If you have- an idea that can stimulate growth; an idea that has the potential to create job opportunities; an idea that can make significant changes to the lives of common man; or an idea that has the potential to become an industry trend, then you have reached to a right destination. Many young entrepreneurs always in search of someone who can believe in their idea and provide all support which are required in the initial phase of their business. Here we have come up with an exclusive list of some prominent angel investors who have a rich history in assisting start-ups to flourish in their business.

Jeff Clavier:

Jeff is the founder of SoftTech VC who has shown tremendous zeal in supporting start-ups over the decade.  He has invested his deep expertise and valuable money to assist more than 200 companies in the last 10 years. In approx. 20 companies, he has made an investment of up to $6 million per start-up which reflects his ecstasy towards encouraging new companies.

Although, Jeff is more interested in investing in businesses related to e-commerce, mobile and infrastructure monetization but he has supported many enterprises across the business verticals in their critical stages and helped them to establish their mark in the industry. Many of such successful companies include- Fitbit, Sengrid, Evenbrite, Wildfire, Bleacher Report, Mint and Gnip.

David Lee:

David is an American investor who is known for his role as the managing partner at SV Angel which invested plethora of money to push the growth of Airbnb, Snapchat, Oscar Health, and Dropbox among others. His personal biggest investment till date is approx. $250,000 (but as the founder of SV Angel, he invested much higher). Many business magazines have recognized him as one of the Top 50 best investors for early stage businesses. David has a penchant for investing in businesses concerning to Big Data, Analytics, e-commerce and consumer internet.

Jeff Bezos:

Most of the persons who are into any kind of businesses must have heard this name. Jeff is the founder of Amazon who is also a prominent investor. He was among some of the early persons who believed in the idea of search engine in late 90s and became one of the first angel investor for Google. He invested $1 million in those early times of technological revolution when most of the common people not even exactly aware of what software really ‘does’. As the CEO of Amazon he has invested millions in various businesses famously include- BankBazaar.com ($ 60 million), LivingSocial ($ 400 million), HomeGrocer.com ($ 100 million).

On a personal capacity, he has invested immensely in many companies like Airbnb ($ 112 million), and Uber ($ 37 million).

Read More:  4 Things that Every Investor Must Know Before Diving Deep into the World of Angel Investing

Keith Rabois:

Keith is one of the finest investors around the world, who is known for driving five start-ups from their early stages to publishing their successful IPOs. He has also played an instrumental role in transforming many start-ups into $1 Billion entity (by providing the seed capital at the time of need). Those companies are YouTube, Airbnb, Wish, Yammer and Lyft. He prefers to work in loyalty programs, education, IT, sports, and marketplaces.

Personally, he has invested money up to $ 250,000 and helped many start-ups to flourish.

Aydin Senkut:

 Aydin, Founder and Managing Director of Felicis Ventures has made a repute of a ‘Super Angel’ in the industry with his meticulous investment skills. He has supported many companies which later became prominent across the world, famously include-Shopify, Fitbit, Credit Karma, Rovio, and Vicarious. He does not hesitate to invest millions if found the idea interesting. This is one of reasons why many walk towards Aydin when it comes to funding. Till date, he has invested millions of dollars in many businesses (Approx. $ 5 million) and helped more than 80 start-ups to transform their dreams into realities. His core interest area lies in businesses that deal in SaaS, personal health, 3D printing and healthcare.

Paul Graham: 

 In 2005, Paul started “Y Combinator” with the aim to provide seed funding to a large number of start-ups. Since then, Paul has invested a large sum of money in fuelling the growth of over 1300 start-ups.  Many of those start-ups have become a prominent face in the industry include- Dropbox, Airbnb, Stripe, and Xobni. What fascinates entrepreneurs about Paul is his caliber to pump millions in one shot. He has an impressive record of investing up to $ 1.6 Million that too for a single start-up. This much figure itself prove the worth of this investor in the minds of entrepreneurs who desperately needs funds at the initial phase of their business.

Although, which industry he prefers the most is still a secret but going by his previous track record and background check one can surely bet its technology-related business.

T.V. Mohandas Pai: 

He is a prolific angel investor who has supported more than 40 start-ups to succeed. He has funded millions of his earnings to support the financial and mentor needs of many companies like SAHA Funds, Zoomcar, Zimmber, Uniken, YourStory, and FairCent among more. He is the head of Aarin Capital Partner in Bengaluru, who is currently working on creating a robust financial eco-system of more than 10 funds to fulfil the capital requirements of an entrepreneur. Present him an innovative idea. I bet you will you not regret approaching him.

The list is endless. There are countless angel investors across the globe who are ready to fund your business. But before approaching such investors one should test the viability of their idea in real scenarios to crack a deal in the very first attempt.

Read More: 7 Tips to Attract Angel Investors towards Your Start-up

– Ashwini Deshmukh

When it comes to funding a start-up, many knock the doors of banks, and venture capitalist while others look towards angel investors with hope. Getting angel investors on board has its own significance and advantages as compared to venture capitalist and banks.

Angel investors have high risk taking capacity and can turn the fortune of your company to a whole 360 degree. But to convince an angel investor is not an easy task. It is thus important to understand what exactly an angel investor wants to see in your business at the time of ‘idea pitching’.

A Viable Exit Strategy

Any investor is hopeful to make a good gain in his/her investment. However, not all make profits in their investments. Any investor thus looks out for a viable exit strategy when he/she thinks that things don’t work out as per their goals. While most of the angel investors are patient enough to encourage the company in tough times too but it is natural for any lender to know how you are going to pay back if things do not executes as par plan or the company suffers losses. Giving the rights to sale the shares or gaining money from the mergers are some of the common exit strategy investors look to safe-guard their interest.

Provide the Platform to Actively Involve

Now-a-days many successful people want to invest into the areas which they have expertise in or in the areas they find thrilled about. Such investors not only want to share their money for your business but also ready to go an extra mile to make your entrepreneurial journey better and smoother. Investor these days want to have a say in your business for a greater success. They want to actively participate in developing your business by acting as a mentor for your company. By proving them such a liberty can not only make them feel valued but also helps your business with the expertise and knowledge that your angels carry.

Find the Thrill Factor

Always remember that most of the angel investors are successful entrepreneurs who have plenty of surplus money in their bank accounts. They are already wealthy enough and do not need extra money to sustain their lavish lifestyle. They just want to hear an idea and want to invest their money for the idea that gives them a thrill. However, every angel investor has his/her own reasons for investing in any start-up. Experts have categorised such investors into three categories: the economic, the hedonistic and the altruistic.

An economic angel investor is more concerned about gaining extra money on his/her investment while a hedonistic angel investor is most attracted with the excitement of creating something new. Contrary, an altruistic angel investor is thrilled by helping the community with the success of start-up in terms of more job creation, allied economic progress and other. Therefore, it is necessary to do some basic research on knowing investor’s thrill factor so that you can give extra stress on it during the investment pitch.

No Hockey Sticks

Entrepreneurs always want to impress investors with fascinating numbers concerning their future growth. Experts believe 90% of the businesses show dramatic initial growth numbers that most of the times go off-the-charts. Many refer to it as hockey stick and 99% of the time it does not make any impact on investors. Instead, unrealistic projections and unrealistic numbers can turn-off the mood of your angel and made them think again about investing in your idea. Smart investors like realistic numbers and impress by real-projections.

An Adept Management Team

Leadership is what ultimately decides the future course of action for any enterprise. Investors are thus very much keen to know more about the people on your company’s board. Angel investors get impressed if they see your business is in the hands of people who are knowledgeable, competent and trustworthy. A solid management team of numerous people who have proficiency in different aspects of business like marketing, sales, manufacturing, managing people and accounts creates a positive impression on investors’ mind. Having such adept professionals on board with rich industry experience develops confidence amongst investors into your company’s future.

Angel Investors Want Good Return

Angel investors have many other mediums to invest their money like stocks, mutual funds and other financial instruments. However, when someone invests in any start-up, his/her expectation is much more than just getting money back after a stipulated period of time. Angel investors have high risk taking capacity and usually look for a much higher returns on their investment as they can get from the stock market. According to Allan Riding, a leading expert on angel investing- “For every dollar that an angel invests into a company, he or she would like to take seven dollars out, after taxes, in seven year.” Therefore, if your idea does not promise a good returns over a period of significant time then it create problem convincing your angels.

Related: Why Angel Investors are good for your Business?

A Full-proof Business Plan

Angel investors get attracted more towards a company that have a solid business plans which can help company to survive even in the tough times. Such investors want to see a developed vision for your company which can help it to flourish all the times. They want to see that you have given though to every detail required to run a smooth business like financial projections, detailed marketing plans, and specifics about market.

In totality, if you have an idea that has the potential to revolutionize the industry or has the potential to become an industry standard after some time can make the angel investors to believe in your idea. Therefore, do a thorough check about the feasibility and economic prosperity of your idea before pitching your idea in front of angel investors.

– Ashwini Deshmukh

You have likely heard about companies raising substantial money for their new product or service or to expand operations. There is a lot that goes into getting the green light from investors to receive those funds. Investors ask critical questions that are important for the future of the business and the investor’s money.

But, first, what is an angel investor? Well, according to a blog post on CrunchBase.com, an angel investor is “typically a high net worth individual that invests in a new or small business, providing capital in exchange for equity in the company. Additionally, since the JOBS Act, angel investing has expanded and individuals, regardless of their annual income, can participate in equity crowdfunding.”

Before making an investment in a startup, it is important for an investor to consider more than just a return on their investment. More importantly, the investor must consider several factors that will paint a complete picture of the startup.

HERE ARE 11 THINGS ANGEL INVESTORS LOOK FOR BEFORE INVESTING THEIR MONEY.

• Company Overview: What makes the company stand out from others? What are the organization’s value proposition and future plans?

• The Leadership Team: Being introduced to the founders and leadership team of a startup team is critical for an angel investor to understand the expertise and history.

• Competitor Outlook: Investors are fully aware of the competitive threats for any business. Therefore, they are very interested in learning how a business plans to compete and stand out from the rest of the crowd.

• Customer Acquisition: An angel investor should ask a startup about the cost of customer acquisition and if any marketing plans are in play to acquire new customers.

• Product or Service: An investor should ask for a clear-cut view of the product or service being provided along with its distinctive features.

• Intellectual Property: An angel investor will inquire about the existence of trademarks, patents, or copyrights and ensure no violations or third-party rights are in questions.

• Financial Projections: Understanding the current financial climate of a startup is imperative for an angel investor. What metrics have the management team established? How much debt is the company in? Does income correlate appropriately to expenses? What are the organization’s assets?

• Scalability: Understanding plans for growth and scalability are crucial in determining if an investment can yield good returns over time.

• Market Size: Many investors are looking for new opportunities to ensure a business has solid growth potential. So, it is important to know the regional market and its significance to the startup’s product or service.

• Traction: It is important for startups to provide angel investors with good proof of concept and its ability to be effectively sold on the market.

• Business Plan: One of the most effective ways for a startup to present a storyboard format of their business and tie it into the company’s marketing strategies and financial outlook is with a business plan.

Spend your time and resources looking for the right investor for your business. Ask them questions about your concept. Receive and implement their feedback. Then, go for the juggler and ask them for the money.

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