Interlocking interdependencies is something that Rajan Srikanth uses quite often while describing the Keiretsu Forum, a US-based angel network that is all set to begin its India operations.

The forum is probably the largest angel network group, with about 1,400 members in 34 chapters across three continents. The members draw upon expertise from not just the chapter they belong to, but from other chapters as well. It is an entrepreneurial community, says Srikanth, who is the Co-President of Keiretsu Forum Chennai & Singapore. Founded in the Bay Area in the US in 2000, the Keiretsu Forum has so far invested close to $500 million in 450 companies, with the average funding hovering around $1 million per start-up.

Membership by invitation Membership to the forum is by invitation and Keiretsu looks only for those who have the money to invest and the time to spend in mentoring and nurturing the start-ups. It is in drawing upon the expertise within its community of investor-members that the forum’s strength comes in. That is also the basis of the Japanese term, Keiretsu, which describes a group of affiliated corporations with broad power and reach. Angel investing and investors are crucial for any entrepreneurial ecosystem. The investors provide funds to the start-ups at an early stage, helping them overcome a crucial hurdle.

The Chennai chapter, the forum’s 34th, has got 10 members and Srikanth hopes this number will grow to 40 by the year-end. Its members in India will provide early-stage capital ranging from ₹50 lakh to ₹5 crore. They can help entrepreneurs raise higher amounts through syndication with other chapters worldwide.

A recent study by Nasscom, the Indian software industry’s association, has shown that nearly 800 companies are set up in the country every year. In the next five years, the study forecasts that India will have 11,500 start-ups, employing about 2.5 lakh people. If these start-ups are to grow and succeed, they need not just funds, but mentors too; people with experience and expertise to help them navigate the journey from a mere idea to a successful venture.

The facilitator He says the Keiretsu Forum does not invest in start-ups, but facilitates the process of getting applications, screening them and putting up the short-listed applications before its chapter members for investment decisions. Its members are trained on how to conduct due diligence; the forum has a 600-page manual for that.

The forum, according to him, is a for-profit organisation, getting its revenues from membership subscriptions, sponsorships of chapter meetings and other events, and the companies that approach it for funding pay a small fee.

It gives its members access to deals across its network.

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