Angel investors typically invest in businesses on a one-time or ongoing basis. Their principal goal is to assist entrepreneurs in developing their businesses. They also want convertible debt or own stock in the firm for their financial contributions.
Undoubtedly, a startup faces numerous hurdles in its early stages, but it is the founder’s perseverance and enthusiasm that keeps the company running.
Finding angel investors and persuading them to invest in your business idea might be difficult.
Here are some pointers on how to approach angel investors in India:
Then how do you source capital for your expansion?
Fortunately, there is a group of investors known as angel investors that are seeking new company possibilities. Unlike a loan, angel investment does not require you to make monthly payments. You don’t even have any obligations.
However, because you own a portion of your firm, it comes with the disadvantage of a loss of control.
Most small firms are unaware of angel investors or do not know how to find one.
So, in this piece, we’ll discuss what angel investors look for in a company and how to contact them. We’ve compiled a list of India’s top angel investors, along with their contact information.
Who is an Angel Investor?
An angel investor is a high-net-worth individual who invests in small businesses or startups in exchange for a share of the company’s ownership.
Angel investors are more concerned with helping businesses expand than with the company’s earnings. This is what differentiates angel investors and venture capitalists.
There are many angel investors you can contact for funding in India.
What is the Role of Angel Investors?
Angel investors can come from a variety of professions. They could be a doctor, lawyer, a business partner, or even another entrepreneur. They are rather motivated by the success of the startup.
Angel investors hold you firmly by hand at every step and take on the role of mentorship since they are passionate about the business. Moreover, the majority of angel investors are senior executives who have worked at Fortune 500 businesses.
As a result, their mentoring is extremely beneficial to the success of your firm. Angel funding is critical for the startup environment because of their help and mentorship.
What does an Angel Investor look for in a Business?
The following are what an angel investor looks for in the business before investing;
1. Genuine Convictions and Commitments:
Your vision and commitment to your consumers are the driving forces behind your firm.
So, one of India’s top investors, Rajan Anandan, emphasizes that he would back the funding team or founders who he believes have perseverance, vision, and the ability to establish a team and generate funds and is tackling a real problem.
2. Traction and Scalability of your Business:
Business traction is defined as the presence of momentum or evidence of a growing business, such as measurable customer base, staff strength, increased revenues, etc.
As a result, the stronger the traction, the more investors are drawn to the organization. When a company is scalable, it indicates it has the ability to grow revenue at a low incremental cost.
Software costs a lot of money, but any number of additional copies can be made for a small additional cost.
3. Employ a Competent Management Staff
There’s no point in having a brilliant startup idea if your team is inefficient. To assess you and your management team’s quality, angel investors would want to interact with them.
4. Size of Target Market
Revenue generation purely depends upon the target market. If your product or service is appealing to a large population, investors would be interested in investing in your idea.
5. Sense in evaluating your Business Plan
Be genuine while estimating your financial numbers on your business plan. As much as you would not under evaluate, resist the urge to over evaluate. Ensure you get a reasonable estimation in your valuations by carrying out in-depth research.
6. Viable Exit Strategies
Angel investors are patient and willing to invest in the long term. Though profit is not their main motive, they expect some sort of return on their investment.
Therefore, it is obvious for them to look for an exit strategy to reap their benefits. The most common exit strategy is the sale of shares to the company’s principal founders.
Another common thing is selling the business to strategic buyers. Some startups even try to convince their angels for an IPO.
Easy step-by-Step Guide on How to Contact Angel Investors in India
These are the steps to contact angel investors in India. They include:
STEP 1: Make Your Pitch Deck
To potential investors, you must describe your idea, team, company model, target market, and rivals. It is critical to construct a pitch deck which is a PowerPoint presentation on this topic.
It should be your top priority before addressing any potential angel investor. To include all important aspects of your business, your pitch deck must be straightforward yet persuasive.
You must analyze all of your company’s issues and be prepared to answer the difficult question.
STEP 2: Make a Prototype of your Product/Service
You must develop a practical presentation of your product proposal for the angel investors in order to demonstrate to them that your business ideas are more than just numbers.
As a result, having a prototype of your idea can help you persuade your angel investors and obtaining angel funding quickly.
STEP 3: Look for an Angel Investor
India has a large number of wealthy investors. You can literally find them anywhere but for the sake of professionalism, LinkedIn has a lot of them.
Search your angel based on your niche. Then, on LinkedIn, send them a direct message with your succinct yet strong pitch.
For your convenience, a list of the most active angel investors in India, along with their portfolios, industries, and contact information has been provided to you.
You may not get your first pitch right, so stick with your angel and do some networking with others by joining investment clubs, attending business meetings, and joining the Indian angel network.
This method of networking will lead you to meet someone who has a mutual friend with the angel investor and receiving a warm introduction. Then, it’s only a matter of demonstrating your ability to persuade others.
STEP 4: Give a Confident Presentation
Following your successful pitch, you must confidently present your ideas, company plan, and product prototype to a business investor.
Don’t be concerned about the outcome, rather demonstrate your enthusiasm for your concept and how you intend to promote and multiply your revenue.
List of Top Angel Investors in India that you can contact
These are the top angel investors that you can contact in India.
#1. Rajan Anandan
Rajan Anandan is a tech angel investor who puts resources into new businesses in mobile, web, and programming enterprises. He likes to invest in the beginning phase of innovation organizations.
Rajan is a business expert who recently filled in as the overseeing overseer of Google India and the Southeast Asian region.
He is presently cooperating with Sequoia Capital, an investment firm situated in Silicon Valley.
#2. Sharad Sharma
Sharad Sharma is one of India’s top angel investors, having made about two dozen endeavours. He is a fervent ally of India’s software product ecosystem.
He is likewise a co-founder of iSPIRT and a member of its Governing Council and has worked for various innovative organizations as a senior chief. Currently, he is the CEO of Brand Sigma Inc.
Mobilewalla, IntensAquatica, Vayavya Labs, and Druva Software are among the new companies in his portfolio. Sharad Sharma is interested in specialities like; programming, mobile, and the web.
#3. Anupam Mittal
Anupam Mittal is an author and CEO of People Group, which claims a few of his portfolio firms and is a startup dynamic angel investor. He has put resources into over 20 new companies, most of which are land-related.
He has over 12 years of skill in correspondence, media, and innovation, and business advancement.
#4. Samir Bangara
Samir Bangara is the CEO and Co-Founder of Qyuki.com, a platform that permits clients to create content, interface with others, and monetize their work.
He places his cash into social games and stages for application advancement. Pokkt, Playblazer, Thrill, ZAPR, and tushky.com are among the new companies in his portfolio.
Social gaming, application improvement stages, and media are instances of enterprises and specialties he likes to do some angel investment in.
#5. Ajeet Khurana
Ajeet Khurana is a functioning private angel investor who is known for conquering the monetary and functional hindrances that accompany running a school.
He is the CEO of SINE at IIT Bombay and has put resources into in over 20 Indian organizations.
The startups in his portfolio include; Rolocule Games, PickMe eSolutions, Karmic Life Sciences, Maximojo, Carveniche Technologies, Hacker Noon, Medd, and Snackexperts.com.
#6. Pallav Nadhani
Pallav Nadhani is an active angel investor who has upheld over 25 advanced new companies in India and the United States. He is, mostly, keen on B2B and SaaS firms.
He is a 16-year-old business visionary who dispatched his business. Fusion Charts and RazorFlow are both co-founded by him, and he fills in as their CEO.
Safeguard Square, HealthifyMe, Betaout, Minjar, Skillenza, Eudora Technologies, and Cropex are among the new companies in his portfolio.
He is one of the top angel investors in India to contact for funds.
At the point when you require assets for your extension, moving towards an angel investor is the most ideal alternative.
The best way to do so is to set up a sound strategy with worthy qualities, a decent supervisory crew, and comprehend your aim market.
After you’ve finished these cycles, you can with little of a stretch method and pitch your angel fund using the steps illustrated previously.
Recollect that not all new companies are venture prepared, and not all speculation prepared new businesses to get financing.
Being a business person is a drawn-out responsibility that requires determination. Thus, except if you succeed, take a stab at seeking various angel investors in your business.
These are the top angel investors in India you can contact for funding.