FEBRUARY, 20248ANGEL NETWORK OF INDIA: FUELING THE NEOTERIC TO DREAM BIGGER & NEWtarting and setting-up a business is not a cakewalk, but it is a laborious, cost intensive and labor-intensive job to make it a successful business empire. Capital is the first and foremost thing a startup needs to finalize, as it helps in operating day-to-day work and every process, because capital is the life-blood of a business. If you have the primary fund to set-up the basic formation of your business, it can reduce your stress a little or else you need to revolve round the offices of the capitalists or banks for loans. In the initial stage, startups had no recognition or brand value, so it is very difficult to draw sponsorship or investment for further growth. In such a case, angel investors provides initial seed money for startup businesses, usually in exchange for ownership equity in the company. Angel investors focus on helping startups take their first steps safe and securely rather than getting a favorable return on a loan. Angel investors are also been known as informal investors, angel funders, private investors, seed investors, or business angels.Understanding Angel InvestorLion's shares of angel investors are wealthy businessmen who want to invest their money on high return. They always look for young startups. Anyone who has the money and the desire to provide funding for startups can be an angel investor. Angel investor obtains accredited investor status, which is a formal designation, regulated by The Securities and Exchange Commission (SEC). Today with the advancements of Fintech industry, online transaction became child's play, at the same time it is convenient because a startup can get money from any angel investor from any corner of the country within minutes. These days many of the angel investors are investing online through equity crowd-funding. According to the market report, the effective internal rate of return for a successful portfolio for angel investors is about 22%. Seed funding typically comes from angel investors pooling their resources together into a professionally managed fund. Seed funds provide capital in the range of $500,000 to $2 million to very young startups. Angel investors help the startups to develop the prototypes, hire key staff, and attract initial customers without prematurely diluting control of the company."Being an experienced angel investor is like knowing one of the six winning lottery numbers in advance." - Naval Ravikant (Former CEO of AngelList)Angel Investing for StartupsAngel investors are committing their own money in hopes of making a good idea a reality. According to Fortune India, India is now the home to a 26,500-plus bustling angel investing community. While some angel investors prefer to do it solo, some form syndications or become part of business angel networks that help them invest smarter and better.Angel Networks of IndiaMumbai Angels Network: A 360 ONE Company· Founders: Prashant Choksey, Praveen Chakravarty· Inception: 2006· Investments(As of 2022): 185· Key Persons: Nandini Mangsinghka, Anshuman Maheshwary, Vinay Ahuja· Notable Investments: Vahdam, Snackible, Milk Mantra, Purplle, Fitpass, Myntra, WickedGüd, Eat Better Ventures, Woolly FarmsThis network is one of the most leading angel networks of India, which anticipates a prominent portfolio with 200+ companies, 100+ exits, and next-round investments with an IRR of 35%. The platform has 700+ investors spread across 60+ global cities. The average ticket size of their investment is between $70k-272k. Till date, Mumbai Angels have successfully done 185 investments. Today, the brand is known for the depth of its due diligence and the way it manages its portfolio, thereby becoming the gold standard of how deals are invested and managed in the industry. SSC COLUMN8 FEBRUARY, 2024
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