“How much do I need to dilute while raising an angel round?”
“Will investors agree to this?”
“Is it too low, or am I diluting more than required?”
We get a lot of questions along these lines and thought it’s time to share insights around fundraising and valuations.
To make it easy to digest, in this post, we split the data into two categories.
- First, we look at the funding ask and valuation numbers of the three hot sectors (based on the number of deals done).
- Then we follow up with a macro view of what is happening in the angel fundraising ecosystem.
Angel fundraising ecosystem = ask in the range of INR 1 Cr to 9 Cr (US$146,700 to US$ 1.32 million).
The Data in consideration here includes a sample size of 650+:
- Startups who applied for fundraising on LetsVenture in Q2, FY 16-17
- Funded ventures in Q2, FY 16-17 on LetsVenture and publicly available information
If you are not a Fintech, Healthcare or Enterprise Software, you may want to jump to the second part of the post from here.
A. Valuation and Ask range for 3 hot sectors
The last quarter saw funding across 20 sectors out of which Healthcare, Fintech and Enterprise Software emerged as the hottest ones. #YouKnewThatAlready
So, we went a step further and looked at the range of valuation and funding ask of the companies who demanded investment (demand) and who were funded (supply).
1. Fintech
Fintech was on fire with respect to ‘the startups looking to raise funds’ and ‘startups who successfully raised funds’. The company types were spread across Mobile payments, Trading, SME/Enterprise Payments, Personal Finance and Lending.
Founders looked to raise between INR 0.3 Cr to 13.4 Cr (US$44,000 to US$1.96 million) and valued themselves from INR 2.7 Cr to INR 40.2…