Featured on StartupCentral.in Are there any kind of benchmarks around angel investment valuations in India, especially with respect to business plans that are just on paper? First of all, organised angel networks, such as Indian Angels Network, Mumbai Angels or even seed funds rarely fund paper plans. So the real first cheque – Rs 50 lakh or less – comes from FFF (family, friends and fools). To find out what is the right valuation for the first cheque, it would be worthwhile  to study the valuations in later funding rounds. The organised angel networks usually operate between Rs 6 crore and Rs 15 crore pre-money valuations, in post-beta companies. The size of  deals ranges between Rs 1 crore and Rs 4 crore for equity stakes of between 15 per cent and 30 per cent. Seed stage funds also have similar valuations; usually investing less than $1 million (approximately Rs 4.9 crore) for stake above 25 per cent.  Although, of late, some deals have started happening in the $ 2 million (approzimately Rs 9.8 crore) ticket size, post the FFF round. A few have raised even $4-5 million seed rounds for e-commerce SEM budgets, but that may not happen again for a while.

Read more…