Angel Investment Bond

“Government has notified the Angle Investment Bond (AIB) Scheme 2020 vide Gazette Notification No. XX dated August YY, 2020. As per provisions of the Scheme, Angle Investment Bond may be purchased by a person, who is a citizen or incorporated or established in the country. A person being an individual can buy Angle Investment Bonds, either singly or jointly with other individuals.

Amount of purchased electoral bond will be eligible for 100% income tax rebate.

AIB can be gifted to any registered start-ups which has been in operations for not less than a year and has not less than ten employees, shall be eligible to receive the Angle Investment Bonds. The Bonds shall be encashed by an eligible Start-Up only through a Bank account with the Authorized Bank.

Investor can get the part equity of the start-up as per their negotiation for the investment bond amount.

It may be noted that Angle Investment Bonds shall be valid for 180 calendar days from the date of issue and no payment shall be made to any payee Start-up if the AIB is deposited after expiry of the validity period. The AIB deposited by an eligible Start-up in its account shall be credited on the same day.”

How can policies be brought in, where public can proactively participate in funding the start-ups?

In my view schemes like above has potential to bring a lot of funds in the start-up ecosystem.

Is it imaginary notification? Yes, as of now!

Is it possible?

Look at the notification* by Government of India to fund the Political Parties through electoral bonds. It has been done successfully.

The only question remains if it can be done for Political Parties, why not for the Start-ups?

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*https://pib.gov.in/Pressreleaseshare.aspx?PRID=1598964#:~:text=As%20per%20provisions%20of%20the,or%20jointly%20with%20other%20individuals.