September 6, 2022

7 Steps To Becoming An Angel Investor in India

An investor gives capital for the generation of additional wealth. Investors are of various types. Some specialize in specific industries, some provide equity funding, and some provide debt financing. The Indian economy is rapidly growing, attracting many new investors from various countries worldwide.

For business and tech entrepreneurs in India, the angel investor has always been a valuable asset. Angel investors are considered to be some of the most sought-after resources for funding by startups and other early-stage businesses.

But what is an angel investor?

Angel investors take ownership or shares in the company in exchange of giving capital to startups.

According to KPMG, there are currently 1,300 active angels investing in India and they invest an average of $200K each year.

While investing might seem easy but it is not as a lot of time, research and patience is required. If you want to be an angel investor in India, you need to know these 7 steps that are needed to take care of before starting the journey.

SEBI requirements: If you have decided to become an angel investor in India and then you have to look into the criteria set by the SEBI. Once you pass the criteria then you are good to begin your angel investor journey.
Have a plan: One of the most important things that everyone should do before starting is to have a plan. This can help in identifying one’s financial risk tolerance and what type of company they want to engage with.
Find an organization: There are many organizations that help match potential investors with startups they can invest in. These organizations will also provide the necessary training so that investors are well-informed about how these investments work and which ones will best suit them.
Educate oneself: Before investing, it is very vital for you to understand all aspects of investing. There are multiple incubators and groups that give classes and workshops to help you understand the value of startups, the journey of angel investing, how to identify potential startups and exits.
Make connections: Having other angel investors by your side is a great way to understand the existing market and your field of investing. This is also the perfect way to build your connection network for future investments.
Strategies for your investments: This stage is a bunch of questions that you need to have answers for before investing:
- Which project, sector or industry are you interested?
- How much amount are you willing to invest?
- Which type of deal (lumpsum or staggered) will you prefer?
Your first investment: Your first investment might make you excited but make sure you have thoroughly researched and well-knowledged about all the basics of investing. Once you have confidence and see a great opportunity take a step ahead.

Angel investors are early-stage investors. These are those people who fund ideas that the general public might not be willing to invest in. Most of the angel investors in India are successful entrepreneurs, who have earned their money by being part of India’s startup culture.

Hence, if you are ready to take the calculated risk, have the capital to invest and are looking for a perfect Indian angel investors network then Hyderabad Angels is the place for you. Hyderabad Angels guide you through your angel investment journey and bring the opportunity that perfectly matches your interest.