Mumbai Angels Network launches programme to help startups deal with Covid-19 crisis

Mumbai Angels Network launches programme to help startups deal with Covid-19 crisis
Photo Credit: Pixabay
9 Apr, 2020

Angel investor group Mumbai Angels Network (MAN) has rolled a ‘lifeline infusion programme’ to help startups survive the economic downturn caused by the Covid-19 pandemic. 

The programme will offer startups a minimum investment of Rs 50,000, with no upper cap, according to a statement.

"We understand that the current circumstances are completely unprecedented and it's getting increasingly difficult for startups to defend and grow what they have nurtured all this time.

Mumbai Angels understand its responsibility and will create innovative solutions for both startups, as well as investors,” Nandini Mansinghka, co-promoter and CEO, Mumbai Angels Network said.

Read: Coronavirus India LIVE Updates

The early-stage investment group will invest via simple agreement for future equity (SAFE) notes, which are convertible securities. SAFE notes allow an investor to participate in a future equity round in the company without determining a specific price per share at the time of the initial investment.

Additionally, Mumbai Angels Network will get a 40% discount in the follow on round as part of the programme, the statement added.

Started in 2006, Mumbai Angels consists of over 400 members spread across eight chapters of Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Goa, Pune, and Jaipur. It has over 135 investments to its name and 30 exits. The angel network has spent some Rs 150 crores in total so far.

Read: Mumbai Angels backs robotics kit maker for kids WitBlox

Last year in December, the angel network scored an exit from children’s online education platform Funtoot, after parent entity Edusoft got acquired by Reliance Industries-backed online education platform. Also, in December, Hyderabad based Dhruva Space, a startup that provides end-to-end solutions from building small satellites, raised $0.7 million in an angel funding round from Mumbai Angels Network and other angel investors from outside the network.

Comment(s)