Why Young Entrepreneurs Find New Startups Attractive?


BANGALORE:  Angel investment is taking off in India; many young entrepreneurs are turning out to be the angels for younger startups. A raft of funding opportunities has been created for the country's entrepreneurs. Gone are those days when high tech and Internet businesses had tough time getting started.

The boom is spreading wide across and most of the angel investing is being done by young entrepreneurs running their own businesses namely Sachin and Binny Bansal of Flipkart, Mu Sigma's Dhiraj Rajaram, InMobi's Naveen Tewari and Snapdeal's Kunal Bahl and Rohit Bansal.

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IIT-graduate Bhavish Aggarwal, co-founder of OlaCabs, a technology backed taxi service startup enlightened that he met Snapdeal’s Bahl at an entrepreneurship event in Mumbai in the initial days of Ola, after a few meetings Bahl and his co-founder Bansal and Hayath decided to fund his company.

Aggarwal said "We're all facing the same challenges and it was great to exchange notes with them. Since then, Ola has raised two rounds of institutional funding from marquee VCs like Tiger Global and Matrix Partners but having mentors like Bahl and Hayath was crucial in the initial phase,” reports The Times of India.

Why these young startups are gaining so much recognition? The reasons are quite clear, startups have little collateral, marginal credit and banks and the old venture capitalists are in no position to trust these early stage startups, even if they do, they will put several conditions which are far too difficult to sustain. 

It is there, the young entrepreneur steps in the scene as their noble angels in true sense with vital seed capital, the lifeblood for a buddy start up.

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