India is considered the land of trade and innovation. So, it’s no surprise that it ranks third on the list of countries with the most unicorn startups. While they have the idea and the passion, they lack one of the most important resources: funding.
That’s where the role of Indian angel investors becomes critical. As the backbone of the Indian startup ecosystem, they support startups and build
them from ground up. Let’s understand how Angel Investors in India are creating the next unicorns.
Rise of Angel Investors in the Indian Startup Ecosystem
Right now, there are 71 unicorn startups in India, supported by angel investors (source). This evolving funding landscape means startups don’t have to struggle to pursue VC firms or corporate funding. The rise of the HNI has opened the gates for new sources of startup funding in India.
Angel investors are now at the top of the list, investing in startups, taking high risks and enjoying better returns when the startup becomes an unicorn.
Nowadays, private equity funding takes a significant share in the startups compared to VC funding.
It is essential to understand that angel investment isn’t just about financial support; it also includes providing guidance to the entrepreneurs. That’s why many successful entrepreneurs, like Kunal Shah, Anupam Mittal, Kunal Bahl, and more, are becoming Indian angel investors to provide guidance, support, and develop the Indian startup ecosystem to make it easier for future startups to grow.
How are Indian Angel Investors creating the Next Unicorns?
Let’s understand the role of angel investors in India and how they help startups become unicorns.
Funding at the seed stage
Success is possible if the foundation is strong. That is why, when angel investors fund startups at the seed-stage they provide a sturdy foundation, offering guidance and capital. A single angel investor can contribute between Rs. 3 Lakhs and 20 Lakhs. So, when you pool funding from different angel investors, you can raise a significant amount to grow the startup.
Supporting startups at the most critical stage
By becoming angel investors, industry experts and existing entrepreneurs create a supportive startup ecosystem. Their primary goal is to support
industry growth and profit from promising startups.
Entrepreneurs at critical stages of their startup get the guidance they need. Whether they need support finding the right product-market fit or creating a prototype, these investors support the startup’s growth.
Guidance for further funding
Angel investors help startups connect with other investors, angels, or VC firms to secure further funding. Indian angel investors can help startups refine their pitch. Regardless of the funding-stage, angels can guide the entrepreneurs in highlighting their strengths and finding the right investors.
Build a network in the startup ecosystem
Angel investors in India can help you connect with fellow entrepreneurs to build strategic relations, industry experts to help you improve your startup, and investors to secure further funding. They can connect you with Angel Networks in India to find other angel investors to increase your funding pool. It helps you start up, grow, and thrive in the market. Indian angel investors are essential to make a good impression on the market.
How to Find Angel Investors in India?
There are around 125+ angel investor syndicates and more than 26000 angel investors in India (source). The pool is large and picking the right one can be the difference between success and failure. The following tips will help you attract and connect with the right angel investors.
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Attend startup events
Startup events provide an excellent opportunity for early-stage startups to get exposure, build a network, and find investors. Events like the Global Startup Summit by 21BY72 help you pitch your idea to investors and connect with fellow entrepreneurs. You can also learn about the industry trends to create strategies and boost your startup growth.
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Connect with an angel network
Established angel networks across India provide founders with structured access to diverse investors and fellow entrepreneurs, creating invaluable
connections for startup growth. Partnering with reputable networks such as IVY Growth Associates, Indian Angel Network, and Chennai Angel can
significantly accelerate your startup’s trajectory by providing not just capital, but also mentorship and strategic introductions. Consider beginning with local angel networks in your region to build credibility before strategically expanding your outreach to national networks with broader resources and connections.
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Stay active on social media
Angel investors often stay connected to the business world through social media. So, you should have a social media presence to share helpful content,
industry updates, and small wins of your startup to gain the interest of the investors.
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Find referrals
A referral from a trusted standard connection can make building trust with the angel investors easier. Therefore, networking is essential for startups to attract investors.
Conclusion
Every unicorn startup in India starts small and grows with the support of some angel investors. Indian angel investors provide funding and guidance and extend their network to help you grow and find more investors. You can find angel investors by attending startup & pitching events, connecting with angel networks, and finding referrals from networking. Our Global Startup Summit is designed to help entrepreneurs and investors connect and boost the Indian startup ecosystem.
FAQs
1. How to approach angel investors in India for funding?
The first step to reaching angel investors is to find investors interested in your sector. Now, you need to create an engaging pitch and pitch deck to present to the angel investors in India. You must highlight the problem you’re solving and the growth potential of the idea. If you can gather positive customer reviews from the target audience, it will help you secure funding from the angel investors. You can find investors in startup events, social media, and angel networks.
2. How to become an angel investor for startups?
You must have the finances and the risk-taking ability to become an angel investor in India. Start by understanding the Indian startup ecosystem and
select a few industries in which you can understand and guide the startups. You can connect with angel networks in India to learn more about investing and building your network. Attend startup events to learn industry trends and build your network with fellow investors and startups.
3. What do angel investors look for when investing in startups?
As angel investors invest in early-stage startups, they focus on the vision of the startup and the team you have to achieve the goals. You must provide them with some stats on the market fit, scalability of the business, industry trends, and the potential returns on their investment. The investors also inspect the market competition and what value you provide to the users that sets you apart from the competitor.
4. What are the benefits of angel investors for startups?
Indian angel investors play a vital role in creating unicorns. They provide the first external funding to the startup to help them validate their idea, build MVP, and find the perfect market fit. They also offer expert guidance to entrepreneurs when making startup decisions. Angel investors help the startup build its network with entrepreneurs and investors to boost its startup growth. Securing funds from credible angel investors enables you to establish a good brand reputation.
