Overview

MUMBAI ANGEL INVESTMENT NETWOTK (MAIN) is a leading angel investment group based out of Mumbai with more than 1000 active investors. The idea of MAIN is to provide equity capital with the prime focus on nurturing and mentoring new generation entrepreneurs. The angels have a vast knowledge of the industry and financial clout. MAIN does not restrict their investments to a particular sector or industry. The big advantage of being a MAIN investee is that, apart from very high quality mentoring, the investors are able to handhold the entrepreneur through the life cycle of fund raising as well and open doors to customers and partners of very high order. Besides providing capital, MAIN members act as mentors for the green horns venturing into the world of business. MAIN has among its members several Angel Investors who are available to partner MAIN on larger outlays. Angel Investments bear extremely high risks and are usually subject to dilution from future investment rounds. As such, they require a very highreturn on investment. Because a large percentage of angel investments are lost completely when companies fail, professional angel investors seek investments that have the potential to return at least ten or more times their original investment, through a definedexit strategy. Current 'best practices' suggest that angels might do better setting their sights even higher, looking for companies that will have at least the potential to provide a 20x-30x return over a period. After taking into account the need to cover failed investments and the multi-year holding time for even the successful ones, however, the actual effectiveinternal rate of return for a typical successful portfolio of angel investments is, in reality, typically as 'low' as 20–30%. While the investor's need for high rates of return on any given investment can thus make angel financing an expensive source of funds.