Reasons Why You Need An Angel Investment In India For Your Startup
As a new entrepreneur or someone setting up a new business, you are likely to begin your journey by bootstrapping (self-funding) or borrowing money from friends and family. After the business is set up, you need to start planning for further expansion and accelerated growth, which may require a fund infusion.
It is difficult to procure a business loan if you cannot furnish enough collateral. Even if you manage a bank loan, the monthly financial liability at an early stage of the business can put undue strain on you. This is where angel investors and angel investment platforms come into play.
What is Angel Investment?
Angel investors, or angel investing platforms in India, are early-stage or seed-stage investors in new businesses that provide regular or lumpsum investment in return for equity ownership, revenue sharing, or convertible debt.
Angel investors for startups in India provide the necessary financial kickstart to new businesses, along with the benefit of experience, knowledge, and support.
The Importance of Angel Investors for Startups in India
- Funding: Angel investors for startups in India infuse much-needed capital into the business to accelerate growth and meet expansion targets. And, a credible and experienced angel investing platform can provide you access to a wide network of contacts for more angel investment, if needed.
- Business Credibility: Angel investors for startups in India are experienced in funding and growing businesses - either a specific industry like advertising or a mixed bag of companies. You can capitalise on this expertise and use it as a catalyst to boost your business’ credibility and garner enough attention for further rounds of funding, especially venture capital.
- Brand Building: Along with business credibility, renowned or celebrity angel investors can increase the brand value of the business, lending it higher reliability. You can capitalise on social media reach and media promotions to promote the association and boost brand reliability.
- Mentorship and Guidance: While some angel investment platforms simply invest money, a majority also invest their time, knowledge, and experience to help and guide entrepreneurs with critical business decisions. You can turn to the experience and expertise of your investors to set up critical processes, solve problems, and prepare for VC funding.
- No Monthly Repayments: With angel investing platforms in India, you do not have to pay any monthly charges, interest, or fees for your investment. Angel investors get their returns through profit sharing or equity ownership.
- Flexible Agreement: Unlike venture capitalists, angel investors for startups in India do not insist on formal or traditional agreement terms. Many angel investment platforms invest in a business or an industry to boost the domestic economy and create growth opportunities.
Final Words
If you are a new business or are on the lookout for seed money, then angel investing platforms in India is the best bet. You not only get the required financial stimulus but also benefit from the hands-on approach, guidance, mentorship, brand building, developing a credible network, generating leads for further investments, and so on.
For curated portfolios and targeted investment opportunities, businesses, as well as angel investors for startups in India, can register with integrated incubators. At Venture Catalysts, India’s first integrated incubator, we are working towards establishing a global 360-degree early-stage startup investment platform.
For more information, get in touch with us today.
Also read: How To Find The Right Investors To Fund Your Startup?
