FEATURE > ANGEL INVESTING

Quick Facts: 7 things to know about Angel Investing

Definition

Angels are individuals who invest their own money into start up companies. Usually Angels also mentor the entrepreneurs in whose companies they are invested.

Range of Investment size

Ranges from Rs. 5 or 10 lakhs, up to Rs. 4 crores

Rs. 50 lakhs is a fairly typical amount to help get the company to the next level.

Typical Ownership range

20% - 50%

Valuation methods

Angels usually look at two aspects:

	How much value has been created to date?
	How large can the company grow, and how much additional capital will it take to get there?

Post-investment Involvement

Sometimes a Board seat.

Angels usually provide guidance on business strategy and models; connect entrepreneurs to experts and potential customers; and help raise other funds as required.

Angel Network

A formal association of individuals who will screen deals together, and may co-invest in a company. Not all Angels in a network will invest in a deal - it's an individual decision.

AdditionaL Resources