When starting a business, funding an initial investment becomes crucial as money is deeply required to make a business work. One of the most prevalent sources that fund businesses is angel investors. These investors are usually wealthy individuals who give capital to new startups with the expectation of earning a profit when the company succeeds. For novice businesspeople, getting angel investment is life-changing because they not only get funding, but also guidance and strong contacts. In this article, we will delve into principal resources where angel investment can be obtained, as well as the important points angel investors pay attention to prior to investing.

Resources for Securing Angel Investments

To attract angel funding investment, businesspersons must get various options where investors are actively looking for deals. Here are some essential sources to help turn your ideas into reality and help angel investors fund your company:

1. Entrepreneur Events and Summits

To get the right funding, one of the best ways is to participate in investor-focused summits and meetings. These events take place in places such as Delhi, Hyderabad and Bangalore which gives businesspersons the chance to present their ideas for funding. By going to such events, people are able to:

Get interested in meeting investors and different businesspersons.

Learn from the stories shared by other individuals.

Network with people who can be instrumental in your funding process.

With your idea in mind, you can present the business concepts at events, and you just might find an angel investor who supports your vision and is prepared to invest in your startup.

2. Websites and Apps

These days, technology has dramatically improved the accessibility of connecting investors and business entrepreneurs using various apps and websites. LinkedIn has emerged as one of the best tools for creating business relationships. Here’s what to do on LinkedIn:

Post about your business and how it can change people’s lives for the better.

Use serious or light hearted humor to make people want to attract and value your ideas.

Engage with people who matter by mentioning them or asking them to critique your ideas.

Now, investors like Rajan Anandan who have funded Unacademy, Travelkhana and EasyGov as well as Kunal Bahl the CEO of Snapdeal who has invested in Olacabs, Rapido, UrbanClap are readily available on LinkedIn. You can grab their attention when you join discussions on LinkedIn, and with time, you might win over an angel investor.

3. Best Options for Angel Investor Communities

Finding angel investors becomes simple once you integrate yourself within startup funding communities. These communities tend to have functions, offer networking services, and create partnerships between entrepreneurs and investors. A couple of prominent angel networks are given below:

Indian Angel Network (IAN): Started in 2006 and now spans over 10 countries with more than 450 local investors. Focuses on small deals of about ₹4 lakh to $1 million.

Venture Catalysts: A significant investor in India having funded over 57 deals in 2018 alone. Has raised an astonishing ¥125 crores and invests in the range of ₹3–13 crores.

Chennai Angels: Started in 2007 and has funded of about 50 crores across 37 start up. Tends to fund around 1.5 – 2 crores.

In these communities you can learn what investors expect when funding early stage companies, along with meeting a broader pool of investors.

4. Focused Groups

In order to receive investment from anangels it is advisable you focus on aligned groups pertaining to your market niche. For example, an EdTech group would assist in overcoming market hindrances within the EdTech sector.

5. Friends and Family

Your inner circle consists of family and friends who can also act like an angel investor. At times, they can be the first source of funding, until you secure a professional investor. You could:

Discuss your business proposal with them and outline the ways that they would profit from funding your business.

Guide them on the notion of angel investing through well-known examples of angel investing being done, this makes the process easier.

6. Focused Events

Attending conferences dedicated to a particular topic is another great way of meeting the right kind of angel investor. It could be a Technology conference or an Education summit, such events will enable you to meet investors focused on your area of interest.

7. Fundraising Advisors

Also called investment bankers, these advisors help startups raise funds with ease. Fundraising advisors almost always have a network of angel investors willing to be contacted and they can draft a pitch deck, develop ideas, and directly deal with the investors for you. Some take up fees while others use equity in the firm as payment. Meeting versed advisors will increase chances to get an angel investment higher.

What Factors Influence Angel Investors The Most?

Angel investors are usually more concerned about the potential of a product or business, rather than the money that has already been spent on it. Nonetheless, some aspects must be considered before opting to fund the projects. Here is n the most important factors that affect the decision of an angel investor:

1. Preparation and Research

Always collect information related to your industry, product, and market before contacting an angel investor. THe presentation must be accompanied by recorded evidence that justifies the claims made, Otherwise, consider working with a DTP agency to enhance the visuals of your presentation so that it delivers the data in a smooth manner.

But try and get information on the investor’s interests first, and as importantly, the attributes a presenting business has to possess in order for that investor to buy the deal.

Intermediate steps, like moving in scope or more broadly – for example, direct contact with some of their aides – could yield productive outcomes. There is point in time where you should, or can, hire a marketing professional who can assist you in this kind of proposal scrutiny beyond boosting the probability of success.

3. Knowing Your Numbers

An angel investor will have particular interest in the financial aspects of your company. Make sure you know the following numbers:

Your expected sales and revenue.

Your profit margins and projected growth.

Your costs of acquiring customers.

Being well-acquainted with your numbers signals that you have done your homework and are ready to take your business seriously.

4. Relationship Development (Friendship Cultivation to Fundraising)

Instead of immediately making an appeal for funds, concentrate on establishing a rapport with prospective investors. Follow them on social media or meet them at functions. Then leave a mark by displaying your commitment. Building trust will greatly enhance the chances of them investing in your rough idea or startup at the right moment.

5. Sincerity with a Dash of Confidence

Always assume that confidence is needed when pitching your business idea. Know how to hold yourself together regardless of rejection or criticism. Entrepreneurs who are appreciated are those who take:

Constructive criticism.

Willingness to change or make improvements on ideas.

A lot of effort to bounce back.

If you are confident about your product yet willing to accept constructive criticism, it is highly likely that you can take your business to greater heights.

Conclusion

Finding investors and firms to fund your startup idea should include angel investors. Using the recommended activities like events, online communities, and business networking, as well as knowing the expectations of an angel investor, enhances one’s likelihood of securing an investor. Investors should be approached with strong and positive vibes accompanied by readiness at every moment. From these tips, it is evident that success comes your way with the help of angel investors if only the necessary recommendations are followed properly.