Angel investors are individuals who provide capital for business start-ups, typically in exchange for equity or convertible debt, and focus on supporting businesses rather than maximizing profits. They evaluate potential investments based on various factors, including the founder's knowledge, the disruptiveness of the idea, and customer viability. Unlike venture capitalists, angel investors usually work independently and mainly invest in early-stage companies, although their involvement can come with trade-offs like reduced control over the business.

1. ANGEL INVESTORS
Presented By
Dr. N.Renuka Devi
Associate Professor
Department of Bank
Management
Ethiraj College for Women
Chennai

2. Who Is An Angel Investor?
⮚An angel investor is an individual who provides capital for a
business start-up, usually in exchange for convertible
debt or ownership equity.
⮚ Angel investors usually give support to start-ups at the initial
moment
⮚They are usually found in between tycoons family and friends.
⮚ They are better than other lenders for startups.
⮚They usually invests in person rather than viability of business.
⮚They primarily focused on helping the business succeed,
rather than obtaining a huge profit from their investment.
⮚They are the exact opposite of venture capitalist.

3. 3
What does an angel investor
look for?
✔ Does the founder know their business in-depth?
✔ Is the idea disruptive in nature and solving for an
existing problem?
✔ Is there a planned roadmap for the next 6-12
months?
✔ Is the problem big enough to solve ?
✔ Will the customers pay for getting their solution ?
✔ Will it make a difference to customers, ?
✔ Is there a measurable set of customers already
there ?
✔ Will there be repeat purchases?

4. “
4
✓ The Domain Angel
✓ The Super Angel
✓ The Previous-Colleague
Angel
✓ The Friends & Family Angel
✓ The Grouped Angels
TYPES OF ANGEL INVESTORS

5. “
5
✓ The Fellow-Entrepreneur
Angel
✓ The “True Believer” Angel
✓ The Financial Angel
✓ The “Sport Fisherman” Angel
✓ The Foolish Angel

6. S
6
❑ An investment from angel investors is not
debt
❑ Angel investor provide your business with
a better chance for success
❑ Angel investor might perform their due
diligence quite rapidly
❑ Angel investor are in all part of the world
❑ We can get to contact with their
community and network.

7. 7
DISADVANTAGE
S
❑ A price for a high tolerance for risk
❑ Future profit will be limited
❑ We will not have complete control over our
business
❑Angel investor come in expecting a way to
exit
❑ Don't expect to receive follow - up
investment

8. I. SOURCING
II. EVALUATING
III. VALUING
IV. STRUCTURING
V. NEGOTIATING
VI. SUPPORTING
VII. HARVESTING
SEVEN FUNDAMENTALS OF
ANGEL INVESTORS
8

9. 1. A DEPENDABLE AND CAPABLE
TEAM
2. A COMPLETED BUSINESS PLAN
3. VALUE PROPOSITIONS OF THE
PRODUCTS AND SERVICES
4. STATE OF THE INDUSTRY
5. UNDERSTANDING THE RISK
9
BASIC REQUIREMENTS OF
ANGEL INVESTORS
.

10. DIFFERENCE BETWEEN
ANGEL INVESTORS AND
VENTURE CAPITALIST
1. An angel investor works alone, while venture
capitalists are part of a company
2. They invest different amounts
3. They have different responsibilities and
motivations
4. Angel investors only invest in early-stage
companies.
5. They differ in due diligence 10

11. ROLES
OF
AN
ANGEL
INVESTOR
11

12. 12
⮚ Filling the equity gap in the start-
up phase
⮚ Investing in companies at a stage
where VCs are no longer active
⮚ Being an integral part of chain of
integrated finance tools
⮚ Contributing to the culture of
entrepreneurship in the region
⮚ Agglomerating the existing
investment capital in a region

13. 13
https://youtu.be/L08wwQ5l1i4

14. GEOGRAPHICAL DIFFERENCES
14
CANADA
20000 to 50000
CHINA
Softbank,
Goldman Sachs
& Fidelity