siliconindia | | December 201919ANGEL INVESTORS: BEST BET FOR RAISING FUNDS FOR NEW ENTREPRENEURSBy Kunal Sanghavi, CFO, Metropolitan Stock Exchangehere are various stages of raising funds start-ing from bootstrapping, banks and private loans, Angel investors, venture capitalist, private equities to public listing . Addition-ally, organisations may raise funds through debt securities and structured debt papers.Generally, it is very difficult to convince private eq-uity or venture capital funds who follow a hard due dili-gence process for investing in a firm besides their ticket size for investments is also quite large.In the initial stages businesses looking for funds may prefer to approach Angel investors as they can actually understand and bet on an idea and more importantly on teams which haven't yet delivered outcomes. Further, they can even provide small amount of funds which is generally required in the initial stages of a business and hence helps them survive and boost further growth. This sheer flexibility that angel investors provide makes them perfect source of fund raising for startupsOn the other hand, private equity funds try to fit in investments as a particular percentage of their overall portfolio then try to fit in the category of seed funding besides sector allocation. They further, align their invest-ment plans with scheme objectives making it difficult to find or shortlist new enterprises for investments. There-fore, Angel investors form very core building blocks of various organizations. Further in little mature stages when businesses have validated their models commercial cash inflows are in place and are looking to capture more geographical mar-kets and or work on new products, angel investors play a role by not only funding but connecting such compa-TCXO INSIGHTSKunal is dynamic & a creative team player with interest of learning ability in all facets of Financial Services and capital marketsKunal Sanghavi, CFO
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