Breaking News

How to get Angel Investors Funding in India



A Person sharing information about Startup that how to get funding from Angel Investors in India




Getting angel investment funding is not an easy way to get. As we know in 100 startups, only 5% of startups survive for more than 5 years. There are several reasons due to which startups fail to expand or grow. One of the main reasons is the money of course or lack of investment.

So if you are into startups and want to know how to get investment from Angel investors in India. This article will let you clarify all the doubts and questions.

 

Read More:- What is e-RUPI and how to use


What is Angel Investment?



Before going forward let's clear who is  Angel investors? Angel investor is the professional experienced people who invest money into a growing startup by checking various factors. Angel investors always choose the startup to invest in by understanding the product, potential of the team and product, future market, and much more. Angel investors are excited to nurturing business people who are chipping away at an item that may change the manner in which a specific industry or area works.


Angel investors can be anyone with some experience like Doctors, businessmen, Engineers, etc. And the investment done by Angel investors in a startup is called Angel investment.

Examples of some famous Angel Investors in India:-


1. Ranjan Anadan Managing Director – Sequoia Capital and former MD at Google India invested in Instamojo, Travelkhana, etc.


2. Ratan Tata Ex-Chairman Tata Industries invested in Xiaomi, UrbanClap, etc.



Why need angel investors to invest in startups



It is like both side's benefits i.e. from the startup side to investors. Designing an idea into reality needs a lot of things time, money, and much more. In the initial stage, every startup needs more money for research and explore their business. Of course a lot of expenses to be handled by funding. 


Same for the investors, who always seek to earn more money from money. They know exactly how a startup can become an MNC in the future, by investing they can take some partnerships, shares, etc. It totally depends on the startup-investors relationship. 



What exactly Angel Investors looking for to invest in Startup



Whenever Any angel investor looking to invest in a startup, they look at various factors. So you need to find exactly how to pitch your strategies in front of them. They always keep in mind startup ideas, business future, production management, and of course the founder & mate's passion to solve the problem.
Some of the below points Angel investors always looking for.

  • The main business problem solved by the startup is worthful. Is the particular startup can compete with others in the market?
  • Investors always look at the leverage and solving power of the founding team of a startup. How far they can go to solve a problem?
  • Does the founder have enough business knowledge?
  • Is the problem really solved by a startup? will customers repeatedly come back or purchase the solution? 
  • Is the startup have a roadmap or plan for the next 8-12 months? If yes, how will it work?


We just listed some basic points to keep in mind before going to angel investors to invest. There are many other things that also depend on whether you will get an investment or not like the relationship between a startup and investors.



How to find Angel Investors for Startup


First thing, Angel investment is not required for every startup. It is only for specific industry-oriented startups. So you always be ready with your niche-based Angel investors. There are some ways to approach Angel Investors. So how you should be planned to do that.  


  • Make a list of angel investors that comes into your niche like if your startup belongs to the e-commerce category then Ratan Tata should be on your list.
  • Always good to have some insights by launched a minimum viable product(MVP) already in the market. This is good for you to show in front of investors.
  • There are many online websites where you can find the list of angel investors in India.
  • You can use social media to reach out to investors like Linkedin, Twitter.
  • Must and Always use email as the first way to contact investors.
  • Connect with incubators.
  • You can go for private firms that help to connect with angel investors.


India has more than 5,000 angel investors. Entrepreneurship in India is growing so much as for now. So, investors are just to invest in some good startup. So, do you think your startup is one of them? If yes, then what are you waiting to follow all the instructions given above.