ππͺπ¨ ππ©π’π―π¨π¦π΄ ππ©π¦π’π₯ π§π°π³ ππ―π¨π¦π ππΆπ―π₯π΄ — ππ³π¦ π π°πΆ ππ¦π’π₯πΊ?
From July 2025, Angel Funds in India will function under a revamped SEBI framework, bringing clarity, credibility, and new opportunities to early-stage investing.
Whether you’re an investor, a fund manager, or a startup founder, these changes will affect how you participate in the angel investing ecosystem. The most critical update? Only SEBI-Accredited Investors will be allowed to invest in Angel Funds.
Here’s what you need to know.
π What’s New in the Angel Fund Landscape?
π€ 1. Accredited Investors Only
SEBI has introduced stricter entry criteria. Only investors accredited by SEBI will be permitted to participate in Angel Funds, helping ensure higher quality and more experienced participants in the ecosystem.
πΈ 2. Minimum Investment Reduced
The minimum investment amount has been lowered to βΉ10 lakh (from the previous βΉ25 lakh), making it easier for accredited individuals to get involved in early-stage investments.
π₯ 3. No Investor Limit per Scheme
SEBI has removed the 200-investor cap per scheme, enabling wider participation and deeper pools of capital for each deal.
π 4. Continued Support for Startups
Angel Funds can now make follow-on investments in startups even if they lose their DPIIT-recognized status, ensuring continued support through multiple funding stages.
βοΈ 5. Transparent Deal Flow
All investment deals must now be shared fairly with every investor in the scheme. This brings more transparency, reduces insider deals, and ensures everyone has equal access.
π 6. QIB Status for Angel Investors
Accredited investors in Angel Funds will be recognized as Qualified Institutional Buyers (QIBs) — a status that comes with added benefits and recognition in capital markets.
π What This Means for the Startup Ecosystem
If you’re:
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An early-stage investor, this opens more structured and credible opportunities
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A startup founder, this changes how you engage with angel funds
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A fund manager, this reshapes how you build and manage your fund
These changes mark a bold shift towards a more professional and transparent investment environment.
π§ Are You Ready for What’s Next?
Now is the time to ask:
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β Are you accredited as per SEBI’s new norms?
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β Is your Angel Fund structure compliant with the latest guidelines?
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β Do you have the right setup for fair deal allocation and investor transparency?
If you need help navigating the transition, we’re here to support you.
π€ Let’s Make This Easy for You
We offer full support for:
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Investor Accreditation Process
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Angel Fund Setup & SEBI Registration
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QIB Advisory & Documentation
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Compliance Management & Ongoing Support
π Reach out for a free consultation
+91 93113 47006