The United States-based angel investor Hiren Patel has set up Entrepreneur Capitalist Unlimited (ECU) India, an incubator company, to explore investment opportunities in Bollywood.

ECU India is looking to invest in projects ranging from $1 million (Rs 5 crore) to $5 million (Rs 25 crore).

"Since I have been a Hindi movie buff, it was natural for me to first venture into Bollywood. Until recently government regulations restricted foreign investment in cinema, but the government has now allowed 100 per cent foreign investment in films," Patel said.

Patel said, "We are not like regular financiers and bankers. An angel investor or venture capitalists do not lend money simply to earn a high rate of interest. A venture capital invests in a project and becomes a partner and co-owner of the project."

"ECU is on the lookout for the right mix or risks and rewards," Patel said adding, "If one has a project that requires funding - be it equity or debt - ECU is interested. And if one has investment capital that needs to be profitably invested in the US, ECU will show you the way."

Bollywood is not the only sector ECU is looking to invest in. It is also eyeing possibilities in the hospitality industry especially restaurants, hotels and real estate.

Industry sources indicated that Patel has met some industry bigwigs such as Ram Gopal Varma, Sohail Khan, Ketan Desai and is almost close to striking deals. Patel, however, refused to comment.

Media analysts say that the filmmaking business is fraught with risks since it is a subjective medium. The people who control the trade are part of a closed cartel.