| Definition |
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Angels are individuals who invest their own money into start up companies. Usually Angels also mentor the entrepreneurs in whose companies they are invested. |
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| Range of Investment size |
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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.
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| Typical Ownership range |
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20% - 50% |
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| Valuation methods |
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Angels usually look at two aspects:
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How much value has been created to date? |
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How large can the company grow, and how much additional capital will it take to get there? |
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| Post-investment Involvement |
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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.
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| Angel Network |
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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. |
