A $2 M cheque closes in 2–4 weeks in the US but takes about 6 months in India.
- FEMA & RBI compliance slowing every foreign cheque
- An MCA portal that is down or broken half the time
- Multiple investment committees per fund, each adding weeks
- 100‑page SHAs that turn a term sheet into a 3‑month negotiation
I noted SEBI’s new rules effective September 2026 that restrict Angel Funds to raise new capital only from accredited investors, tightening the early‑stage funding landscape.
- Accreditation requires annual income ≥ ₹2 Crore or net worth ≥ ₹7.5 Crore with at least ₹3.75 Crore in financial assets.
- Approximately 650 accredited investors exist in India.
- Sponsors must commit 0.5 % of the investment or ₹50,000 (whichever is higher) per deal.