FAQs
Investors
Startups
1. What is Launch Capital's Purpose?
Launch Capital serves as a platform where private investors, known as Angels, come together to provide capital to startup ventures in exchange for ownership stakes in these enterprises.
2. How Does Launch Capital Invest in Startups?
Launch Capital invests in startup enterprises through subscriptions to their equity share capital. Investment instruments may include equity or other convertible instruments permitted by SEBI (Securities and Exchange Board of India). Launch Capital conducts these investments through a Category-1 Fund registered with SEBI.
3. Who Can Become an Angel Investor with Launch Capital?
To become an Angel Investor with Launch Capital, you must meet the criteria outlined by SEBI, which includes:
- Committing a minimum investment of Rs. 25 lakhs over a 5-year period.
- Having a minimum net worth of Rs. 2 crores (excluding the value of your primary residence) for individuals (Rs. 10 crores for LLPs/Companies).
- Demonstrating prior experience in startup investments or entrepreneurship.
- Possessing a professional background with at least 10 years of experience.
4. What Are the Risks of Investing in Startups?
Investing in startups is considered high-risk due to their early-stage nature. These ventures face inherent risks, as their novel business models may or may not succeed. They may encounter challenges securing follow-on funding, face regulatory issues, or be affected by unforeseen internal or external factors. It's crucial to understand that Angel investments lack liquidity, making exits challenging. Investors should allocate funds they are willing to accept the loss of.
5. How Can I Mitigate the Risks of Such Investments?
To mitigate risks, diversify your portfolio by investing in multiple startups. While Launch Capital exercises caution in investment decisions, investing in startups remains high-risk. Only commit capital you can afford to lose.
6. What Is the Investment Timeframe?
Angel investments are typically long-term, with a maturity or exit period of 3 to 5 years or longer. Patience is essential in this investment venture.
7. How can I register with Launch Capital?
To register yourself with Launch Capital as an Investor, sign-up using the form
1. How do I submit my startup for consideration by Launch Capital?
Visit our "Submit Proposal" page and provide details about your venture. Our team will review your submission, and if selected, you will be invited for a pitch session.
2. What criteria does Launch Capital look for when evaluating startups?
We evaluate startups based on innovation, market potential, scalability, and the expertise of the founding team. A compelling pitch and a well-defined business strategy are crucial.
3. How long does the evaluation process typically take?
The evaluation process duration varies, but we strive to provide timely responses. Shortlisted startups will be contacted for further discussions.
4. What types of startups does Launch Capital invest in?
Launch Capital invests in a diverse range of startups across various industries except for Liquor, Online Gaming and Crypto Currency. We are particularly interested in ventures with innovative ideas and significant growth potential.
5. What level of involvement can startups expect from Launch Capital after receiving funding?
Launch Capital is more than just an investor. We provide hands-on mentorship, strategic guidance, and access to our network to support your long-term success.
6. Is there a minimum funding amount that startups can apply for?
Launch Capital does not enforce strict minimums, but we encourage startups to align funding requests with their business needs. The minimum funding amount typically starts at 50 lacs.
7. What information should be included in my startup proposal?
Your startup proposal should provide a clear overview of your business, market potential, revenue model, and the team's expertise. Be concise yet comprehensive in presenting your vision.
8. Can I schedule a meeting with Launch Capital to discuss my startup in more detail?
At this time, we handle initial evaluations through our online submission process. If your startup is shortlisted, we will contact you to schedule further discussions.
To register yourself with Launch Capital as an Startup, sign-up using the form
