8 Steps To Becoming An Angel Investor in India | Venture Catalysts

Angel investors for startups in India are individuals or companies that fund a startup in the beginning stages, especially when the startups cannot raise venture capital. Angel network investments provide the necessary financial launchpad for a new business in return for equity ownership or revenue sharing.

Traditionally, angel investors in India were limited to a small and close-knit group of HNIs. However, with access to better investment resources and platforms, angel investing in India has become more democratised and accessible for more investors.

Eligible investors with surplus capital can move up from passive investments in stocks or the sub-prime real estate sector and tread the highly exciting world of startup investing.

How to Become an Angel Investor for Startups in India?

SEBI requirements for angel investors in India:

The Securities and Exchange Board of India (SEBI) has set up a list of eligibility criteria for angel investors in India, concerning the minimum net asset and related requirements. Ensure you check your eligibility before foraying into angel investing.

Angel investment risks

As with any investment, angel investing comes with its unique sets of risks and challenges, which need to be analysed and understood for a streamlined investment experience. Additionally, as a prospective angel investor in India, analyse your risk appetite and see if it matches the risks involved with angel investing.

Knowledge and resources

Leading Indian angel network incubators and angel groups conduct workshops, seminars and investor masterclasses so that prospective angel investors for startups in India understand how startups are valued, the process for angel investing and exit, identifying startups with growth potential, etc.

Networking with angel investors for startups in India

Network with existing investors to discuss and understand the field and get a clear sense of what angel investing entails. This also helps in building your angel network of investments for the future.

Angel groups and incubators

Joining Indian angel network incubators, angel funds and groups, can help you learn from the collective experience of some of the best entrepreneurs, investment experts and existing angel investors in India to circumvent the common risks and ensure a successful startup investing journey.

Early investment strategies

There are a few initial investment strategies that you need to lay down - which industries, sectors or projects are you interested in? What is your preferred amount and tenure for the investment? Will you prefer lump sum or staggered investments?

Investment opportunities

Go where the startups are; for instance, you can contact Indian angel network incubators that help with not only curating the right set of sector-agnostic investments in early-stage startups, but also providing portfolio management and securing excellent exit opportunities for higher returns.

First investment

Once you have amassed enough information and knowledge regarding the basics and feel confident about identifying the right deal, you can take the leap toward your first investment.

Conclusion

Leading angel networks for investment and Indian angel network incubators are helping prospective angel investors in India decode the meaning and learn the science behind angel investing.

Thus, if you have surplus capital waiting to be invested, a stomach for taking calculated risks, and are looking for a good Indian angel network incubator that assures curated investment opportunities, an expert network of contacts, and experienced decision-makers, all under one roof, connect with Venture Catalysts - the first Indian integrated incubator.

Also read: How To Find The Right Investors To Fund Your Startup?