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Are U Ready to Be an Angel Investor?

1. Is angel investing meant for everyone?

Angel investing or venture capital is not meant for those –

  • having surplus only for a short period of 3-4 years;
  • sitting on a large proportion in illiquid assets;
  • having low trust or belief in entrepreneurs and fear misappropriation of funds;
  • worried about failure of a few portfolio companies to return the invested capital;
  • looking for stable income as dividend or profit share on regular basis;
  • planning to meet expenses of a key event from the returns of angel investments such as child education or marriage;
  • already over-leveraged without adequate asset backing;

VC or angel investing should be a preferred choice if the person –

  • believe innovation creates temporary monopolies that lead to abnormal profits;
  • believe that good businesses reward with disproportionate returns although it may take time of 5 to 8 years;
  • wish to mentor a start-up entrepreneur and celebrate every win of our start-ups;
  • believe our first generation entrepreneurs can take a lead in changing the world;
  • wish to express your love for humanity by creating productive jobs;
  • you have arrived in life and wish to give back to the society for your success;
  • can be at peace on the principle of “seed-it, watch-it, reap-it”.

2. What are the aspects that HNIs should keep in mind before plunging into investing in start-ups?

Angel investing is about domain expertise, deeper understanding of entrepreneurial mind-set, offering entrepreneurial freedom while coaching them to stay focused on fulfilling their business vision, and engaging, supporting, & collaborating in the initial business modeling phase. Angel investors need to be as passionate about their start-up, as is the entrepreneur, while investor should not be sentimental about it.

3. How should Angel Investor approach their portfolio to maximize returns?

The risks are extremely high in the funding a start-up. During initial phase a start-up goes through every possible risk from people, technology, market, or customer validation. The only way to manage such risk is to build a portfolio of 10 plus start-ups. This does require significant time to manage the portfolio as well as an art of betting big on some ideas.

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11 Responses to Are U Ready to Be an Angel Investor?

  1. S.Saantosh says:

    Hi ,
    I am looking for an investor to support me in developing my business. I have a thorough knowledge of my Business how i can achieve it. any help from you.

  2. abhilash yadav says:

    Sir i have a great idea about the tecnology that change the path of economic market if we start at this stage. So i want to share my idea with you to help me for my powerful wishes.

  3. janardhan says:

    HI, i am looking for an investor to support me in putting my business idea in life. For this , I need a more thorough knowledge of how i can achieve it. I will appreciate any help from you.

  4. shrikant suresh shewale says:

    Give the details about angel investors

  5. VIKAS SHAH says:

    Interested in knowing more about Angel

  6. pawandeep Singh says:

    Looking for startups in :
    Electronics design
    FOod processing

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