Angel Investors for Indian Startups

Angel Investors for Indian Startups

An Angel investor is a person who invests in a business in exchange for an equity stake. Typically, these investors are willing to give you money in exchange for a share of your company. Angel investing is a hot topic among entrepreneurs and was key to the success of many companies that pioneered innovation and new market spaces.

If you're an entrepreneur, you may be considering a range of funding options, including angel investors, to help you grow your company. In India, seeking angel investors is like hunting for a needle in a haystack; you have to filter through a lot of them before you find the perfect one.

There are different types of investors that you can approach depending on where they invest and how they invest.  To be a highly successful entrepreneur, you may have to approach a few investors because each one may specialize in certain industries or foreign markets.  Your success will depend on how well you prepare in your pitch and presentation. For a first-time entrepreneur, approaching an investor is an intimidating process because he/she has years of experience as an investor; however, for an experienced entrepreneur negotiating with investors is expected.                 

Angel Investors Come in a Variety of Forms:

Angel investor is a broad term that refers to a variety of people who invest in various ways, including the following:

1. Family and Friends : Your friends and family are some of your most valuable resources, and many of the most successful startups have begun with just friends, family and dreams.

2. The Idea Investor: The Idea Investor is most likely well-versed in the market you're targeting. This is, in some ways, the best form of Angel Investor because he or she can validate your idea to some extent. Their investment is built around the concept). If you can bring them on board, they can help you establish partner networks and provide sound advice.

3. Return on Investment (ROI) Angels : The ROI angles consider a gain in price to be equal to an imprint made on their already diversified portfolio. In other words, the ROI angels invest in the shares of companies that are doing well in the market. The reasons for investing are diverse, but one thing is certain; each of these investments has a specific financial reward which will either grow or diminish based on the performance of the share during that period.

 4. Corporate Angels:Former business executives who have either been replaced or voluntarily retired from significant organisations make up the majority of these angels. While some investors appear to be investing only for the purpose of profit, they are actually seeking a paid and stable position with the company in which they are investing.

5.High -Tech Angels: Considering their lack of experience, Hi-Tech investors have made large investments in current technologies. Profitability is as important to these investors as the thrill of presenting a new technology to the market.

Angel Investing Sources

Due to the fact that angel investors are often wealthy individuals, it's not easy  for business entrepreneurs to seek investment from them. So, how do you go about locating angel investors? Among the financial options are: 

• Indian Angel Network – Over 279,000 investors are part of this online network. Entrepreneurs can build a profile and use it to showcase their company.
• Angel List - An online portal that assists entrepreneurs in finding investors.
• LinkedIn - Professional social networks, such as LinkedIn, can provide you with a direct line of communication with angel investors.
• Local business associations - Check with local associations to see if they might connect you with an angel investor.
• Incubation Centers : Business incubators are institutions that support entrepreneurs in developing their businesses, especially in initial stages. Incubation centers can set up a direct line of communication with angel investors for you.

Angel Investors' Unfavourable Aspects:

Even though angel investors may seem like the best option, they have a few disadvantages. The first is that most of them want ownership rights and could end up owning a majority stake of your company once they get involved. Another disadvantage is that most of them want to be involved in your business. They typically want to be part of the decision-making process, which can be difficult if you’re the person who’s supposed to make all of those decisions.

Major Turning Point: The year 2021 will go down in history as a major milestone for Indian startups. Not only did several firms go from private to public markets this year, receiving money through initial public offerings (IPOs), but 42 Indian startups also joined the unicorn club.

Since 2014, the startup ecosystem has received over $100 billion in funding, which will be reached in 2021. If we look at the year as a whole, nearly $42 billion was invested in companies, making it the most money raised by Indian businesses in a single year.