India's Angel Investments Down 44% in 2025 as Regulations Reshape Funding

• Angel investments in Indian startups declined 44% in deal count and 28% in capital invested in 2025.
• Regulatory changes, including tighter eligibility and higher financial thresholds for investors, are cited as the main reason for the decline.
• The new rules have made it harder for early-stage founders to secure funding, especially without a clear lead investor.
• Some experts believe the decline is a "clean-up" removing ultra-small ticket investments, leading to more disciplined founders.
• The market has become smaller, slower, and more concentrated, impacting access to early-stage capital.

Why It Matters: Regulatory overhaul is shrinking India's angel investment market for startups.