India’s top 10 angel investors — call them archangels — have supported and helped build 425 Indian startups over the past 10 years, according to estimates by startup database Xeler8.

That’s a significant figure, given that the startup ecosystem is still in its infancy, and reflects the kind of support that affluent individuals are pouring into it.

Deal making by angel investors overall surged to a record high in 2015. Angel deals accounted for 49% of all funding deals in the year, up from 42% in 2014 and a mere 12% in 2010, according to data from financial research firm VCCEdge. Angel funding crossed the $300 million mark in 2015, up from $196 million in 2014.

Angels are an absolutely critical part of the startup ecosystem, because they come in with funds and expertise at a very early stage in startups’ lives, a stage when they need it the most. Venture capital and private equity funds invariably come in at later stages when they have a clearer picture of a startup’s trajectory.

Others major angels in Xeler8’s list include Anand Ladsariya, founder of Mumbai-based chemicals maker Everest Flavours; Sharad Sharma, co-founder of software product association Ispirt; Zishaan Hayath, founder of Toppr; Rehan Yar Khan, managing partner at Orios Venture Partners; T V Mohandas Pai, Manipal Global Education chairperson; Sanjay Mehta, member of Indian Angel Network; and Rajesh Sawhney, founder of GSF Accelerator.

Each angel has his or her own investment philosophy. Sharad Sharma has invested in close to 30 startups in the areas of tech, cloud and software products. “I approach angel investing through the lens of proxy entrepreneurship rather than stock picking. This means roll-up-your-sleeves mentoring,” he says, and adds: “I’m not a spray-and-pray angel investor. Instead, I stick to my narrow investment thesis. This makes for quicker investment decisions and better value-add to the entrepreneur since I’m operating in my zone of competence.”

Source: The Times of India