Angel & VC Funds
Planting an orchard, not buying fruit. Most saplings will not make it. The few that do bear fruit for a generation, and one great tree can pay for the whole orchard.
Category I AIFs, venture and angel funds, investing in early-stage companies. Returns follow a power law. Many investments fail, most muddle through, and one or two winners are expected to return the whole fund. Patient, decade-long money at the frontier of risk.
By Yash Jhaveri, Founder & CEO, Beyond
Beyond · JSL Wealth Management · Vadodara · ARN XXXXX
Last reviewed September 2026 · Regulatory position as at September 2026
The job it does
- Participation in India’s startup ecosystem with professional selection
- Truly uncorrelated, decade-horizon compounding
- For business families: a structured window into new-economy models
Why people use it
- Diversified exposure vs writing individual angel cheques
- Professional diligence, board access, follow-on discipline
- Vintage-year diversification possible across commitments
What can go wrong
- Longest lock-in of any structure — 8–12 years with capital calls
- J-curve: early years show losses before winners mature
- Manager dispersion is the widest of any category
Quick answers
What is the minimum investment in Angel & VC Funds?
₹25 L (angel) / ₹1 Cr (VC AIF). Typical horizon 8–12 yrs; liquidity 8–12 yr fund life.
How is a Angel & VC Fund taxed?
Cat I AIFs are tax pass-through — gains taxed in your hands per the underlying (unlisted: LTCG 12.5% after 24 months). Fund deducts TDS on income distributed.
What can go wrong with Angel & VC Funds?
Longest lock-in of any structure — 8–12 years with capital calls. J-curve: early years show losses before winners mature. Manager dispersion is the widest of any category.
Can an NRI invest in Angel & VC Funds?
Open to NRIs; repatriation and TDS mechanics need structuring review before commitment.
Does Angel & VC Funds belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
Education, not advice. We may earn referral fees when you invest through us. Full disclosures