An angel investor is an individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Their primary focus is on helping the business succeed, rather than obtain a huge profit from their investment.

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