Rajasthan Angel Investor Network (RAIN) is a group of Angel investors in Jaipur interested in investing in early stage businesses, which have a potential to create scale. The members of the RAIN have had prior entrepreneurial and/or strong operational experience that they wish to bring to early stage businesses. They share a passion to enable more early stage businesses to create scale and value. By focusing on startups, the RAIN will also address the current acute lack of funds available to early stage companies. The Group believes that early stage businesses require more than just money to succeed. They require close mentoring and inputs on strategy as well as execution. The success rate of early stage businesses can significantly be enhanced if such guidance is available on a constant basis. In line with this philosophy, the Group members collectively commit not just money, but also their time and expertise to investee companies. This document aims to evolve and spell out a framework under which likeminded members can “network” together and work synergistically to achieve certain common objectives in the above areas, while not requiring to operate under the more traditional but rigid models such as VCs, etc. At the same time, it is recognized that, in order to ensure longevity and scalability of this new model, there should be some minimum rules and operating guidelines laid down.
Philosophy behind ‘RAIN’
Rajasthan is a land of entrepreneurs; it has always nurtured the true grit, passion and spirit in many people to become true entrepreneurs. But over the centuries the spirit of entrepreneurship though ignited in Rajasthan, success most of the time has come when these Rajasthanis have shifted bases outside the state.
TiE, the largest non-profit organization to promote entrepreneurship (61 chapters in 17 countries, 13000 plus members, www.tie.org) was incepted in Jaipur in the year January, 2001. Since then the members through its various activities have tried to promote the spirit of entrepreneurship by going to various schools and colleges. TiE, Rajasthan has mentored many students and start-ups and guided them to many successful ventures. Everywhere members of TiE went they were always asked one thing by these young students, who wanted to be Entrepreneurs-
I have an idea, a great business plan, but I have no money! Where can I or how can I get the seed funding, the capital?
TiE members had no emphatic answers to this question, as an organization it did not have the mandate to invest or offer funding. Later, to work out this tight spot an Angel fund in Jaipur was introduced, an Angel fund for entrepreneurial ventures to be set up in Rajasthan, a fund which would fund start-ups from a funding of 10 lakhs to 2 Crore Rupees. A section 25 company was formed under the name of Rajasthan Angel Innovators Network (RAIN) and the fund was launched.
The Goals & Agenda
RAIN already has 30 plus member as investors in who will invest at least Rs. 20 lakhs in 2 years and propose to achive the following goals:
•Direct contacts can be made to the RAIN/TIE office with proposals and business plans and projects will be funded based upon their credibility.
•Monthly deal flow meetings will be held for investors where all qualified proposals will be put forward for investment.
•Investments will be made in companies against equity in the Company.
•The period of investment will be 3 to 5 years and investors will exit at that point.
•The website www.rainjaipur.co.in will have direct links for people seeking funding to file their proposals.