09Dec / 2016
For LetsIgnite Roadshow #7 we made a pit stop in Hyderabad: the city of great biryani, beautiful Mughal architecture and now a booming startup ecosystem. In 2012, Hyderabad accounted for 3% of the city-wise share of angel group investments by value in India. In 2016, that share has grown to 9%. *
Excited by this growth and interested to learn more, we passed out a survey during our roadshow and asked angel investors of Hyderabad to tell us more about how they did business. A total of 45 angel investors with diverse experience and investment exposure attended. The marquee speaker for the event was Sanjay Mehta who shared his investment philosophy, his successes and getting exits from angel investments (click here to see his presentation that went live on Facebook from the LetsVenture page).
40% of attending investors had been angel investors for 1 year or less. 26% of the attending investors had more than 4 years of angel investing experience. 19% of attending investors had 2 years of angel investor experience and 15% of the attending investors had 3 years of angel investor experience.
Out of the surveyed, 60% percent of angel investors have invested in less than 2 companies, 27% percent in 3-5 companies and only 13% percent in more than 6 companies.
We found that 50% of the Angels preferred to co-invest in deals, 20% of the investors lead once in awhile, 16% lead more than 50% of the deals and 14% lead more than 25% of the deals.
78% of Angel investors have seen 0 exits from the startups they have invested in, the remaining 22% have seen more than 1 successful exits with two investors who had 10+ exits. As the trend goes, investors with greater experience, who have been in the game longer, have more exits.
52% of the investors said Hyderabad was not their primary source for deal flow while 48% of them said that it was. It is interesting to see an almost balanced response to this which accounts for the rise of digital investment platforms, local angel networks and an increased number of hyper-local startups.
Healthcare was the hottest sector of interest with 82% of investors showing interest in seeing more healthcare/ health tech startups. 76% of the investors showed interest in some kind of agricultural technology. 47% of investors showed interest in automation and Artificial Intelligence (AI) for homes and industry. 39% of the investors expressed interest in food and beverage startups, education technology and robotics.
If you thought this was interesting, stay tuned for a larger roadshow report that will analyze the data insights at an ecosystem level from the 11+ city roadshows and 300+ Angel Investors across India. If you have any questions or feedback reach out to firstname.lastname@example.org.