Angel investment platform IPVhas 7,295 investors on its platform.
- Average investments of these angel investors are somewhere between Rs 5-7 lakh per year
- More than 10% of IPV’s investments are in startups across Tier 2 and 3 cities
Technology has democratized many businesses that were previously the preserve of a few. Investing in angels is one such business that has now become relatively more transparent as compared to before and even investors with ticket size of ₹2.5 lakh per year can now become angel investors. As a result, big companies and savvy founders now have far more opportunities to raise capital without the usual detour. It is this philosophy that is the driving force behind the four-year-old angel financing platform
Vinay Bansal, CEO and founder of IPV, discovered some obvious pain points that both investors and startup founders faced with the smallest funding rounds. While the process was tedious for the founders, lack of clarity was a major problem for angel investors. These issues also resulted in a low success rate of
“We decided to solve these problems and started investing in a few startups with a sharp focus so that the founders could grow. We have also given them mentorships. Some of these startups include Milk Basket and Fitso that became very successful.”
IPV decided to do things differently to improve the success rate of startups in India, which also improved returns for investors.
In less than four years, IPV has invested in 140 companies and the IRRs (internal rates of return) are significantly higher compared to many others. India has spawned many unicorns in the past three years as the pandemic has led to innovative models to solve problems created by the lockdowns. India saw 44 unicorns appear in 2021 and the trend continues into 2022, albeit at a slower pace. Interestingly, the startup bug isn’t just limited to the major cities. Today, there is a startup in each of India’s 625 districts and 50% of these are from Tier 2 and Tier 3 cities.
IPV is one of the few players that has such players in mind since 2020. Nearly 10% of its portfolio companies come from the hinterland. Born in 2019, this platform has funded some very interesting startups that no one wanted to bet on – these came from India’s Tier 2 and Tier 3 cities, but solved problems unique to the country’s hinterland. The venture platform is independent of the industry, stage and geography the startup is in. What is important to IPV is the quality of the founder, the idea and the appreciation.
“Great people can come from anywhere and we placed bets on startups that no one bet on in 2020. We believe in great ideas that can come from anywhere, which is why we funded BluSmart in Ahmedabad and Multibhashi in Jaipur. These founders are sharp, smart and hardworking at their core,” explains Bansal.
Thanks to ventures like IPV, television shows like Shark Tank and a media blitzkrieg are helping more startups in Tier 2 and Tier 3 cities.
What also makes IPV unique is that its model for raising capital is broader, which is why its investments are not held hostage to a financing winter or Federal Reserve moves. “We want to continue to democratize investment for average Indians with a ticket size of ₹5 lakh.”
The platform has 7,295 investors on its platform and it continues to grow.
“The way we set ourselves up was to be different from others. We were able to fund even during the pandemic and all these investments today are between Series B and D. We went against the market in 2021 and started to exit our investments. We are not working on the dry powder concept because we get money from salaried investors. Over the past few months, we’ve discounted multimillion-dollar checks. The winters are good for us because we get access to good companies at better valuations. We have to overcome our fear of investing when others are not,” says Bansal.
The average ticket size that the angel investors scrap every year ranges between ₹5-7 lakh. The investors of IPV come not only from India but also from other countries. To invest, the angel investors just need to fill out a form and get started. The process is just as simple for startups in need of funding. IPV will respond to the founders within 20 days of sending an inquiry.
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