Starting 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 Investor
Lion’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 Startups
Angel 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 India

Mumbai 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 Farms

This 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. Gradually this network has expanded quite well and having 350 members. Mumbai Angels has an exclusive learning community called the MA Academy, where founders can get multiple learning opportunities from industry experts at a discounted price. In 2021 they invested in 56 companies and the network is driven by process and algorithm. Their most recent investment was on edtech company, Spardha, which raised Rs.80 million.

Chennai Angels: Nurturing Passion, Mentoring Success
•Founder: Ramaraj R.
•Inception: 2007
•Investments(As of 2022): 64
•Key Persons: Gopal Srinivasan, Lakshmi Narayanan, and Ramaraj R
•Notable Investments:The Indus Valley, Bumberry, D’Moksha Homes, MangoPoint, The Postbox, and Truly Madly

This organization was formerly known as the Chennai Entrepreneurship Trust Fund. It is one of the leading angel networks across southern India with more than 350 members. The Chennai Angels have made 64 investments. Their most recent investment was on May 5, 2022, when FREED raised Rs.210 million. The organization is not only investing on new inspiring ideas of the young entrepreneurs, but they are nurturing & mentoring them to foster the objective of entrepreneurship. A group of successful leaders, who have successfully built, run and in many cases exited enterprises across multiple domains and industries and help entrepreneurs build and grow their ventures and enterprises into success stories. The Chennai Angels use their own platform designed to support the activity of Angel Networks. On average, the funding would range between Rs.50 lakh to Rs.3 crore.

Chandigarh Angels Network
•Founder: Alok Ramsisaria
•Inception: 2015
•Investments (As of 2022): 25
•Key Persons: Sameer Jain and Diksha Khadwalia
•Notable Investments: Biryani by Kilo, The Gourmet Jar, Jumbo Basket, Paymart India, FREED, and Barneys
A community of successful entrepreneurs turned angel investors in India committed to supporting promising startups and help them scale heights with their expertise. They primarily focus on helping startups at seed & growth stage and while doing so they help many startups validate their business model. Their network comprises more than 85 angel investors who have mentored over 250 startups and have funded 8 startups so far. This network has 40 portfolio startups and created 1500+ jobs. Their most recent investment was in FlexifyMe as part of their Seed – II, where they have invested $1.2 million. Chandigarh Angels Network provides feedback on the business plans, funding, mentoring, angel business and professional network, and incubator space.

Calcutta Angel Network
•Founders: Kumar Patodia, Pradyumna Dalmia, Raghav Kanoria, and Rahul Kalyan
•Inception: 2013
•Investments: 20
•Notable Investments:Purple Style Labs, mCaffeine, CoHo, and Ketto

Calcutta Angel Network is a platform for entrepreneurs and investors to come together and build an environment for guidance and angel investment. It is a leading angel network concentrating on Eastern India. It mainly invests on startups based on West Bengal and Eastern states of India. Mostly they have invested in healthcare, education and crowdfunding. It is the first-of-its-kind structured platform of its kind in Eastern India. Apart from the funding and mentorship, entrepreneurs can foster new connections and benefit from the large angel networks, accelerators and incubators associated with Calcutta Angels. they organize summits and conferences inviting professionals and aspiring risk takers across the country joining hands with other angel networks across the country.

The Bengaluru Angels
•Founder & CEO: Nirmal Bhardwaj
•Inception: 2014
•Key Person: Dr. Madhusudan Chakraborty

Silicon Valley of India is one of the highest rated spot for startups, and now with the help of angel Group, it is proceeding further in a rocket speed. The Bengaluru Angels is a trusted platform which nurtures the entrepreneurial ecosystem where startups germinate, grow and flourish. The Bengaluru Angels work with investors across varied geographies. The startups are selected based on process-driven due diligence. It builds corridors of linkages, business relationships, and investments on the foundation of domain expertise, integrity, commitment, and trust. Today Bengaluru has the highest number of startups and most number of unicorns. This network is completely owned and managed by Resurgent Business Pvt Ltd. This network co-ordinates with skilled entrepreneurs to collaborate with the smartest investors and angel investor networks by virtually supporting all aspects of the investment relationship, from initial pitch to successful exit.

In any ecosystem, what matters is learning, building and creating till you become an expert – Nandini Mangsinghka

Hyderabad Angels: Value Beyond Capital
•Founder: Kishore Ganji
•Inception: 2012
•Investments:72
•Key Persons: Rajesh Manthena, Pradeep Dhobale, Esha Rao, and Laxminath Gopisetty
•Notable Investments: Blu Smart, Health Sutra, Chai Kings, Hesa, Thrillophilia, Now floats, Twigly, and Bellplus Media

It is one of the most well-known angel networks in south India, mainly focusing on investing in early-stage, primarily technology companies. This network comprises of more than 120 investors, more than 25 partner companies, and made 50+ successful investments. Apart from India, they have prominent presence in leading hub of wealth the US, the UK, Singapore & the UAE. They have been successfully investing for more than 10 years. They have done fruitful investments in industries like Food, Retail, AgriTech, E-commerce, Consumers, Manufacturing, Health, Science Tech and more. They collaborate with other angel networks, incubators, accelerators, and institutes from all corners of the country to discuss, ideate, co-invest, and share knowledge. Widely famous EV cab startup BluSmart Mobility has recently raised $24 million from existing investors, founders, and leadership teams.

Taking everything into account, we can say that, Indian startup ecosystem has boosted itself tremendously and still it is booming with rocket speed. Total angel investment in 2022 was $22.3 billion. Angel investment is spreading to Tier-II & III cities in countries like India like storm and creating a new wave of regenerating the new generation. Government initiative like Startup India has also contributed widely in the wave of innovation elevating and igniting the future of India. Professional societies like the Angel Capital Association have come up which provide resources and best practices for angel investors. India has handful qualified angel investors who are pushing the young startups from behind to bolster their innovation in global platform. In coming year, Angel investors will invest Rs. 1000 crore in over 500 companies this financial year to inspire and encourage the students to think out-of-the-box to identify the hidden gem in them.