5 facts about Angel Investors

By Aparna RoyWhat is a start-up? What initiates a start-up? Who funds them?

The very word start-up triggers so many questions in our mind. Since the time of its advent and the rate at which it is increasing has grabbed almost everyone’s attention. People have developed an utmost curiosity to know about the functionalism of the start-up ecosystem which is indeed prodigious.

Start-ups have got an enormous characteristic, its domains are massive and of course, have a huge team and many people are involved in its concoction. It starts-off mostly as an individual proposition but many a time grows into hefty businesses and sometimes to great trade empires. With such wide attributes, scopes and latitudes one can write a couple of volumes on it.
Hence to cater a portion of the curiosity, we are now going to talk about the outlandish aid that start-ups receive which is customarily known as ‘Angel funding’ provided by ‘Angel Investors’.
Let us first learn about angel funding and angel investors.

Angel funding is basically a sort of monetary help provided by well to do and rich investors to innovative and salutary individual businesses.
Such investors are referred to as angels. Why? Because they come to the rescue of entrepreneurs who have great business ideas but lack fund.
These angel investors fund the small businesses and lend a helping hand to the budding speculators who venture into the market to create their own space in the commerce and trade eco-system.

There are many fascinating facts about angel investors and their fundings. Some of the basic ones are discussed below:

1. Angel investors are fearless. Unlike others, these investors bestow financial help to tiny start-ups or dubious domain in which other investors fear to stride.
2. Angel funding is derived from many individual investors. This is done to collect a good amount of money and spent a decent sum on start-ups.
3. In India, angel funds are regulated by SEBI, which allows the start-ups to gain sponsorship from around 200 investors.
4. Reaching these angels is not an easy task. An entrepreneur must impress them with a good and productive business idea along with a good presentation of the roadmap. An effective channel of contact is required too.
5. The angels have to be kept happy. Such investors make generous investments and they expect a copious return as well. Some investors expect a profuse return from their investments.

Everything in this world has different aspects. Thus entrepreneurs can take advantage of the positive aspects of angel investors and take precautions to avoid upsetting them. So look out, there may be an angel ready to upraise an innovative grail.