The Importance Of Angel Investors
For New Startups
Every entrepreneur is well aware of investors who love to invest in
new risky businesses. These prominent individuals are known to
convert new ventures to significant players in the market. Yes, I am
talking about angel investors. From Ola, Uber, Myntra to Paytm,
Paypal, etc. all companies became big when angel investors backed
them with their investments. Many times, being the owner of a new
startup, things start getting tricky for you. Angel investors are some
of the best managers. The more we learn about them, the more
mysterious they become. In this article, we will try to understand the
importance of angel investors for new startups​.
Importance of Angel Investors For New
Startups
What Are Angel Investors?
Let’s first understand some basics about angel investors. Angel
investors are filthy rich people who i​ nvest in startups for equity​.
They can offer seed capital from a million dollars to 10 million
dollars. However, while giving so much, these investors have their
sixth sense always activated. Ordinary investors may lose money,
but when it comes to angel investors, their chances of winning are
at 99 percent. An angel investor takes a portion of ownership in
your company after giving money. He or she guides you so that you
gain some immunity against unfavorable market conditions. You
must always seek them for your startup benefits.
Benefits Of Angel Investors
1. Angel Investors Are Risk Takers
New owners forever dream of people who will take risks with them.
That’s why they prefer to g
​ et angel investors for startup​ instead of
banks and other financial institutions. Angel investors have their
personal choice. They handle your startup as well as their
investments with perfection. You start nurturing from the guidance
angel investors provide to you.
2. Better Network
No matter how hard work you put while forming a business
network, obstacles will arise from time to time. Sometimes, no one
shows interest in your business. Speaking of angel investors, they
are always ready with a helping hand. They also let you take
advantage of their resourceful business network. A business
network is necessary for you to expand.
3. Better Management
Quite often, new companies fail because of poor management. It’s
pretty reasonable as you are new in the business world. Angel
investors come with diverse experience from different industries.
They know what to do and what not during a series of difficult
situations. Therefore, you must have angel investors behind your
business.
Startups That Went Lucky By Angel
Investments
Like I said before, angel investors skyrocketed the growth of many
startups. Here, I have listed five startups that went big by angel
investments.
1. OlaCabs- The largest taxi aggregator in India, OlaCabs, was
supported by Anupam Mittal from India. OlaCabs expanded
dramatically after gaining some angel investments.
2. YourStory- YourStory went big when TV Mohandas Pal fueled
it with his investments. Nowadays, the platform is spreading
like wildfire.
3. Unacademy- A paid-learning platform for all students and
competitive exam aspirants. Girish Matharubootham, an
Indian angel investor, supported it.
4. Myntra- Anand Ladsariya made some significant investments
in Myntra, a popular ecommerce platform in India.
5. OYO- OYO is a big name in India. Sanjay Mehta, a reputed
angel investor from India, supported it.
Where To Find Angel Investors?
The easier it is to seek help from them, the harder it becomes to
find them out. Still, many platforms exist where you can search for
angel investors. One thing to remember is the type of investors you
are exploring. Angel investors have different tastes. Some go for
tech startups, while others may love to spend in the financial
industry. Whatever happens, never try to approach wrong investors.
By doing so, you are wasting your valuable time. Also, while
approaching investors, find out their background. Today, there is a
huge possibility of you approaching the wrong people. Everything
seems fine with them at first, but after some months, you will face
several problems. In case you have your network, ask people about
where to find them. Chances are, you will get one or two from it.
Start registering to social media platforms, especially LinkedIn.
LinkedIn has an influential social network where entrepreneurs and
other people interact with one another every single day. The
platform has made many things for entrepreneurs quite easy.
Final Thoughts
In summary, we have seen the importance of angel investors for
new startups. A startup journey is never going to be easy, get this
down in your mind. Most importantly, stay prepared before starting
your new business. You will find angel investors if you work hard
every time. There are numerous funding sources such as VC
companies, startup incubators, accelerators that can help you
kickstart your project​. However, angel investments can make you
fortunate within a short time, and at the end of the day, you will see
more success in the future.
Reference Url:- ​Startup Paisa