Angel investment platform Inflection Point Ventures (IPV) has invested over 20 crores in the last 60 days into eight startups and its plans are only getting more aggressive. At a time, when investors are holding on to their money and even the likes of SoftBank are taking a ‘cautious approach’, IPV says it has the ability to invest in one or two startups every week.
“While we don’t have targets, we are looking to invest in 40-50 startups this year,” Vinay Bansal, co-founder of IPV told Business Insider.
Despite the coronavirus pandemic, they are happy to invest in startups. “We are not moved by greed or fear. In fact, we see this as a great opportunity to invest in startups where we might not have got the opportunity to invest otherwise,” he said.
In the past few weeks, they have invested in ecommerce startup MilkBasket, mediatech startup Toch, healthtech startup Phable, edtech startup Pedagogy, food and beverage startup Fabbox.
IPV was founded just 18 months ago by Vinay Bansal, Ankur Mittal & Mitesh Shah. From 283 investors on their platform in 2018, today they have over 1700 investors who are all CXOs from different companies. Some of the investors on its platform are Amit Dalmia (Blackstone), Prakash Iyer (Haldiram Group), Dhianu Das (Alfa Ventures), Anirudh Damani (Artha Ventures), Deepak Chandran (Wipro Consumer Care and Lighting), Rahul Bothra (Swiggy ), among others.
The minimum ticket size for an angel to start investing has been kept at a low entry point of ₹250,000.
“The platform has been designed in a way that we can democratize the way investors can invest in startups,” said Bansal.
Due to the large group of investors, they don’t have an investment thesis and are sector agnostic. However, here are the three pillars of evaluation
- Founding team has to be good – with great expertise, insight as well as execution.
- They must be operating in a business area which is the need of the hour and the business can scale and also where the customer is willing to pay.
- Investors are okay to invest at a fair valuation and stay away from large valuation companies.
Every week they look at 25 startup pitches but only a handful make the first cut. “We typically allow only one or two startups to present to a large investor base. The interest from each individual investor is captured and then the investment happens from 40-50 people who all get equity. Then they start coming together every month virtually and help the startup scale,” explained Bansal.