India lacks enough angel investors to fund start-ups: Nasscom

New Delhi (PTI): Unlike the west, India does not have enough number of angel investors who can fuel the growth of the country’s thriving start-up ecosystem, industry body Nasscom has said.

'For a successful start-up ecosystem there is need for enough angel investors who can support the budding entrepreneurs from early stage. But this is not happening in India and there is a serious lack of it,' said Nasscom Vice-President Rajat Tandon. DH photo

“For a successful start-up ecosystem there is need for enough angel investors who can support the budding entrepreneurs from early stage. But this is not happening in India and there is a serious lack of it,” Nasscom Vice-President Rajat Tandon told PTI.

“High net-worth individuals and corporate executives among others should come forward and participate in this growth story,” he said. A recent report by Nasscom had said that India ranks third among global startup ecosystems with more than 4,200 new-age companies.

Tandon said, “The case is very different in countries like the US. People are just waiting to invest in some good companies. We should also have something like that.”

“Mainly, investors (in India) are afraid because there is a high risk of failure in these investments and also there is lack of policy for such investments,” he added.

“Why will investors put money in such companies? They need tax benefit and lot of other things for putting in their money. We have already written about this things to the government I am sure that the government is taking right steps in the direction and we can expect something by this year-end,” he said.

In his Independence Day speech, Prime Minister Narendra Modi had announced a new campaign ‘Startup India; Stand up India’ to promote bank financing for startups and offer incentives to boost entrepreneurship and job creation in the country.

“At Nasscom, we are not only encouraging investors but also asking people to mentor start-ups. Like someone has a business of designing, they can help some startups to develop UI and guide them in the process. In return they take some equity,” he said.

“And there are people like Ratan Tata and Azim Premji, who are making a slew of investments and helping these young entrepreneurs. They are the inspiration,” he said.

Ratan Tata has invested in a number of companies including Ola, Snapdeal, Paytm, Urban Ladder and Bluestone. While, Wipro boss Azim Premji has funded companies like Myntra and Amagi, among others, through his investment arm Premji Invest.



  1. Sir, you have mentioned two great names of the Indian Industry; Mr. Ratan Tata and Mr. Azim Premji, the two role models of India. In a book I read recently, among the 100 people who have played the role in changing the world ” 100 Great modern Lives”, only two people were mentioned from India. They were Mohandas Karamchand Gandhi and Jamsetji Tata.

    Both of them were concerned with the humanity, one through his business empire helped millions of people and the Tata name is always shining in the business world. Mahatma Gandhiji gave his life for India, and well honored around the world.

    Both Mr. Ratan Tata and Mr. Azim Premiji are concerned with the suffering world, that makes them very unique in the business world of India. They are not trying to display their car collection in hundreds and the tallest and expensive mansions as greatly successful and accomplished business tycoons, but finding great pride and joy in lifting the hurting humanity. GOD BLESS THEM.

    • Mr. A.S. Mathew,

      I have great admiration for Mr. Rattan Tata and considering his phenomenal wealth and the fact that he is from a khandanni rich family, he leads a very simple life. I have his four letters and two signed photos. I wish him all the best.


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