US-based investment crowdfunding platform AngelList is planning to launch its private single-deal venture capital funds led by top angels, called syndicates, in India.
The syndicates allow experienced technology investors to create a single VC fund that raises money from institutions and sophisticated angel investors.
Utsav Somani, former Delhi chapter lead of LetsVenture and a member of the Indian Angel Network, has been appointed to lead the India efforts. As an adviser to AngelList, he will primarily work on bringing syndicates to India in addition to initiating dialogue with government officials and mapping out the Indian regulatory framework to facilitate its launch in the country, he said in a blog post on Medium.
San Francisco-based AngelList was founded in 2010 by India-origin serial entrepreneur Naval Ravikant along with Babak Nivi. The network claims to have facilitated $360 million in investments for over 1,000 startups since then.
A syndicate pools capital from a variety of investors into a limited liability company that invests in the startup alongside the syndicate lead. AngelList handles the whole process of a syndicate including taxes, documents, accounting, legal and liquidity events. It charges 5% carry on deals done through the platform. The platform has 170 active syndicates.
AngelList also has a startup recruitment section where it claims to have facilitated 16,000 companies to hire 10,000 employees to date. The section is adding 40,000 candidates each month, it says.
Somani is an active angel investor with investments in a number of startups including Tavaga, Bounty, Testbook, Betaout, Zippr, LogiNext, DoorMint and NexGear.