As a start-up or early-stage business owner in India needs seed funding for business expansion. Angel investor invests their money in these early-stage start-ups and businesses in exchange of the equity of the company. Top angel investor and Top Angel investor, Top 100 angel investors in India
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So Basically What is an Angel Investor?
The term angel investor refers to a high-net-worth individual who provides cash support for startups or entrepreneurs in exchange for equity ownership. Angel investor is also known as private investor, seed investor, etc. The angels typically provide start-up founders with capital, but they do not have any voting rights in the company they are investing in. Angel investors come from a variety of backgrounds, including venture capitalists, corporate investors, wealthy individuals, and angel networks. Individual angel investors often make investments on their own, but it is not unusual for multiple angels to work together to form an angel investing syndicate.
Why There is a Need for Angel investors in Startups and Early-stage Businesses?
When someone starts a new business, he/she needs funding and capital to keep his business afloat and grow. If one took money from the bank in form of a loan or debt, then it is mandatory to pay his/her loan amount in the given time period irrespective of business growth or business failure. So this is a very risky measure for early-stage businesses. Whereas angel investors aren’t required to pay back the money since ownership shares are exchanged for funds.
Pros of Angel Investors
- When an angel investor funds your business you can also get access to the knowledge your investor has acquired, which you can use for your business growth.
- If your company fails, angel investors don’t require repayment, It is a much safer method of funding your company than going through a bank
- Angel investors do not have to answer to banks or other institutions like traditional debt financiers. In this way, they have more freedom to invest their money
- Apart from financial assistance angel investors also helps business owner by providing mentoring or direct management support.
Who is Eligible for becoming Angel Investor
As per the Securities Exchange Board of India (SEBI) An “Angel Investor” is defined as a person who invests in an angel fund and meets one of the following conditions:
- A person whose net tangible assets are at least two crore rupees, excluding the value of his principal residence
- An investor who has experience investing in start-ups, and emerging or early-stage companies.
- An individual who has promoted or co-sponsored more than one start-up venture (serial entrepreneur) or an experienced senior manager with at least ten years of experience.
- A corporation that has a net worth of at least ten crore rupees
- An Angel Investor may invest up to 25 lakhs INR through an Angel Fund in startups that he/she likes.
5 Tips to Find Angel Investor for Your Start-up Business
When you decided to scale your business by angel investor funding, then you need to find an appropriate angel investor for seed funding. In India, there are various online platforms that provide contacts from angel investors. Here we are providing a few tricks and suggestions for successful angel funding.
- Be aware of your Business Plan
Make sure your business plan is in place. In order to invest in your business, angel investors will want to see that your business has the potential to succeed. So keep every detail like business strategy, business plan, future plans, etc in check.
- Build a Great Business Portfolio
It will be easier to build trust among angel investors if you highlight your past ventures’ success. Founders with an established track record tend to attract angel investors. Investors will feel confident that you can handle their investments effectively if they see your past performance.
- Keep Your Business Thoughts and Business Pitch Crystal Clear
Always keep your business thoughts and plans, and pitch crystal clear. Because if investors find your pitch and business plans interesting, they will set up a meeting to hear more about your business plan. Investors usually ask about the Founders, the criticality of the problem, how unique the solution is, whether the business is scalable, leveraging technology, market strategy, unit economics, sales traction, financial projections, dilution levels, pre-money valuation, and fund request, among other things. So keep every detail of your business on your tips.
- Build Trust in Investors
In the tech field, investors are especially interested in understanding exactly what they are financing. Angel investors invest their own money, so building their trust and developing a relationship with them is crucial to gaining their support. It is important to let your investors know what their return on investment will be, or how much money they stand to make based on how much they are willing to risk.
- Be Calm Composed and Confident
A Founder who can confidently answer investors’ questions calmly is more likely to secure funding. If your start-up is heading in the right direction, with the potential to scale up in the future, you will eventually find the right Angel Investor. Your business blueprints should be made easy to find, evaluate, and participate in by angel investors
How to Approach Angel Investors in India
After deciding to bring in angel investors, the next step is to find them. Without a network of investors or wealthy individuals in general, you might not even know where to begin. But you need not worry about this issue because here we are sharing various steps to find angel investors for funding business.
- Social Media
Social media is not just a place for social awareness. It can also help you in finding investors for your business, Being vocal about your project is the first step to finding investors on social media. Describe how you are building your startup and document what you are doing. By building an audience, it will be easier to connect with investors. Sometimes, they’ll reach out to you first.
- Angel Investing Websites
The most convenient way to approach investors for business funding is by approaching investors through dedicated business advising websites. One can approach the right investor from the comfort of his/her home. Here we are sharing the list of the top 5 websites for searching for angel investors
- Indian Angel Network- To Visit the official website of Indian Angel Network Click Here
- HBF Direct– To Visit the official website of HBF direct Click Here
- Venture Catalysts– To Visit the official website of venture Catalysts Click Here
- LetsVenture– To Visit the official website of Letsventure Click Here
- Lead Angels– To Visit the official website of Lead Angels Click Here
List of Top Angel Investors in India
Here we are sharing the list of top 30 angel investors in India. if you want to know more about these investors just google their names and you will get the complete information.
- Amit Lakhotia
- Amrish Rau
- Anand Chandrasekaran
- Anjali Bansal
- Anuj Srivastava
- Anupam Mittal
- Binny Bansal
- Deep Kalra
- Deepinder Goyal
- Gaurav Munjal
- Girish Mathrubootham
- Harshil Mathur
- Jitendra Gupta
- Kunal Shah
- Kunal Bahl
- Miten Sampat
- Rajesh Sawhney
- Vijay Shekhar Sharma
- Vidit Aatrey
- Varun Alagh
- Utsav Somani
- Sujeet Kumar
- Rohit Bansal
- Shashank Kumar
- Shanti Mohan
- Sahil Barua
- Rohit Kapoor
- Ritesh Malik
- Ritesh Agarwal
- Ramakant Sharma
Conclusion
An angel investor will evaluate your business as thoroughly as possible because they are investing their hard-earned money in your early-stage businesses. In order to convince your investors to say yes to funding, entrepreneurs need to make sure that they can show off their best business ideas in the most efficient manner.