NARAYAN ZANTYE COLLEGE OF

COMMERCE BICHOLIM -GOA

Name :- Ankita Mapari

Class :- Mcom.Part 1
Roll no.:- 1014
Subject :- Fundamentals of Financial Services
Topic :- Angels

CONTENT
SR.NO TITTLE REMARK
1. MEANING OF ANGELS
2. DISTINGUISH BETWEEN ANGELS AND VENTURE
CAPITALIST
3. FEATURES OF ANGELS
 4. CHOOSING AN ANGEL
5. EXAMPLES OF ANGELS
6. TIE (The Indus Entrepreneurs)

MEANING OF ANGELS
An angel investor or angel is an affluent individual who provides capital for business
startup, usually in exchange for convertible debt or ownership equity.
Angel investor invest in small startups or entrepreneurs. Often, angel investors are
among an entrepreneur’s family and friends. The capital angel investors provide may
be one time investment to help the business propel or an ongoing injection of money
to support and carry the company through its difficult stages. Angel investor are
focused on helping startups take their first steps, rather than the possible profit they
may get from the business

DISTINGUISH BETWEEN ANGELS AND VENTURE

CAPITALIST
 POINT OF ANGEL INVESTORS VENTURE CAPITALIST
DISTINCTION
Size of Angel investor will kick start Venture capitalist will fully
investment your project with small invest in your company, help to
investment. grow etc. after agreeing your
ideas.

Stages of Angel investor will invest their
investment money on the early stage of the
product/company/idea
Venture capitalist will not invest
your ideas at early stage. They
will invest only at the later stage,
when company have good reason
for investment.

Decision making Angel investor make decision
typically on their own and are
not beholden to anyone except
perhaps their spouse.
Venture capitalist may have an
investment committee who will
work together to make decisions
so that they are as objective as
possible and won’t be swayed by
just one member’s excitement
over the deal.

Returns Since angels invest at a early Venture capitalist want 20-30%

stage of project. So they have a return over their entire
higher risk to take into account. investment.

FEATURES OF ANGEL INVESTOR

1. They are currently working or retired executives, business owners or high net
 worth individuals. They possess the knowledge expertise and funds that are
needed for a firm to start and grow.

2. They bear very high risk and go for dilution from future investment stages.
They seek high return for their investment.

3. They also assist the entrepreneurs with advice, provide guidance, help them
network with the people in the industry and also mentor the entrepreneurs.

4. They aim at creating great companies through value creation. In addition they
help the investor to get a high return on their investment.

5. They keep a close watch on the current development in a specific industry/

sector, mentor the entrepreneurs to become next generation leaders.

CHOOSING AN ANGEL
1. A genuine interest in helping you succeed:
Many of the best angels are also great mentors. They are most helpful to startup
owners when they are highly motivated and interested in helping your startup prosper.
Look for enthusiastic investors who are eager to learn about and engage in your goals
and mission.

2. A wealth of industry experience:

Ideally, your angel is a business owner who started his or her own company from
scratch and transformed it into a successful enterprise. It is also smart to choose
investors with experience in your field of business.

3. A stellar reputation:
An angel with an outstanding reputation can have a dramatic impact on your startup’s
success. This is especially the case if your investor has a track record of successful
investments and is heavily involved in helping you make valuable connections.
 4. Plenty of cash on hand:
While cash alone does not qualify a person to be an angel, it is very handy to have a
group of investors with enough "dry powder" (spare cash) to invest in future rounds.
Your investors should also have enough money to help you fund your startup without
sweating the money. Ie. if losing the invested capital is going to impact at all on their
future, then they should probably be investing that money in a less risky asset class.

5. The ability to work well with others:

An angel should be able to interact professionally with you, your business partners,
and any other key stakeholders involved in your startup. Avoid choosing investors
who exhibit volatility or controlling behaviors, as they could do more harm than good
for your startup.

6. Battle-tested:
It may seem counterintuitive, but the most effective angels are often those who have
faced challenges and adversity and survived .
Angel investors who are battle-tested often have superb problem-solving skills and
can help you overcome barriers to success. This adversity may have been faced in
their previous company or investee companies. It's worth asking how they handle
hardship, how they have helped in the past and how they could help you.

7. A realistic set of expectations:

Startups can be unpredictable, especially in the first few years. Avoid accepting the
help of angels who outline demands and expectations that are virtually impossible to
meet. Investors who demonstrate reasonable flexibility and realistic expectations
around reporting, communication and relationships are better choices.

EXAMPLES OF AN ANGEL INVESTOR

1. Vinod Dham - Father of Pentium chip
2. Kanwal Rekhi - Current chairman if TIE
3. Suhas Patil - Founder of cirrus logic. A semiconductor company
4. Prabhu Goel - Serial entrepreneur who has started three hi-tech companies as a
private investor.
5. Sharad Sharma - was a CEO of YAHOO! India before founding brand sigma.

TIE (The Indus Entrepreneurs)

The Indus Entrepreneurs is a silicon valley non - profit supporting startups through
networking and the raising of capital for a new and experienced entrepreneurs. By
2000, it had helped create business worth more than $ 75 billion.
TIE has 60 members in 17 countries. It holds several events throughout the year to
promote networking and raise capital for startups. TIE Global Summit II and TIE
inflect in silicon valley are the organization's flagship events. Besides the flagship
events, the organization connects with its members through a series of annual
gathering such as TIECON.
REFERENCE ​:
INTERNET
1. https://www.Investopedia.com/terms/a/angelinvestor.asp
2. https://www.quora.com/what-is-difference-between-Angel-Inve
stors-and-Venture-Capitals
3. http://www.blog.capitalpitch.com/choose-the-best-angel-investo
r-for-startup