AngelList, an online space for startups to raise funds and hire people, has launched its venture and angel fund product in India, reported ET.
The fund will enable individuals to raise mini blind pools of capital and deploy them in a span of 6-12 months.
The Silicon Valley-based AngelList said that it will take care the legal and regulatory aspects of raising capital and investing it, while the funds will be able to use its technology platform to manage their investments.
“People can raise these small blind pools and deploy the capital over the next 6 to 12 months, while still focusing on their day jobs,” said Utsav Somani, Partner at AngelList.
“It’s fully managed by technology and it’s the first time an individual can raise funds without the legal, or regulatory hassles,” the AngelList said.
These angel and venture funds will be structured in such a way that fund managers make 15% of the profits, while AngelList will charge a 5% fee.
The product, which was conceptualised by AngelList in the United States a few years ago, has seen over 50% of all investments on its platform being driven by angel or venture funds.
“The ability of the platform to handle everything through the lifetime of the fund including set up, legal review for investments, taxes, financial reporting, wire transfers and distributions is very conducive for a group of likeminded people to come together and invest large cheques into start-ups,” said Revant Bhate, Treasurer, IIMK Alumni Association.
Another unnammed investor said that the AngelList’s new offering isn’t an alternative to venture funds, but more aligned with allowing individuals to raise between Rs 2 crore to 8 crore and deploy them in early-stage startups. He added that while the AngelList isn’t focused on increasing the amount of capital available for early-stage companies, the byproduct should be just that.
“They (fund managers) can use our approvals, our regulatory clearances, our legal back office and our technology,” the investor added.