the term 'angel investors' was originally used by wealthy individuals who would take the risk

of privately funding small business or shows, or even individuals who required hasty
finances. But now the term 'Business Angels' is used in a much broader sense and implies to
a network of likeminded people who have taken up the initiative to help start up businesses
with initial capital and other helpful resources.

These Angel Investors Network are considered a boon by most organizations as well as
individuals in India, who often had to shelve their plans due to shortage of funds. Compared
to our western counterparts who have innumerable options to take the help and services of
investment firms; Indian entrepreneurs still face funding problems since angel Investment
In India is yet to come of age. Except a few reliable firms such as IAN etc, there are very
few angel investors who offer valuable time and money to inexperienced individuals.

Starting Small Businesses is sometimes a really tedious task that includes appropriate
capital, planned business ideas, resourceful contacts, building a database of initial clients
and hoards of other responsibilities. But with the advent of these investment firms, giving
shape to new ideas and business proposals is no more a dilemma! A proper and honest
angel investment firm will not only provide initial funding of your business but other
essential requirements as well which includes:

• High quality and time to time monitoring, 

Members who are part of a Network Of Indian Angels usually consist of experienced CEO's
and successful businessmen who have been leaders in their respective fields with
commendable experience and expertise. They have extensive management experience
which can help your business to flourish in no time at all. But again, as mentioned earlier, it
is very important to find out some crucial details about the concerned network of Indian
angels such as:

• Details about the team members, their qualifications and their years of experience in the
industry.
• The strength of the firm and their goodwill in the market 
• Apart from funds what other benefits can they offer you? Whether they are open to
sharing their valuable contacts list with your firm? 
• Whether the business angels have worked in your particular industry? 
• What other resources can they offer, for e.g. access to office property, access to staff,
technical know-how etc?

All of this assistance is not free of cost though! Usually these investment firms ask for a
percentage of the profits made from the business in question. But the amount is nothing
compared to the innumerable and incomparable benefits that they offer. Seeking help from
Business Angels is perhaps one of the wisest decisions in today's competitive market that
can take your business to unmatched and incredible heights.

Jacklin Jonse has a 4 long years of career proficiency of working as a content writer.
Throughout the years, Ms. Jacklin has been writing content about SEO Company India and
business investors related issue and has offered some of the outstanding contents to our
viewers. My favorite business investors site is: http://www.indianangelnetwork.com
Article Source: http://EzineArticles.com/?expert=Jacklin_Jonse

Angel Investing & The Indian Angel Network

SME WORLD Bureau

Angel Investing is a new phenomenon in India but has been prevalent for decades in more developed entrepreneurial eco systems,
like the US. Entrepreneurs who have created large successful companies and created disproportionate wealth for themselves (and
their teams), understand the power of entrepreneurship.

Highest Risk

They usually prefer to continue creating new ventures but after having done first one or two ventures, they do not normally like to
take executive roles / CXO positions. They therefore seek to participate as a financial investor, provide strategic inputs and
sometimes even provide operational direction to founders / entrepreneurs who are starting up. This angel investing is an alternate
asset category in an investor's investment portfolio. Angel Investments are of the highest risk category in an investor's portfolio but
also provides for the highest gain when investments succeed. Hence, to reduce the risk on his investments, an angel typically
invests in a number of ventures so that he spreads risks as he knows that only a few of his investments will give him a bumper
return, but enough to cover the losses of all his other angel investments and give a good return to his overall portfolio.

To further mitigate the risk, he co invests with other angels as that helps him to individually invests a lower amount as well as the
venture gets its complete round of investment from the group of angels. Hence, angel groups start to get formed and collective
investments, leveraging each other's domain expertise and networks combine to add huge value to entrepreneurs, far beyond the
financial investment.

India’s First
 
The Indian Angel Network (IAN) is India's first, largest and fastest growing business angel network. Currently it has 125 members
from across India & overseas, comprising the who’s who of successful entrepreneurs and CEO’s as also leading institutions such as
IBM, Intel, Sequoia, etc. 

IAN has operations in multiple locations across India, is a co founder of the World Business Angels Associations and has special
relationships & partnerships with the country’s science & technology labs/institutions, defence research labs, incubators, angel
groups, VC & other industry associations in India and abroad. In 3+ years it has invested in 22 ventures across multiple sectors in
India & overseas. IAN has already had 4 partial / full exits and the last exit gave its investors 5X return on their investment over a
period of 15 months.

To read full article please subscribe SME WORLD

SME WORLD, spoke to Ms. Padmaja Ruparel of Indian Angle Network recently–
 

How did the idea for angel investment originate?           

India's entrepreneurial eco system is very nascent. Startups usually invest all the money they can garner from their savings, family
and friends and after that have no place to get funds of Rs. 2 to 4 crores. Banks need collaterals and VCs in India come in at much
higher level. Hence, this very early stage financing is what is required and is the critical gap being filled by angel investors.

How the IAN gets networked in India?

The investor members of IAN are high profile, successful entrepreneurs / CEOs and are very well networked in India and overseas.
The members leverage their networks to grow and help IAN. Secondly, IAN has built a very dynamic media strategy and brand
which brings IAN closer to entrepreneurs throughout the country.

How much investments have been done in the network of IAN so far?

 
As many as 22 investments have been done. The average size of an IAN investment is Rs. 2 crores.

What criteria IAN has to bring a new investor in the IAN fold?

We welcome angel investors from around the country and the world. Successful entrepreneurs, CEOs, industry leaders, etc. who
would like to invest in startups are welcome. We would like our investors to actively engage in diligencing deals, mentoring
entrepreneurs, engage in various activities of the Network. We do need a recommendation from our current investor members,
listed on our website www.indianangelnetwork.com

Which are the sectors or segments you are focussing for angel investing?

IAN is sector agnostic: we are open to any sector where scaleable businesses can be built. We are however, size specific: we
explore opportunities which require up to US$1mn, though we are open to co investment.

There is a perception in some quarters that angel investors could interfere with the management and growth strategy of an
enterprise they have invested in. And this may be one of the reasons as to why angel investment has not become a viable funding
option for SMEs in India. What is the truth? Your opinion.

Angels are people who have "been there, done that". They have run companies and can provide strategic inputs and operational
direction. However, they do not want to become CXOs or participate in the executive management of the company. However, they
can add tremendous insight to the growth strategy of the company and help the company to network around the world to help the
growth. Also, angel investors invest in a number of companies as that is the way they derisk their investments. Hence they usually
do not have the time from focusing on one business as they may still be running their own businesses/ companies, as well as
helping their numerous angel investee companies. And, if their investee company is doing well and growing, they would be happy to
relax and have their investment grow !