Angel Fund

Also called Angel Fund AIF

A SEBI-registered Category I Alternative Investment Fund that pools money from angel investors and invests it in startups deal by deal. Since September 2025 a new angel fund may raise only from accredited investors and needs at least five of them before its first close.

Why it matters

Much organised angel investing in India, including many syndicate platforms, runs through angel funds, so their rules shape how a round fills. Each investment into a startup has to come from at least two accredited investors, and a fund can put between ₹10 lakh and ₹25 crore into one company. Funds registered before 10 September 2025 have until 31 March 2027 to stop taking money from investors who are not accredited.

For example

An angel platform's fund offers a deal to its members; twelve accredited investors opt in, and the fund invests ₹1.2 crore in the startup as one line on the cap table.

Go deeper

Angel Fund Registration in India: The Revised SEBI Framework Treelife · guide A July 2026 guide to SEBI's revised angel fund framework: accreditation, the five-investor first close, and the ₹10 lakh to ₹25 crore limits per company. It predates SEBI's extension of the deadline for existing funds to 31 March 2027. Open treelife.in →

Sebi extends angel fund compliance deadline Outlook Money · article A news report from 8 September 2026 on SEBI moving the deadline for angel funds registered on or before 10 September 2025 to 31 March 2027. Open outlookmoney.com →

Related terms

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