The money from 21 angel investors as well as venture funds like Accel Partners was raised on the deal-making platform run by the company founded in 2013 by Shanti Mohan who was earlier a senior executive at HP Labs who teamed up with two IITians Manish Singhal and Sanjay Jha. The platform, widely regarded as India’s answer to the US deal making platform AngelList, has about 750 startups and 375 Indian investors registered on its platform .
“Our collective vision behind this investment is to take the number of seed stage and Series A (first round of venture capital) deals in India from 200 to over 1000 in a couple of years,” said Garg who is also an investor in startups such as StayZilla, social media newspaper Frrole and enterprise software maker OrangeScape.
“Not only will it act as a LinkedIn for India’s startup ecosystem but also generate valuable growth ideas for large MNCs such as Intel and Google who want to grow their business to the next level with innovation,” he said.
The platform which serves as a marketplace for global investors to connect with entrepreneurs of India, aims to close 35 funding deals this fiscal. LetsVenture charges 2-3 per cent of the entire funding as a commission from entrepreneurs , once they receive the money. It also plans to charge investors about 20,000 as annual registration fee.
“Hardly 200-300 startups get funded each year whereas the potential is many folds higher. This money will help us scale up and build our outreach in more cities ,” said Singhal, cofounder and CEO of LetsVenture, who along with his two other co-founders invested 30 lakhs to start the firm last September.
“This platform will enable investible wealth to discover great startups in nook and corners of India,” he said. This is the third deal on the Lets-Venture platform in the last eight months. Earlier Frrole and merchandise ecommerce store Blue-Gape have raised seed funding of about 1.5 crore through the platform.
“Even though we already had two lead investors, we decided to use LetsVenture as it helped to build a syndicate of over a dozen investors,” said Amarpreet Kalkat, cofounder Frrole.” We could choose whose money to take,” he said.
LetsVenture has tied up with Bangalore-based K-Law as its legal partner which helps the startups and investors in drafting term-sheets and shareholder agreements, while they are closing funding.
The world’s largest such platform is San Francisco-based AngelList , founded by US-based entrepreneurs Naval Ravikant and Babak NiviBSE 0.00 %. Like AngelList, Lets-Venture has also started a jobs portal as a service for its startups. It has also started conducting trainings for angel investing in major cities from this month. “We think such platforms can spurt significant growth and standardisation in angel and seed investments in India,” said Subrata Mitra, Partner at Accel Partners, also an investor in the platform.