Found it good that you are planning for a start-up, and even better that you think to give it a strong base first, putting efforts to enhance your start-up idea and getting it on board is two shores, and to cut-off distance between them, investors are the one who helps. HOW? We are here to answer that only, with a list of top investors in India for start-ups.
Who are Investors?
An investor is a trunk in itself, that reinforces the branches such as start-ups and businesses by committing them economical support with an agenda of generating the same in return. There are many ways in which this commitment can get delivered, such as an assurance to pay creditors, loans, equity investments, tangible assets, or even the contribution of work. An investor usually commits in exchange for either a fixed return (such as dividends or interest) or the possibility of eventually selling the investment to a third party at a greater price than the initial investment. An individual or corporate entity both can play the role of investor.
Role And Importance Of Investor In Start-up
When we talk about any business its financial status stands as the most crucial factor, and especially for start-ups investors are like a backbone, funds are needed for each step from the beginning, enhancing and expanding. If you read that pinpoint correctly you might have noticed that it includes all the accelerations of a company. Now let us discuss the two main “why” and “how” of finding investors for start-up business in India
- Investors’ major role in a start-up is to provide finance, to bring a venture company off the ground. The procedure of transforming ideas into a service | product demands an ample amount of money, time, and effort.
- Having investors also helps you with growth in networking with companies of the same niche. As both of your goals will be aligned, the investors will want you to succeed, they’ll show you the right direction, and people that can find beneficial for the venture company
- Once the business starts receiving funds unfolding different opportunities gets easier. Investors are often profit-driven and want a practical return on their investment in your firm. As a result, they can assist you in developing a sounder company strategy and financial model, by bringing their extensive knowledge to the table and in navigating the unpredictable hazards that your business may face. They will always aim for more profit with usually no amount of loss.
Types of investors in India
The one who believed in your ideas:
Family and friends, if we talk about live facts, even Amazon, which was founded by Jeffrey P. Bezos, started with an investment of his parents’ savings. Because at the start-up stage many are not prepared with on-paper work, making one invest on a small pie of evidence or just an idea might be crafty. Family and friends are the people who know you and believe you the most.
Banks And Government Agencies
Aren’t the investors, but can be a helpful source to get capital. As mentioned helpful, but not easy as it needs repayment at a fixed period of time. This step can affect your profitability statements too. One thing to keep a note in mind is banks’ procedures do arrive with restrictions and limitations, which can’t be easy to handle by start-ups, all over it depends on the venture requirements.
Angel Investors and Groups
Angel investors, also known as private investors and seed investors, are affluent individuals who invest in small businesses or entrepreneurs in exchange for a share of the company’s ownership. Angel investors for a start-up in India can frequently be found at networking events, and leading entrepreneurs’ references, and also there are many online platforms that help an individual to get in touch with them easily. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing project to support and carry the company through its difficult early stages. Meanwhile, the group of angel investors who band together to make investments is known as angel groups, being a group enables them to invest with more confidence, larger check, and lower risk exposure.
Venture Capital (VC)
It refers to private equity that provides financing to start-up and small business owners with the potential for long-term growth; these ventures generally belong from well-off investors, investment banks, and financial institutions. It does not necessarily have to be in the form of funds; it may be in the form of technical or management skills. Venture Capital is accurately becoming widespread, as it helps new firms or projects with even a short working history (under two years), especially if they lack access to capital markets, bank loans, or other debt instruments.
Business incubators are initiatives that are specifically geared to assist young businesses in innovating and growing. For start-ups to grow, they generally offer workspace, mentorship, education, and access to investors. During the early phases of business incubation, these tools enable firms and ideas to take shape while operating at a cheaper cost. Incubators need an application procedure and, in most cases, a commitment for a set period of time.
How to search for investors for start-up business in India
Fortunately, tons of online outlets have emerged to assist businesses in connecting with investors, addressing one of the most significant obstacles faced by young company founders with a restricted network. Instead of chasing intros and seeking investors, these platforms empower entrepreneurs to spend their valuable time developing something that their consumers want.
Lets Venture is a popular start-up investment platform. Let’s Venture’s initial beta was founded by Shanti Mohan, an entrepreneur and angel investor in the year 2013. It is a platform that links approved investors with entrepreneurs. It simplifies and streamlines the fundraising process for both investors and companies. This platform has assisted over 300 entrepreneurs in raising $200 million in their early stages. The money comes from 28 active syndicates, 6500+ approved investors, micro funds, and family offices.
It is a well-known website where entrepreneurs may find employees as well as investors with whom to collaborate for funding. Its primary goal is to assist tech entrepreneurs, and it performs admirably as a dependable tool with a wide reach in the sector. To be featured in the directory, you must create a personal profile as well as a corporate profile which can help your business receive visibility and put you in the appropriate room to find investors, as well as allow angel investors to find you.
Angel Investment Network
Angel Investment Network is a top angel investor in India offering a variety of locations, industries, and investment sizes which makes it a leading online platform. This variety makes it a great marketplace for both start-ups and investors. The best part is that you can register for free as an investor. Investors can directly message and chat with their desired entrepreneurs. This develops trust between both players.
Our surroundings are gradually improving to give the start-ups much more support. We are now quite sure that if you are thinking of a start-up there are many opportunities present to lend a hand and help you to raise your start-up to the pinnacle of success.
Just like the above all pinpoints. We, My Valuation is also an IBBI registered firm of valuators that help start-ups to obtain accurate valuations of their business and create a firm pillar for their future projects.