Role of Angel Investor in Indian Startup Ecosystem

The economic growth story of India in the last two decades is on the fast lane and proving that it is one of the fastest growing economies of the world. The number of startups will increase to 11,500 by 2020 as per the report from NASSCOM, 2015. The present economic scenario in the country is providing access to various sources of finance to the entrepreneurs. Apart from financial resources, production, and human resources are now accessible with ease which has paved way for increase of entrepreneur spirit in India. The World Bank report ranks India at 130 out of 189 countries in the ease of doing business, moving up 12 places from last year which is an indicator of the growing importance of entrepreneurship and its culture in India. This paper aims to provide an overview on angel investor(s) and their role in the Indian startup ecosystem. Initial capital provided to start-ups by angel individuals and angel networks in the country grew by 81 per cent in 2014-15. To realize the estimated growth rate by India, startups should be encouraged by providing the ecosystem. One of the major constraints for a startup is a paucity of financial resources which can be resolved to some extent by encouraging the active presence of angel investor(s) and Angel networks.