Running your startup is as smooth as riding a roller coaster. It has many dips, highs, and slippery slopes that sometimes make you scream. However, the security handles hold you in place and enable you to enjoy your ride. Angel investors are like those security handles; they provide you with the security and courage for the wild ride of operating a startup at its early stage.
Angel investment in India is more than just financial support; the angel investors for startups are mentors who trust the startup idea when the whole world (sometimes, even you) doubts its potential.
This blog will discuss the need for angel investment in India, what it means, the role of angel investors for startups, and how you can secure such investment in India.
What is the meaning of Angel Investment?
Investing in a startup is anything but a walk in the park. There are a zillion things to consider. However, a minimum value product (MVP) and full-functioning startups are more likely to secure large sums of capital. But what if you don’t have a business model or even an MVP? That’s where the angel investors for startups become extremely important.
The angel investors for startups in India are the risk-bearers who invest in startups in the early stages lacking a structured business or even a base product.
Angel investments come from high net-worth individuals (HNIs), commonly known as angel investors. They invest in early-stage startups in India and provide the necessary mentorship to help them thrive. Let’s understand more about the role of angel investors for startups in India.
The Role of Angel Investors in India
India has experienced tremendous growth in the past few years, and startups have been the backbone of our country’s innovative front. The angel investors for startups have played a vital role in supporting them in their early stages so they can shine as they grow. An angel investor’s roles, responsibilities, and benefits are the following.
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Early-stage funding to kickstart the R&D
The angel investment in India is often in the form of seed funding or initial funding to kickstart the startup journey. The capital raised from angel investment in India for early-stage startups helps conduct thorough market research to build a solid business model, build an MVP to improve your business operations and create reliable data for securing future investment.
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Mentorship from industry experts
Angel investors in India offer more than just capital. The angel investors are high-net-worth individuals, often industry experts and leaders. They are looking for innovative ideas for the betterment of the industry or want to help the entrepreneurs grow. Thus, in addition to the capital, they mentor the startup or the entrepreneur to understand business models, tackle obstacles, adapt to market changes, and make better decisions to boost startup growth.
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Build credibility in the market
Any new startup will eventually face criticism and scrutiny from the market. It includes the doubtful gaze of the industry and your target audience to trust your vision. However, you win some brownie points when backed by credible angel investors like Ratan Tata, Anupam Mittal, Kunal Shah, Ramakant Sharma, and more. With credibility, you can establish your market presence and gather data to expand your business by raising funding.
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Grow your network for better opportunities
The angel investors network in India houses diverse investors and entrepreneurs. Therefore, startups can benefit by leveraging the angel investors’ network to grow their businesses. The angel investors help you connect with relevant and influential business people (investors, entrepreneurs, and business experts). A network of experts can help you strengthen your market position, form alliances or partnerships, get expert advice when necessary, and have a reliable support system.
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Reduced pressure to show immediate results
When the startup raises funds, they are under pressure to perform well and give returns to the investors. The pressure is even greater when the funds come from loans or VC funds. These two need consistent returns. On the other hand, Angel investors understand the struggles of early-stage startups. So, they are calm for their returns. Instead, they motivate and assist startups in navigating the initial hassles of a startup and boosting startup growth before taking their ROI.
Angel investors are the angels for infant or early-stage startups, helping them build the core pillars of their startups. Therefore, finding the right investors for angel investment in India is essential for your growth.
How do you get Angel Investors in India?
Angel investment is the key to startup growth. However, the competition has become harder due to the influx of startups and the development of angel investors in the startup ecosystem. Therefore, securing seed or early-stage funding from angel investors is easier said than done. The following are a few points to help you easily raise your angel investment in India.
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Build a business model:
A business model is the blueprint of your business. It maps out all your startup’s operations and management strategies for production, marketing, finances, revenue, human resources, and more.
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Create a pitch deck:
A pitch deck is a presentation about your startup. You must highlight your team, value proposition, market trends, data to support your claims, and factual data to prove how the inventors can benefit from investing in your startup. Keep it concise and authentic.
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Connect with an angel investor network:
Finding the right angel investor for startups can be game-changing. Therefore, leverage the angel investors network in India to find angel investors specifically in your industry and list the ones you want to connect with. You can attend networking events like Global Startup Summit to connect with relevant angel investors for your startup.
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Setup a pitching appointment:
After you build a repo with the angel investors, approach them to set a pitching appointment to pitch your ideas and discuss the potential investment.
Be confident with your pitch and pay attention to their offerings and demands. Negotiate the deal to reach a point where you both benefit from the angel investment.
Conclusion
Angel investment in India is crucial for early-stage startups to thrive. With the funds, mentorship, and networking opportunities offered by angel investors, the Indian startup ecosystem has been flourishing. The startup investors extend their funds, industry knowledge, and support to keep the entrepreneurs motivated and accountable. Their patience and leniency for ROI help the early-stage startups in India to conduct market research and build their MVPs. Networking events like the Global Startup Summit by 21BY72 are great places to connect with angel investors for guidance or investment. Create a business model and an effective pitch deck explaining your startup to attract investors and secure angel investment.
FAQ
1. What is an angel investor network in India?
The Angel investment network in India includes a group of HNIs and industry experts eager to support innovative startups through investment. The angel network organizes networking events connecting startups and investors to connect, pitch startups, and share industry knowledge.
2. What is the benefit of taking an angel investor?
Angel investors are industry experts offering startups the necessary early-stage capital, mentorship, and guidance to navigate the initial roadblocks a startup faces. The knowledge shared by angel investors can help you tackle many more setbacks and adapt to market trends for startup growth.
3. What do angel investors look for in an early-stage startup in India?
An angel investor for startups looks for innovative ideas for startups, their core team, value proposition, reliable business plan, and the skills of the entrepreneurs.
