By IE&M Research
According to 8th Annual Report on Indian Venture Capital and Private Equity on Startups, “Inspiration and Momentum for the Gladiators,” Indian start-up landscape has been very vibrant in recent years. Total venture investment in startups during 2005 to 2015 is estimated to be around Rs 1,11,700 crore. The average annual growth rate in investment flow in that period is about 42% and over 10,000 startups have received funding. Average annual growth in the number of startups that have been funded in the last decade has been 16%. The average age at which startups get angel funding has consistently decreased from 4.77 years in 2008 to 0.54 years in 2015. A major concern was the low proportion of startups that get funded in India. For example, the percentage of global startups that are able to successfully raise capital in the grocery technology, healthcare and consumer healthcare, and smart home and home improvement are 41%, 52% and 36% respectively. The corresponding percentages for Indian startups are 5%, 10%, and 11%.
The annual growth rate of the number of investments by angel networks made during the 2009-15 period has been about 75%. In a span of seven years, the number of networks has increased 20 times. Average investment received from an angel round by a start-up has increased from Rs 10.63 million in 2009 to Rs 46.76 million in 2015 indicating an annual growth rate of 27%. The average investment made by an individual angel investor has increased from Rs 2.16 million in 2009 to Rs 16.95 million in 2015, indicating an annual growth rate of 34%.