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Last updated: 2 October 2026
Angel investors and angel networks back startups at the earliest stages. Expertvuw’s team helps founders prepare for angel conversations — deck, model, cap table and records — and completes the legal and compliance steps when the round closes. We do not guarantee introductions or funding.
Angel investors are typically high-net-worth individuals, founders and professionals who invest their own money in early-stage startups, often through angel networks or syndicates. Since 2025, SEBI-registered angel funds (a sub-category of Category I AIFs) can accept investments only from accredited investors, and invest between ₹10 lakh and ₹25 crore per startup.
Angel rounds are usually structured as equity or compulsorily convertible preference shares (CCPS), or as iSAFE and convertible notes when the valuation is deferred. Any issue of shares must follow the private placement or preferential allotment rules of the Companies Act, 2013, including valuation. Money from non-resident angels must meet FEMA pricing and reporting rules. For DPIIT-recognised startups, the earlier “angel tax” under section 56(2)(viib) was abolished from assessment year 2025-26.
Angels look for a strong founding team, a clear problem and early traction — and they expect clean records, founder IP assigned to the company, and a simple cap table.
Basis: Companies Act, 2013 (sections 42 and 62); SEBI (AIF) Regulations, 2012 as amended for angel funds (2025); FEM (Non-debt Instruments) Rules, 2019; Finance (No. 2) Act, 2024 (abolition of angel tax). Last updated: 27 September 2026.
Since 2025, only accredited investors can invest in angel funds.
Angel funds invest ₹10 lakh to ₹25 crore per startup.
Equity, CCPS, iSAFE or convertible notes.
Share issues must follow Companies Act procedures.
Section 56(2)(viib) abolished from AY 2025-26.
FEMA pricing and reporting apply.
Early rounds often slow down on basics.
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Angel rounds connect with these services.
Convertible instruments.
Investor pitch decks.
Founder equity and IP.
Preparing for VC rounds.
Review records and materials.
Tidy cap table and documents.
Choose the instrument.
Review the term sheet.
Approvals, allotment and filings.
FEMA and post-closing compliance.
Keep investors informed and records clean.
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Share your query and our team will reply during business hours.
Individuals, often experienced founders or professionals, who invest their own money in early-stage startups.
SEBI allowed only accredited investors to invest in angel funds and set investment limits of ₹10 lakh to ₹25 crore per startup.
Section 56(2)(viib), known as angel tax, was abolished from assessment year 2025-26.
Equity, CCPS, iSAFE or convertible notes, depending on valuation and investor preference.
Expertvuw focuses on readiness and compliance; it does not guarantee introductions or funding.
ACS – Director, Expertvuw Management Pvt Ltd
Fundraising support is provided by Expertvuw’s team. Expertvuw does not guarantee funding, does not solicit investment from the public and is not a SEBI-registered intermediary; valuations and certifications come from independent eligible professionals.