Investors Look For In Startups Before Investing

Not all startups are Investment ready & Not all investment ready Startups get Investment.

Some entrepreneurs get angel investment in their first few tries while taking ages for others.

With that said, We want to share with you the things what an angel investor in India look for in startups.

Because once you understand what an investor look in a startup before investing, you will surely put everything together and will not appear naive in front of them.

  1. Understanding angel investor.
  2. Angel Investment landscape in India.
  3. What an Indian Angel Investor look in startups before Investing. ( Leading Investors  shared their views)
  4. List of 100+ Angel Investors in India you can approach for investing.
  5. Questions entrepreneurs should ask before taking Investment.

Let’s first understand an Angel Investor?

Angel Investor is an individual who invests his or her own money in small startup and entrepreneurs.

The term “angel” was first introduced in the Broadway Theater, for affluent individuals who gave money for theatrical productions. The phrase “angel investor” was coined in 1978 by the University of New Hampshire’s William Wetzel and founder of its Center for Venture Research.

Angel investors can be professionals such as doctors and lawyers; business associates such as executives, suppliers and customers; and even other entrepreneurs.

The major difference between angels and VC’s is that angels are not only motivated by profits but also motivated by the idea and the joys of seeing the entrepreneur succeed.

Angel Investors usually invest in a startup which is in its initial stage, the accept risk and demand no or little control in return for a share in the company.

Many angels are successful entrepreneurs who have cashed out and now want to help others just starting out. While their expertise may be welcome, you need to ask yourself—especially if you’re used to being in control—whether you want someone looking over your shoulder and making decisions for your company.

Before we move further, I am sharing some of the stats about angel investment in India. According to a research done by Innoven capital shows Investments made by angel groups in India from 2012 to 2018.

The investor needs you as much as you need the investor. But being fully dependent on Investor to build your business opens you up for unfair valuation. It also means you didn’t put your skin in the game and that you don’t fully believe in your idea.

So first gain some traction and then reach out to investors to quickly gain market share. Your investor would feel a lot better knowing that their money is being used for customer acquisition rather than experimentation.

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