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Giving a thumbs up to SharkTank, Kunal Bahl, the CEO of Snapdeal, on Sunday said angel investing has gone mainstream in India as it gave wings to the dreams of countless entrepreneurs.
"In the era of #SharkTank, angel investing has gone mainstream in India, giving wings to the dreams of countless entrepreneurs in our country," Bahl wrote on Twitter.
For those, looking to get an in-depth perspective on how angel investing works, its history and strategies, the Snapdeal CEO suggested a book by Mohammad Mustafa: Angel Investing: The Untold Story of India.
All you need to know about becoming an angel investor in India
Individuals can become angel investors in two ways. First, they can source ‘direct deals’ or investment opportunities in startups through their own social network.
Second, they can join platforms dedicated to angel investing such as Angellist, Mumbai Angels and Let’s Venture. These platforms provide avenues for startups to approach individuals for angel or seed funding.
After the Covid-19 pandemic, most platforms conduct their operations online. Entrepreneurs pitch ideas to startup investors over Zoom and other online meeting channels and investors then decide whether to invest.
The angel round is the very first round of funding for a startup that is typically followed by venture capital rounds such as Series A, Series B and so on.
Venture capital rounds are generally followed by late stage or pre-IPO funding and ultimately followed by an initial public offering (IPO).
The big advantage of entering a company at angel or seed round is the ability to gain from its growth long before it becomes publicly listed. The big disadvantage is a much higher level of risk.
However, going through an angel platform can reduce the risk. Typically, these platforms perform an initial round of due diligence before startups are allowed to pitch and even after investment they perform additional checks and monitoring of the startups.
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