lead other segments
* Source: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-06 data)
Mumbai Angels
Angel Investments in Perspective
In the Context of Venture Capital
Mumbai Angels
* Source: University of New Hampshire Center for Venture Research, Price Waterhouse Coopers
Venture Capital is Highly ConcentratedSilicon Valley (40%) and NY (7%)
account for nearly half of venture investment
* Source: NVCA Research 2009; PriceWaterhouseCoopers
Mumbai Angels
Silicon Valley Success Story“Internet is the Greatest Legal Wealth Creation in History”
* Source: NVCA Research 2009; PriceWaterhouseCoopers
Mumbai Angels
• Consumer internet still offers best path to high multiple returns
• Key differentiator: capital efficiency
• Virtually all the big successes were first backed by angels
Where should Angels invest ?
Finding Great Companies is the Basis of Angel Investing
Mumbai Angels
What Does It Take….
……To Be A Successful (Angel) Investor
Mumbai Angels
Growth is Key to Successful InvestingKey: Target the Fastest Growing Internet and Mobile Markets
Mumbai Angels
Growth is Happening FasterExample: Disruptive Platforms - Time to Success much Shorter
Mumbai Angels
Next Big Things
Mumbai Angels
Drastic Changes in Exits
Start-ups Need Less Capital, Exits Shrinking…
Mumbai Angels
Food For Thought
What will it take to have an entry from India here ?
Mumbai Angels
