Qualities of Startups That Angel Investors Should Consider

Qualities of Startups That Angel Investors Should Consider

Gone are the days when starting a company was considered a mammoth task. This is the age of startups, of excellent business ideas and people passionate and committed to bringing them from idea boards to fruition, of consistent innovation and improvement. One of the factors that has made starting a business relatively easier is the rise in the number of investors for startups.

Securing the requisite investment for a startup is no longer a daunting task. However, entrepreneurs still need a viable business idea and several other critical elements in their business and team that can attract the attention and interest of angel investors.

And if you are an angel investor, then there are certain elements that you must look for in startups before you invest your money.

What Angel Investors in India Ought To Look For In Startups

Before funding a startup, an angel investor in India must ascertain the answers to the following questions:

• Is the business idea scalable?

The first and foremost question an angel investor or angel investing platform in India must address is whether the startup idea that is being pitched to them is profitable and scalable. This depends on a lot of factors, including the scope of the product or service underlying the startup idea, the target market, and the scale of investment.

• Are the founders and their teams passionate?

The founder of a startup is inarguably the captain of the ship in a venture no one can predict the precise course of. As a part of the angel investor network in the country, you must look for startup ideas helmed by people who are passionate, dedicated, and invested in the success of the idea.

• Do the founder and the startup team know their business well?

Startups are, in many ways, like babies; they need to be nurtured and given the requisite space and resources to flourish. It is, therefore, imperative that the founder and their team are completely aware of the scope, metrics, potential, risk, and every critical aspect of the business. If you are investing in startup funds in India, you must look for people who know the present situation of their idea and/ or organisation and the future path it can take.

• Is the risk-reward equation feasible?

Every business idea inherently contains risk, and startups are no different. As a part of the startup ecosystem of India, you must look for ideas and businesses whose risk-reward equations are favorable. Investing in an idea with a high risk but very low expected return is, in no way, business savvy.

• Is the investment going to grow?

All investments in startups are done with the intent of growth - in the idea, the business, and the worth of the company. As an investor in startups, you need to ensure that the idea you are allocating funds to will yield returns within a specific timeline. Furthermore, it is pivotal to know exactly what part of the business your investment will be directed towards.

Join the Venture Catalysts

If you are looking for an angel investors platform in India, then you can join us at Venture Catalysts - India's top incubator for startups. With a portfolio of more than 100 startups, we provide an integrated network of information and resources for startups and angel investors alike.

Also read: Reasons Why You Need An Angel Investment In India For Your Startup