Early-stage investor network FAAD has received the approval of SEBI for a Category one INR 300 cr Alternative Investment Fund (AIF).
The network, which is sector agnostic, will build the war chest over the coming months to invest across sectors in early-stage pre-seed to Series A technology companies. FAAD is keen to have a special focus on healthtech, agritech, deep tech, and cleantech space.
While the funding winter has struck growth stage capital, the early-stage start-up investment scenario continues to look upbeat with more than $2 Bn in deals seen in the first quarter of FY22 for pre-Series A and Series A companies. As per the funding data as recent as November 2022, the bulk of the deals has been led by early-stage companies.
Founded in 2019, FAAD has invested over INR 75 cr in 60+ startups across a multitude of technology sectors, with a minimum cheque size of USD 50K to USD 1 Mn. Some of the portfolio companies include Blu Smart, Battery Smart, Hesa, WCube, Cleardekho, Huviair, and Beyond Snacks among others.
The angel network has been co-founded by Karan Verma (Director) and Dr Dinesh Singh (Director). Aditya Arora joined FAAD in 2018 as the CEO.
Director Karan Verma said, “There is a new wave of Angels, HNIs and VCs who believe deeply in the value addition that technology-led innovation can bring to society and are always on the lookout to back entrepreneurs who can lead the disruption. While a lot has been said about the funding winter in the startup ecosystem, when it comes to early stage companies, the enthusiasm for capital support continues to be on the rise.The FAAD network also draws well-meaning investors who want to assist and support startups beyond just funding. We are gearing to launch the AIF and see it as a strong force that will fuel young startups with the combined energies, support and capital from our growing network of investors.”
Co-founder and Director Dr. Dinesh Singh said, “FAAD is one of the finest go-to investor networks for pre-series A and Series A startups to build and grow their business ideas. The reason why early stage ideas continue to receive capital and network support is that over time the quality of innovation and the business acumen of new entrepreneurs has evolved which instills a lot of confidence among angels, HNIs and VCs to not shy away from early bets.”
FAAD recently obtained the SEBI license to launch the AIF. The network was advised on the AIF set-up by Rajat Nandwani and Sidharth Dugar representing, Accountables, Manick Wadhwa, Director, SKI Capital, and Akshit Goyal, Partner, JKGA Law.
The community of investors comprises 1600+ Angels, High Networth Individuals (HNIs) and Venture Capitalists (VCs) across India, Singapore, Dubai, the US, the UK and Canada.
The network brings a robust screening mechanism for investors looking at making early bets in technology companies, offers an investor syndicate on deals to share risks, improves portfolio diversification and provides access to good deals. Some of the notable co-investors in FAAD’s portfolio companies include Tiger Global, Blume Ventures, 9Unicorns, Chiratae Ventures, Orios Venture Partners, and Pentathlon Ventures among others.