Currently, in India, most of the angels invest in any silly e-commerce biz, but not offbeat visionary companies, because
they play only the valuation game. VCs in India have been putting their(not their, but others’/LP’s) money in e-com, based on just one unproven assumption that online users will touch 500 million and external investors will continue to pour in the money.
One blind man leading crowd of blind ?
There is a lot of innovation in India; however, at present, the VC/funding system (most of them funds from US ) is not encouraging innovation but going after , safe, copycat businesses.
Many investors dream of investing early in a future google. But how many of them have the vision, guts and smarts to spot one ? Rewards are proportionate to risk.
When angel investors and VCs use Private Equity models for valuation, and yet want to land grab equity, you know they are going out of business in future as competition comes in. Days are numbered for this species of money lenders.
Any monkey can copy what others are doing. You become great , gain respect only when you do the original that the crowd misses and succeed. Hope to see change in future in this area.