How angel investors add value to start-up beyond funding?
Angel investors, are the individual who invest their money, time & a lot more into a start-up with an intention to help and mentor them to grow and get off the ground. When right kind of investor even when investment is low will bring in their expertise and can mentor your start-up in business development & technical aspects. The knowledge that angel investors posses goes beyond the money and hence add value beyond the rupees.
Mentoring In the initial stages of any business be it a start-up or a small business, founders are in vulnerable position and need help with mentoring to survive and scale. Angels provide this handholding support and provide insights along with investing their time & resources in to support start-ups grow.
Angels are entrepreneurs and experienced doers themselves and hence bring in their valuable experiences and problem-solving skills they possess after overcoming hurdles in their own start-up for years. This’ll help you avert similar situation and prepare you to handle them.
If your angel investor is a seasoned practitioner in your industry, they will provide the necessary expertise in finding solution to issues and other technicalities. An experienced angel will guide you better on how to tailor your business model, have better market penetration, and in decision making.
Contacts and Networks
Being an entrepreneur themselves, Angel Investors will have several contacts & strong networks that they can introduce your start-up to and help you build strategic partnerships. They will be able to introduce you to more investors if you need help with growth, expansion & funding. They could promote your start-ups within their networks.
Angel investors, being outsiders, provide a third-party evaluation of your start-up. They often ask questions and critically examine your plans, work & execution. This is important for you to streamline your work.
Visibility & Credibility
Being associated with established Angel Investors gives your start-up credibility & visibility. This helps for you to obtain funding in the future, garner media attention & bring established consultants (marketing/sales etc) on board.
In conclusion, getting the right kind of investors will go a long way in determining your start-ups level of success and reach. Therefore, it is important to look at the value your angel investors can add to your start-up beyond the funding that they provide.
Learn about the Roles of Angel Investors:
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.