Seed Investing in Healthcare Start-Ups in India

healthcare

What is Seed Funding?

Angel investing is also known as seed funding. It is the process of funding an organization at the beginning stage of its life, typically anytime when it is in the initial step. There is no plan, prototype, or even in the trial phase, but with few customers.

Early-stage investors are usually people or groups who invest their own money after assessing what they can gain from the company. The investment will bring in multiple returns, but it also risks losing money if it faces any financial issues.

The angel investors or the seed funders invest in equity because startups are typically young and not suitable for credit. The investment method could be the purchase of a stake in exchange for financing or a right to purchase shares in the future endeavor to raise equity.

The angel investor usually has deep expertise in the startup’s operations and can evaluate an entrepreneur’s potential. Other forms of private equity financing for businesses include venture capital and private equity.

vc funding

What is the significance of Seed Finance vital?

Seed financing is beneficial for new businesses. Below are the benefits of seed financing.

  • It lowers the risk for founders of new ventures.
  • It provides for any insufficient funds.
  • It is an investment source for working capital.
  • It can help expand a business relationship by the introduction of strategic partners.
  • It gives startups the ability to develop and speeds up growth.

Types of seed funding:

Crowdfunding: 

Recently, crowdfunding platforms have emerged as an increasingly popular option for crowdfunding seed funds. These platforms are usually accessible to anyone who wants to support the concept, idea, or even.

Corporate Seed Financing:

It is an excellent source of seed money because startups are more visible due to the large corporate investors. Major companies like Google, Intel, and Apple provide startups regularly with seed financing. These investments can be highly beneficial to startups to develop their reputation.

Angel investors:

These investors put up seed money for a startup in exchange for an equity stake or convertible loan.

Incubators:

In addition to providing small seed capital, they are focused on helping startups by providing training and sometimes also providing offices. Several top universities, such as IITs or IIMs, also offer these services. In general, Incubators do not ask for equity shares from startups.

Accelerators: 

They primarily focus on supporting the emerging companies to scale up instead of keeping them during the early stages of innovation. They also assist with various mentoring programs, training and provide networking opportunities. In contrast to most incubators, accelerators typically accept equity.

Venture Capital funding(VC Funding)

VC Funding India comprises premium investors who invest in new ventures by looking at various aspects like the market, founder’s vision, and growth potential.

Healthcare Sector in India:

The healthcare industry in India includes hospitals and medical devices outsourcing, clinical trials, medical tourism, telemedicine, health insurance, medical equipment. The sector is growing alarming due to private and public players’ increasing coverage, services, and expenditures.

A rising incidence of lifestyle diseases, growing demands for accessible healthcare services because of the increasing costs of healthcare technological advances and the rise of telemedicine, the rapid growth in healthcare insurance coverage, and government initiatives such as E-health in conjunction with incentives and tax benefits have pushed the healthcare market in India.

Major Angel Investors in the Healthcare Sector of India:

Matrix Partners:

With eight portfolio businesses, Matrix Partners is one of the significant Healthcare investment firms active in the Healthcare Space. 

The matrix appears to have an eye on Unit, the specialty center, since it has invested in Mewar Orthopedic, Maternity & Childcare company CloudNine Hospitals. Matrix also invested in Series B and Series B & Series C rounds of Practo in 2015, along with in 2015 Sequoia Capital.

Indian Angel Network:

The tagline is “For entrepreneurs, By entrepreneurs’ Indian Angel Network is the largest group in the country. Angel Healthcare Investors India.

They have invested in six companies in the field of healthcare in India. These include Neurosynaptic Communications Transcell Biologics, Tattva Spa, Consure Medical & Karmic Lifesciences. In the list, Neurosynaptic Communications has its presence in more than India as the most renowned provider of telemedicine and digital health solutions provider but also has operations across South Asia, Southeast Asia, Africa, and the Middle East.

healthcare investors

Nexus Partners:

It is a Venture Capital fund that invests in companies based in either the United States or India. Nexus Partners has invested in five companies within the health sector. Of the five, Lybrate is one big name in the eHealth services area that offers teleconsultations with specialists and super experts.

Nexus Partners has co-invested in the Series A round of Lybrate in 2015 with Tiger Global and Ratan Tata. Another healthcare investment by Nexus Partners, located within India, is Eye-Q, a Gurgaon-founded startup that focuses on ophthalmology.

The growing number of private companies up to Tier-II and TierIII cities is a lucrative investment opportunity in the hospital sector. III cities can be a lucrative investment opportunity. According to the Invest India Investment Grid, more than 600 investment opportunities are worth around $32 billion in India’s medical and hospital infrastructure sub-sector.

Leave a Reply

Your email address will not be published. Required fields are marked *