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Angel funds

Angel funds generally invest their money in SMEs or startups that need finances at initial stages of their business for growing their business. Angel funds perform a feasibility study on the company’s financials, prospects, management team, and industry before parking funds into that company. Angel funds generally make a one-time investment in startups and SMEs at critical initial stages by injecting funds into their business, which helps those companies, grow their business. They pickup ownership stake in the startups for exchange or convertible debt in exchange for money invested by them in the startups.

Angel funds pay lot of attention to the quality and integrity of the founders of a startup. It is often the passion and commitment displayed by the founders that leads to business success, which will ensure stronger returns. Angel funds often look at how the startup perceives and captures various market opportunities and examine the company’s drive to achieve its maximum potential.

Angel funds tend to evaluate startups based on the efficacy and executional skills in terms of their business plan. Use of advanced technology, creation of intellectual property, and strong brand ethics play a big role in convincing angel funds to pump in money into startups. One of the key parameters angel funds use for taking a financing decision is to study the viability of startups to raise additional financing in case their business progresses well.

Following are some of the major advantages of procuring money from angel funds:

  • Startups can develop contacts with top venture capitalists and strategic business partners
  • They can benefit from expert advice
  • The rub-off effect of associating with top angel funds helps build credibility for startups
  • Associating with angel funds improves business and customer network for startups
  • Startups can develop contacts with top solicitors and investment banks.

To know more about angel funds or other Alternative Investment Funds (AIFs), call us on 022-28583333 or write to us at: www.altsmart.in

Nucleus House, Saki Vihar Road, Andheri (E), Mumbai - 400 072.


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