As a startup entrepreneur, you might have laid the foundation for raising funds out of your savings. However, if you wish to take your goal even further while putting your business on the road to attaining success, finances tend to become one of the most challenging aspects that you are expected to conquer on your own.
This is wherein angel investors come in. They hold the capacity to make a major difference between the success and failure of any startup. For any entrepreneur, the importance of the early capital investment by an angel investor and the ability of the investor to analyze the existing business model is critical.
As a startup founder, you might wonder whether or not you need to avail paid services available out there to come across the right angel investors. Still, you can go ahead with finding the right angel investors either for free or at affordable rates by leveraging effective networking channels and social media properly.
Finding Angel Investors in India
The process of finding the right angel investors in India will significantly depend on the founders themselves. Startup founders can consider reaching out to individual members with the respective proposal or applying to the ongoing elevator pitch as far as angel groups are concerned. After multiple rounds of iteration by the respective secretariat, business owners will receive around 10 minutes to display a presentation of some slides. Upon getting shortlisted, they will be called upon for a face-to-face meeting.
Some effective ways to find angel investors for funding your startup business are:
#Using Angel Networks
Angel networks are regarded as a collection of individual angel investors becoming formal members of some reputed network. Members of the angel network or group gather together to observe the pitches and presentations of potential business owners. Upon this, the group of angel investors analyzes the prospective business proposals while making relevant investment decisions.
Most angel networks tend to focus their overall efforts on specific areas in which the existing members might have prior knowledge or experience. However, they might be willing to invest in other core areas as well. Some of the most common areas for reputed angel networks to ensure angel investing are medical devices, technology companies, manufacturing, and telecommunication. Some of the prominent angel networks in India are Venture Catalysts and others.
#Startup and Entrepreneurial Communities
Amongst the most effective strategies for finding angel investors in India is joining relevant entrepreneurial and startup groups or communities. Collaborators, investors, and entrepreneurs from all around the nation as well as overseas join to be a part of these communities. One of the major objectives of the creation of such ecosystems is to assist new as well as expand businesses.
Members of such communities interact with multiple stakeholders. Startup staff members, co-founders, incubation facilities, consultants, advisers, high-net-worth individuals, crowdfunding platforms, and seed financing agencies are some of them.
#Exploring Social Media
Different social media platforms have evolved into highly effective tools for a wider scope of applications. Therefore, it makes ample sense to be a part of these leading social networking sites if you wish to collaborate with successful angel investors. Some of the best social media networks to connect with potential investors are LinkedIn, Facebook, Twitter, and so more. To leverage social media to raise ample funds for your startup firm, here are some points to remember:
- Aim for creating ample social proof by depicting proof of concept, traction, and so more
- Getting on the radar with venture capitalists and angel investors
- Sharing your story
- Consistency is significant for your online presence
If you are in search of the best angel investors in India, you can reach out to reliable platforms. While getting your business financed by angel investors is a way of raising money at the cost of equity shares and hefty interest charges, you may also explore Revenue-based financing. If you are an online D2C business with at least 6-12 months of revenue history and good profit margins, then Revenue-based financing will be a better option for you. Initially, you may get the funding, grow your business and achieve the growth metrics. And later, when you have more confidence in getting the investment, you can find VC and angel investors in a stronger position in the future.
Moreover, platforms like Velocity –delivering revenue-based financing services can also help your brand grow without giving up equity.
To find famous angel investors in India, it is recommended to go through the list of top angel investors in India. Your overall efforts will be worthwhile when you discover the right entity to fund your startup business. Are you an e-commerce brand looking for funding options to boost your working capital and marketing spending? With revenue-based financing solutions by Velocity, you can raise fast, flexible, and non-dilutive growth capital to support your new business.