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Early stage investors


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Early stage investors are investors who invest in companies in their early stages of development. They include Angel investors, venture capitalists and seed funds which fund these startups in return for an equity stake in the company. These slides present a brief overview of the kinds of early stage investors and their investing strategies.

Published in: Business, Economy & Finance
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Early stage investors

  1. 1. Early Stage Investors
  2. 2. • Early stage investors are quite unconventional.While there are investors who invest billions inwell established firms for a minor stake, theseEarly Stage Investors are on the look for freshtalent.• Out of the box ideas that could pay richdividends to their investments. They believethat these startup companies in the bud mightone day grow into huge fruit bearing trees.• The success stories of startups likeGoogle, Infosys, Flipkart and Amazon haveonly increased its credibility and madestartups a hot sector for investments.
  3. 3. Who are these Early Stage Investors?• The term early stage investors encompasses theAngel Investors, Angel Groups, VentureCapitalists, Seed funds and every otherorganization that fund startups in their earlystage of development.• While there are differences in the sort ofcompanies they fund and the amount and kind offunding, they operate on one basic principle:Theyprovide funds to the Entrepreneurs and then takea percentage stake of the company.
  4. 4. Angel Investors• Angel Investors are wealthy investors with alittle or no market know how, who provideseed funds to the startups.• They are usually people who’ve had years ofexperience in the Investment field and arelooking for new and lucrative fields forinvestments.• They usually don’t interfere in the working ofthe company as long as they get their Returnon Investment.
  5. 5. Venture Capitalists• Venture Capitalists, on the other hand, lookfor companies eyeing expansion. They usuallyfund the second round of investment that theentrepreneurs need once they’re exhaustedwith the seed fund.• They also look into the working of thecompany, guide them and help steer theircompany through the financial and legalroadblocks that they might encounter.
  6. 6. • The funds thus generated are used by theEntrepreneurs to get things off the ground.• The initial market analysis and the productdevelopment would be a part of this.Utthishta is one such seed fund that providesseed funds to startups in return for an equitystake in the company.
  7. 7. • Early stage investors are usually peoplewho’ve had rich years of experience in theInvestment sector, might have beenEntrepreneurs themselves and would want tosee the next generation of entrepreneursflourish.• Not only do they provide them with the seedbut also the financial and legal assistance thatthe Entrepreneurs nee during the initial stagesin establishing a company.
  8. 8. • Statistics say that only 2 out of 10 startupsbecome successful, the rest might not evenachieve breakeven.• Despite the risk involved the rewards that theInvestors reap from the successful ones morethan make up for the loss.• So, the number of Early stage Investors isquite on the rise and so is the number ofstartup companies that have managed tocreate waves in the Indian Market what withthe innovative path they employ and out ofthe box ideas they implement.
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