Private Investment in India 

Fundraising is an essential factor that determines the success of a startup. If fundraising doesn’t happen on time, then there are many chances that the startup might have to shut the shop. Thus, people who back these startups early are called angel investors or groups of angels in the angels’ Network. 

Like in other countries, startups in India like to go to angel investors for initial investments. Startups prefer angel investors in India compared to VCs. It is because angel investors ask for lower equity and the chances of rejection are lower than VCs. 

While other options like investment banks, family offices, and private companies exist, angel investors in India offer unique market opportunities and mentorship. 

List of Angel Investors in India

This list of angel investors in India is not exhaustive and mentions a few of India’s top angel investment companies.

ah! Ventures

This angel of India was founded in 2012 and brought together investors and businesses. It creates opportunities for wealth creation for both companies and investors. This angel investor network has domain experience, industry, skill, and customized services to help investors and startups. 

AngelList India

This angel investor network has its headquarters in Silicon Valley and entered India in 2018. It launched its popular platform “Syndicates.” Syndicates allow investment opportunities to investors in tech startups. It includes angel investors and experienced VCs. 

BITS Spark

BITS-Pilani alums created this angel in India. It started in 2015 and aimed at getting university-graduated students to get mentorship and funding. Faculty members, university officials, and students help startups with Spark. 

The Bengaluru Angels

This angel network helps investors and startups alike. Startups and investors can build, interact, and explore business relationships. It allows startups to grow in their initial phase through mentorship, funding opportunities, and support. 

Calcutta Angels Network

This angel of India is also known as CAN and started in 2013. It is east India’s first angel investor network. It has around 75 members and has invested in 11 startups throughout India. They announced a partnership with the Mumbai Angels in 2018 and are working together. 

Conclusion

Angel investors are called angels for a reason. They help cash-strapped startups with funding and guidance to reach great heights. Without angel investors, many startups would cease to exist and grow. 

FAQs

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Who Is an Angel Investor?

An individual with capital who contributes to small or upcoming firms in exchange for a share of the firm’s assets or profits is called an angel investor (also known as a private investor, seed investor, or angel funder). Angel investment can be one-time or periodic. It aims to help the business get off the ground or expand and flourish in its early phases.

Venture Capitalists Vs. Angel Investors

Angel investors and venture capitalists are two prevalent alternative sources of finance. Angel investors and venture capitalists are usually interested in innovative startup companies and prefer technology and scientific enterprises. 

However, there are significant differences between venture capitalists and investors.

• An angel investor is self-employed, whereas a corporation or firm employs a venture capitalist.
• Angel investors usually contribute between $25,000 and $100,000, though they may invest more or less depending on the circumstances. The average amount raised by angels in a group might be above $750,000. On the other hand, venture capitalists invest an average of $7 million in a firm.
• Angel investors focus on early-stage companies, providing capital for late-stage technology growth and developmental market penetration. Venture capital firms invest in both initial and mature businesses depending on the venture capital market.

How to Prepare For an Angel Investor Meeting?

Here are some tips that can help you prepare for an angel investor meeting:

Ensure That You Have a Sound Business Strategy

Your business plan explains how you’ll transform your business concept into a viable enterprise. It details the techniques you’ll use to develop and succeed, as well as the amount of money you’ll spend on each segment. Someone investing money in your business must believe that it will grow, and your business plan presents your case.

Prepare a Pitch Deck For Angel Investors

The components of your pitch deck include your vision, current traction, market opportunities, income potential, who’s on your team, competition analysis, and how you stand out.

• Share your Financial Statements: Your business strategy and pitch deck should include financial analysis, cash flow projections, and your plans to profit from your business activities. It’s always good to back up your claims with actual figures and statistics. Investors will want to know how much you’re spending, what your predicted expenditures are, and how you plan to spend their money.
• Understand the size of your market, your rivals, and your industry: If another firm has had significant success with a similar concept, a fantastic idea may falter in implementation. Investors are aware of this and anticipate that business owners such as yourself would offer detailed competitive research. It would help to describe how you differ from rivals and plan to prosper in your sector despite significant competition.

Maintain an Open Mind to Criticism

The majority of investors have been doing this for quite some time. They have firsthand knowledge of what works and what doesn’t. Instead of becoming defensive in the face of criticism, consider your investor’s feedback as an opportunity to grow.

Do Some Research On the Investment You’re Considering

When pitching investors, you may be tempted to concentrate only on yourself and your company. However, the most substantial presentations demonstrate due diligence in researching about the businesses that may invest in you also. That implies you should do your homework on the investor and show what you’ve learned about them throughout your meeting.

Angel Investors in India

Many angel investors are now using equity crowdfunding to invest online. However, as businesses have evolved and ridden stormy waves throughout the years, ground zero for active angel investors has been dynamic. But what is important is who should you and your business be on the lookout for right now?

Wrapping Up

Meetings with investors may be scary. After all, there’s a lot of cash on the table, and individuals who have the potential to give that much money might be intimidating. But an investor meeting is just like any other meeting: it’s a gathering of individuals having a conversation. These particulars may assist you in gathering all the tools you require for a successful angel investor meeting.

FAQs

The post Who Are Angel Investors & How to Find The Right Ones? appeared first on PayU Blog.