How to Find Angel Investors for Startups in India
Introduction
The years 2021 and 2022 were great years for Indian startups. For example, in 2021, many startup companies moved to the public market, and they also raised money through IPOs. However, as a startup founder, you may have many questions. What are the best places to look for or how to find angel investors for startups in India? Will they invest money into your business? Investors and business angels play an important role in startup success. Also, it takes a lot of work and time to turn an idea into a billion-dollar business.
If you are wondering how to find the best angel investors and private investors for your startup, you are not alone. There is no doubt that angel investors in India are crucial to building and growing a startup.
Active angel investment networks are becoming a popular source of early money or seed funding for startups. However, finding the right angel investor for your startup is not simple. Where should you look? How can you tell a good angel investor from a bad one?
What is an Angel Investor?
Angel investors are wealthy or high-net-worth individuals who invest in business ventures at their early stages, providing angel capital for startups that need quick funding. They are also known as private investors, seed investors, or angel funders. Unlike venture capital firms that use investment funds, business angels use their own net worth to fund companies.
Compared to venture capitalists and private equity firms in India, angel groups for startups may also be more patient with entrepreneurs and business founders and open to providing smaller sums of money for a longer time period.
In many cases, potential investors are within an entrepreneur’s family and friends. The funds that business angels provide to startups may be a one-time investment, helping the business or firm get off the ground.
On the other hand, these funds could be ongoing capital injections to support and carry the startup company through its difficult and tumultuous early stages. If you are still trying to understand how to find angel investors for startups in India, then read on.
Tips for Finding Angel Investors for Your Startup in India
Business founders and owners looking for angel investors for startups in India can pursue various platforms to find the best business angels and angel investments.
Networking Events
If you like to connect in person, one of the best ways to get involved and meet potential business angels for your startup firm is by attending networking events. Angel investors are wealthy individuals and frequently attend these events.
You should ideally look around in your local community or nearby cities that host major events and grow your network. Seeding Kerala organized by Kerala Startup Mission, and TIECon by TIE Global are among the leading Angel Investor Summits held yearly.
High net-worth individuals and business angels in various sectors, such as health tech and blockchain, get together at angel networking events in order to promote early-stage investments and investment opportunities in the leading startups.
These networking events and conferences help bring together important angel investors and experts to boost and streamline the Indian startup ecosystem. Remember to have a business plan handy to send to these investors.
Explore Social Media Platforms
If you are looking for people interested in investing in startups, you can also rely on social media platforms, such as LinkedIn and Twitter. Social media has evolved into a very reliable and effective tool for raising capital. And it makes sense to join social networking websites, such as Facebook, to reach out to angel investors and startup investors.
Friends and Family
Another great option that business founders and owners have used to get their startup companies off the ground is the friends and family option to meet their funding needs.
If you’re building something you truly believe in, there’s no better way to tap into your social network than seeking investment from the individuals closest to you.
Active Angel Investors for Indian Startups
Thinking of connecting with angel investors for your startup, but not sure where to start? Here is a list of angel investors that will help you find angel investors for startups in India:
1. Rajan Anandan
Rajan Anandan is the Managing Director at Sequoia Capital. He was also the Vice-President, South East Asia (SEA) at Google, and Managing Director of Microsoft India.
Mr. Rajan is responsible for scaling Sequoia Capital’s popular flagship Surge program. This program is focused on early-stage startups in Southeast Asia and India. He joined Sequoia Capital from Google, where he led the Google India and Southeast Asia business for about eight years.
During Mr. Rajan’s tenure at Google, he also played an important role in expanding the internet ecosystem and infrastructure in the region, boosting adoption among businesses and consumers, and accelerating innovation. Before Google, he led both Dell and Microsoft in India.
Mr. Rajan is one of India’s most notable and prolific angel investors. Also, he has partnered with several early-stage startups in India, across a wide range of sectors and industries over the past decade.
2. Sanjay Mehta
The Mumbai-based angel investor is habitually among the most popular and active angel investors in India. As a serial investor, he has been a prominent figure in the startup world. As an angel investor, Mr. Mehta has invested in more than 150 global start-ups.
Also, four of his investments have turned unicorns. Mr. Mehta is also a member of the Indian Angel Network, B2B 1K Ventures, Mumbai Angels, CIO Angel Network, and Venture Nursery.
3. Anand Chandrasekaran
You may have heard of Anand Chandrasekaran. He cofounded Aeroprise in 2001, which is now listed on NASDAQ. Mr. Anand has held several important roles in different organizations for more than two decades of his remarkable professional career.
Named Fortune’s 40 under the age of 40, Mr. Anand is also a partner at General Catalyst. Chandrasekaran has held roles in leading companies such as Future Group and Facebook.
4. Anupam Mittal
Anupam Mittal is a leading businessman and began his entrepreneurial journey with the People Group. The group manages businesses like Makaan.com, Shaadi.com, and Mauj Mobile. Anupam Mittal is a leading Indian entrepreneur, former actor, angel investor, and business executive.
Over the years, Mr. Mittal has invested in over 50 startups including Druva, Ola, and Whatfix. Mr. Mittal, who was one of the sharks in Shark Tank India, recently invested in more than 10 Indian startups. Anupam Mittal is a serial investor and has investments in over 65 companies, most of which are startups.
5. Deep Kalra
Deep Kalra is another popular name in the startup world. He is the CEO and founder of MakeMyTrip.com, which is the biggest online travel agency in India. He founded the company in April 2000.
Founder and CEO of NASDAQ-listed MakeMyTrip, Mr. Kalra recently moved to a mentorship role, playing an important part in the company’s growth and expansion. Mr. Kalra was born in Hyderabad and grew up in Ahmedabad and Delhi. He invested in eight startups last year, including eka.care, Exotel, and PlanetSpark.
6. Ritesh Agarwal
Perhaps one of the youngest billionaires in India, Ritesh Agarwal is one of the leading names in the startup sphere. His hospitality unicorn OYO is heading for an IPO of INR 8,430 Cr. It has received an in-principle nod from BSE and NSE, which is impressive. He also invests in startups, such as Josh Talks, which has 13 investors including Vijay Shekhar Sharma.
It is worth noting that Mr. Agarwal invested in about 35 startups in 2021 via his family office, Aroa Ventures. Some of his prominent investments include retail tech startup Dukaan, B2B sales productivity startup Nektar.ai, and Zomato-backed magicpin.
7. Deepinder Goyal
The Zomato founder, Mr. Goyal, has been investing in startup companies for quite a while now. Mr. Goyal, who worked for Bain & Company in the past, has invested in many companies, such as health tech startup Pristyn Care, B2B e-commerce startup Geniemode, and HRtech startup Multiplier.
Deepinder Goyal knows and understands that keeping a backup plan is always an excellent idea to survive and make it big in the industry. Mr. Goyal started investing in startup firms in 2015 and has invested in many startup ventures, such as SquadStack.
8. Gaurav Munjal
Mr. Munjal is the CEO and founder of India’s second most valued and popular ed-tech startup Unacademy. Mr. Gaurav Munjal has doled out a huge amount and written more than 10 checks in his personal capacity mainly in the health tech and ed-tech sectors.
Mr. Munjal has a passion for tech and started coding in grade 12. He went to St. Xavier’s Secondary School and holds a B. Tech degree in Computer Science from Mumbai’s NMIMS University.
9. Rohit Bansal
Rohit Bansal is another top name in the industry. He is an entrepreneur and co-founder at Snapdeal. He is also one of the leading investors in Titan Capital. Mr. Bansal is Distinguished Fellow at ORF and has expertise in many areas, such as media, business strategy, and legal affairs.
In February 2020, Snapdeal made an investment in a startup Sanfe, which markets female hygiene products. The company also invested in Bira, Ola, Razorpay, and Beardo.
10. Ratan Tata
Ratan Tata is a prolific Indian businessman, entrepreneur, investor, and former chairman of Tata Sons. Mr. Ratan has mentored, supported, and profiled a number of startups, business ventures, and firms with investments, funding, advice, and more.
With considerable experience and names like Xiaomi, Urban Clap, and Moglix associated with him, Mr. Ratan is often hailed as one of the top players in the Indian angel investment community.
Final Thoughts
Angel investors are wealthy individuals who fund startup companies in many sectors. Going through the fundraising process is stressful for many founders, especially first-time founders without any prior experience in this area. It is important to vet potential accredited angel investors and build your network to get the best results and suitable funding. It is also a good idea to be active angel forums, and your city’s local angel investor networks.
