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How to invest in startups in India

The four ways to do it, how it works step by step, what to check first, and the risks.

Vijay Singh Rathore · Co-Founder & CEO
26 Oct 2026 · 5 min read
Investors listening to a founder at a Soonicorn pitch session
In short
  • Individuals in India can invest in early-stage startups, usually alongside other angel investors.
  • Four routes: directly, an angel network, a syndicate, or an investment platform.
  • It is long-term (often 5–8 years) and high-risk. Spread your money across several startups.

Can you invest in startups in India?

Yes. Startups raise their first rounds from individuals, called angel investors, before larger funds come in.

You back a young company with your own money and get a small stake in return. If the company grows, so does the value of your stake; if it fails, you can lose what you put in.

Four ways to do it

  1. Directly. You find a startup, negotiate and sign on your own. Full control; all the paperwork is yours.
  2. Through an angel network. A group shares deals. You still invest and sign separately for each one.
  3. Through a syndicate. A lead picks the deal; members invest together and appear as one entry on the startup's cap table. How syndicates work.
  4. On an investment platform. Curated deals, pitch calls, KYC, e-sign and your portfolio in one place. This is what Soonicorn does.

How it works on a platform, step by step

  1. Sign up and complete KYC once. You're ready for every deal after that.
  2. Read the deal page. Memo, round terms and data room. Fees and the minimum amount are shown per deal before you commit.
  3. Join the live pitch call. Hear the founders and ask your own questions.
  4. Commit and e-sign. Pick your amount and sign online.
  5. Pay the capital call and track your portfolio. You get a notice with reminders; once paid, your holding shows in your portfolio.

What to check before you invest

  • The founders: have they built something like this before?
  • The problem and the market: is it real, and big enough?
  • Traction: customers, revenue or usage so far.
  • The terms: valuation, fees and your rights, all on the deal page.
  • Your spread: how it fits with your other startup investments.

The risks

Most early-stage startups fail. Your money is locked in for years, often 5–8, and you may not be able to sell before an exit. Returns are not guaranteed and you can lose your entire investment. Only invest money you can leave untouched, and spread it across several startups.

Who can invest

Resident Indians can invest. NRIs can too, through an NRO account, subject to FEMA; eligibility is confirmed during onboarding. From 1 April 2027, new investments through angel funds need an Accredited Investor certificate. Soonicorn can file it for you.

Questions investors ask

Can normal people invest in startups in India?

Yes. Platforms and syndicates let individuals back startups alongside other angels, with the paperwork handled online.

How much do I need to start?

It depends on the deal. Each deal on Soonicorn shows its own minimum on its deal page.

When will I see returns?

Startup investments are long-term, usually 5–8 years, and you can lose what you invest.

Is it true that most startups fail?

Yes, most early-stage startups don't succeed. That is why angels back several companies rather than one.

Vijay Singh RathoreCo-Founder & CEO of Soonicorn Ventures and a Chartered Accountant. He has backed and built early-stage companies, and set up Soonicorn so investors and founders could do the whole deal on one platform.