The Chennai Angels (TCA) has struck a deal with the Madurai-based Native Angels Network (NAN) to co-invest on start-ups across Tamil Nadu. As per the agreement, the two will coordinate and plan common pitch sessions on a case-to-case basis.
They intend to not only fund but also mutually support start-ups for select activities.
“The game plan is to ensure that State-based start-ups get access to a large pool of investors,” said R. Sivarajah, founder and CEO of Native Angels Network.
“We are mainly concentrating on investing in early-stage start-ups emerging from small towns of Tamil Nadu. This tie-up will provide an opportunity for our investors to look at projects based in bigger cities and likewise we will work with TCA investors to look at projects in smaller towns,” he added.
At present, NAN has 252 investors across the State from places including Madurai, Coimbatore, Erode, Karur, Thoothukudi and Tiruchi. The network has investors from the U.S. and Japan.
“Tamilians who have settled there are now investing in State-based start-ups,” Mr. Sivarajah said. The network has pumped money into 11 start-ups. Some of these start-ups have even got second and third round of funding from NAN.
“The coming together of two of the largest leading angel networks in Tamil Nadu will benefit promising start-ups across the State gain access to a huge pool of elite mentors and capital for scaling up their early stages of growth,” said K. Chandran, CEO, The Chennai Angels.
TCA formerly known as the Chennai Entrepreneurship Trust Fund, was established in November 2007 with the objective of nurturing and mentoring new generation entrepreneurs. Till date, TCA has invested ₹130 crore across 60 plus start-ups.