How angel network Faad is building its startup portfolio
Faad Network Pvt. Ltd, which set up its angel network late last year, has added nearly a dozen companies to its portfolio and expects to strike at least one deal a month despite the coronavirus pandemic, its founder told VCCircle.
The angel network has also invested in Huviair, a cloud-based productivity and mining industry, Blu Smart, an electric taxi-hailing and riding platform; and Saarthi, an educational platform to prepare for government jobs. It has invested in two Faad Network sealed these deals as co- investments along with early-stage startup investment platforms like Mumbai Angel Network, Infosys-backed Axilor Ventures, LetsVenture and Venture Catalysts.
The angel group's origin dates back to 2015. It was founded by Verma and Dinesh Singh, and started by providing an array of startup services such as legal, content services and public relations, businessbdocumentation and co-founder matchmaking. Aditya Arora joined the group as an intern in 2016 and was promoted as its CEO in early 2019.
It has more than 300 individual investors. Some of its advisors and investors include Dinesh Mohan Prasad, former head of devices for India and South Asia at Qualcomm; Hemant Dua, former CEO of IPL cricket team Delhi Daredevils; and Sorabh Agarwal, former executive at Copal Partners, which was acquired by Moody's.
Faad Network's first investment was in online eyewear marketplace ClearDekho in 2017. However, it did not involve any equity transactions and it was some time before it evolved into a full-fledged angel network.
The angel network typically invests $50,000 to $500,000 in early-stage
startups at the seed and pre-Series A stages. It has a sector-agnostic approach but is building its focus on ed-tech, online gaming, and healthcare and wellness. It also aims to invest in startups engaged in augmented reality/virtual reality technologies and digital apps.
Verma said that Faad plans to register an alternative investment fund with the Securities and Exchange Board of India. It would be a Category-I fund under SEBI guidelines, he said. Category-I comprises social venture funds, small and medium sized enterprise funds, infrastructure funds, VC funds and angel funds.
Faad Network joins a list of other angel networks which have played a crucial role at backing early-stage startups that need funds to kickstart their projects.
Karan Verma said the Delhi-based angel network made half of its 11 investments after the pandemic began spreading in March.Last month, VCCircle reported that Faad Network and a few others invested in CloudWorx Technologies Pvt. Ltd, a no code platform for Internet of Things and smart home business.