Top 10 Angel Investors In India In 2022
A wealthy individual is an angel investor, also known as a private investor, seed investor, or angel funder, who invests in small businesses or entrepreneurs for a percentage of the company’s ownership. Angel investors are typically found among the friends and family of an entrepreneur. Angel investors might give a one-time investment to help a company get off the ground or a continuing injection to help it grow and succeed in its early stages.
Understanding Angel Investors
Individuals who want to invest in enterprises at their earliest stages are called angel investors. Typically, these high-risk investments make up fewer than 10% of an angel investor’s whole portfolio. The majority of angel investors have excess funds and are seeking a higher rate of return than traditional investment options can provide.
Angel investors offer better conditions than conventional lenders because they are more concerned with the entrepreneur’s ability to start a firm than with the viability of the enterprise. Angel investors are more interested in supporting enterprises in the early phases of development than in profiting from them.
Informal investors, angel funders, private investors, seed investors, and business angels describe angel investors. Some angel investors pool their funds through online crowdfunding platforms or forming angel investor networks.
Who Can Be an Angel Investor?
Angel investors are typically those who have achieved “accredited investor” status, but this is not a requirement. An “accredited investor” is someone who has a net worth of $1 million or more in assets or has earned $200k in income in the last two years, or has a combined income of $300k for married couples. On the other hand, being an accredited investor is not the same as being an angel investor.
In essence, these individuals have both the financial means and the willingness to invest in companies. On the other hand, Angel investors are more tempting to cash-strapped entrepreneurs than other, more predatory sources of finance.
Types of angel investors
Angel investors are typically earned the status of “accredited investor,” though this is not required. It’s crucial to keep in mind, though, that an accredited investor isn’t always an angel investor. Angel investors must have a passion for funding businesses to qualify.
Angel investors, unlike venture capitalists, usually invest their own money. This investor bridge the gap between seed funding from friends and family and venture capital funding, which may be required for a more strong firm.
Angel investor is a broad term that refers to a variety of people who invest in various ways, including the following:
Family and friends: This is the most popular source of startup funding, and it’s usually where they start seeking money.
Wealthy People: Professionals with a high net worth, like doctors, lawyers, or successful business people, are typically willing to spend a substantial sum of money in exchange for equity in a business, depending on the business.
Groups: A growing number of angel investors are opting to work as part of a group. This considerably increases the level of investment possibility.
Crowdfunding: This is a kind of funding that is getting more popular. It entails big groups of people investing small sums of money online to achieve a specific financial goal.
Angel investors’ advantages and disadvantages
Angel investors have both advantages and downsides when it comes to funding:
Advantages of angel investors
- The biggest benefit of getting cash from an angel investor is less risky than taking out a small company loan. An angel investor, unlike a bank, does not need repayment because they receive equity in exchange for capital. Angel investors are often seasoned investors with a long-term approach to investing and are aware that it may take a long time to see a return on their investment. In addition to investment opportunities, many angel investors are looking for personal chances.
- Angel investors can also guide the startup because they have a lot of business experience. They are invested in your company’s success and can provide crucial advice and insight. According to research, firms funded by angel investors are more likely to develop, provide a higher rate of return, and stay in business for a longer period.
- Being affiliated with the investor lends credibility.
- Contact information for possible clients or workers
- Professional relationships with investment bankers, accountants, lawyers, and other experts
- Knowledge of the market and techniques employed by similar businesses
Disadvantages of angel investors
- While angel investors make it feasible for entrepreneurs to launch their businesses, there are certain drawbacks to this funding method, like the loss of equity. Many entrepreneurs give away between 10% and 50% of their business in exchange for capital.
- Within the first five to seven years, angel investors might expect a good return on their investment, perhaps up to ten times their original investment. This can put you and your employees under even more stress. Assess if the business can develop at the rate an investor expects before accepting investment and setting growth goals.
- After investing money in a startup, most angel investors take an active role in the company. Experiential angel investors, for example, may prefer to have an exit strategy in place, like bringing a firm public or selling it to a larger corporation. They might try to persuade you to sell the company before you’re ready. Conversely, if you give up too much equity, they may choose to replace you with a more experienced leader, thereby eliminating you from the company you founded.
How to decide if angel investing is a good fit for your company?
If you’re considering receiving an angel investment, here are some things to consider:
1. Make sure you have a business plan.
Create a solid business plan before taking financing from an angel investor—or even approaching someone about funding your venture. Whether you’re looking for cash from a lender or an investor, you’ll need this. Angel investors want to see a comprehensive and convincing business plan. Financial estimates, ideas for how you will market the business, and specifics about the target market you wish to seek are all part of this.
2. Be specific about the investor’s offer.
Put in writing what the investor will provide your company in terms of non-financial services, as many angel investors want to be involved in the companies they invest in. Participating on the board of directors of the company, serving as a mentor, or taking on a leadership role are all examples of this. While your greater involvement, as well as the information and experience you gain, are beneficial to the organisation, it’s always a good idea to have expectations written down ahead of time.
3. Define your roles.
It’s also crucial to establish a clear understanding of each person’s responsibilities, as the angel investor may have ideas about running your company. By establishing responsibilities early on, you can lessen the possibility of a later disagreement.
The Top 10 Angel Investors in India in 2022 are listed below.
1. Sanjay Mehta
Sanjay Mehta, a technology investor and venture capitalist, has risen to prominence in the investing world due to some of the major triumphs he has seen throughout his decade-long career. The most significant was the 280x return after exiting Ritesh Agarwal’s OYO after an early investment in the hotel’s aggregator, preparing for an initial public offering.
As a private investor, he has invested in over 150 firms around the world and has watched four of them become unicorns, making him the only angel investor to do so. Aside from OYO, these unicorns include CoinDCX, a cryptocurrency exchange, Block. On all supported startups, Mehta’s portfolio has a 103 per cent internal rate of return, compared to the industry average of roughly 30%.
Now that he’s moved on from investing in his name, Mehta has established 100X. VC, a Sebi-registered fund sponsored by Mehta Ventures Family Office, invests in 100 India-based startups each year.
In a candid interview with Business Today, Mehta said it’d been a “fantastic ride working with entrepreneurs” and that he now hopes to replicate his success as a private investor with 100X.VC, which he’s establishing as a multi-decade organisation, not simply a fund.
2. Anand Chandrasekaran
Anand Chandrasekaran is an angel investor and entrepreneur. He is a product management executive vice president at Five9. Anand brings to Storm a passion for products, a comprehensive understanding of the mobile ecosystem, and a track record of success as an entrepreneur. At Yahoo!, he is presently in charge of mobile product management within the search product division.
Before Yahoo!, Anand was Director of Product Management at Openwave. He was responsible for new product development and day-to-day product management for the mobile mediation product line, which served over 200 million subscribers daily over 70+ mobile operators.
Before joining Openwave, he was CTO and head of product at MorfMobile, a platform that specialised in mobilising premium content and services. Anand previously worked at MyToday SMS (India), a mobile content publisher with over 17 million monthly mobile subscribers and over 12 billion SMS messages distributed each year.
He previously co-founded and helped create Aeroprise, and under his leadership, the company’s mobile personalisation solutions became the most widely used mobility tool for service management in the world. It was bought by BMC Software.
He has an M.S. in Electrical Engineering from Stanford University a Bachelor in Engineering from PSG College of Technology in India. He has attended the Harvard University Global Leadership and Policy Program. Anand was recognised as a Young Global Leader by the World Economic Forum in 2010 and one of Silicon Valley’s 40 rising stars in 2011.
3. Sandeep Tandon
Sandeep Tandon is a mentor, investor, and technology entrepreneur. He is a co-founder of FreeCharge, India’s first mobile payment platform. He’s also the Managing Director of Tandon Group, a technology catalyst that owns a number of firms and invests in startups in India and North America.
He is a frequent Angel Investor and serves as a mentor to several technological firms. He has been working in the technology field for over 20 years. As of September 30, 2020, he has a net worth of about Rs.11.5 crore.
4. Ratan Tata
Ratan Naval Tata is an Indian businessman and philanthropist who served as the chairman of Tata Sons. He was chairman of Tata Group from 1990 to 2012, and he continues to manage the company’s charity trusts. He has received two of India’s highest civilian honours, the Padma Vibhushan (2008) and Padma Bhushan (2009). (2000).
He graduated from Cornell University’s College of Architecture in 1975 and Harvard Business School’s Advanced Management Program in 1975.
Ratan Tata, the Tata Group’s chairman emeritus, has invested in more than two dozen companies, including furniture e-tailer Urban Ladder, digital payments app Paytm, ride-hailing company Ola, and its electric vehicle branch Ola Electric Mobility. One thing that has worked in the Tata Group patriarch’s favour regarding investing in startups is his intuition. He offered some advice to young entrepreneurs, investors, and companies.
5. Vijay Shekhar Sharma
Vijay Shekar Sharma, the founder and CEO of Paytm, has invested in over 37 companies and has four exits to date. His experience and resources have aided firms like Unacademy, sourceeasy, InnerChef, The Ken, and Milaap, and he is regarded as a top-level counsellor and investor in the field.
Vijay Shekhar Sharma born in 1978 is an Indian business magnate and billionaire. He is the CEO of Paytm, a financial technology company he founded. Forbes dubbed him India’s youngest billionaire in 2017 with a net worth of $1.3 billion. He was named to Time Magazine’s list of the 100 Most Influential People in the World in 2017. He won Uttar Pradesh’s highest civilian honour, the Yash Bharati award. He was the 62nd richest person in India in 2020, according to Forbes, with a net worth of US$2.35 billion. Vijay Shekar Sharma was named a Universal Acceptance ambassador in India by the ICANN UASG.
6. Sachin Bansal
Sachin Bansal is an Indian businessman born on August 5, 1981. He is most known for co-founding Flipkart, which Walmart bought for $16 billion (or 77 per cent of the company) in 2018.
For nearly 11 years, Bansal was the CEO and chairman of Flipkart. Following the Walmart acquisition, he left Flipkart in 2018. Sachin and Binny Bansal founded Flipkart in 2007, and it was valued at $20.8 billion in 2018.
Bansal declared in May 2018 that he would be focusing on pending personal projects, gaming, and brushing up on his technical abilities after stepping down as executive chairman of Flipkart. Bansal is now the MD of the Navi Group, which provides financial services.
Sachin Bansal has invested in around 14 Indian startups and businesses. SaaS, internet services, analytics, AI, media, and e-commerce are his key investing areas. He is said to be a passionate person who can help you bring your ideas to reality. His major investments include Tracxn, Unacademy, Inshorts, Sigtuple, SpoonJoy, and Ather Energy.
Bansal has also lent his support to other tech companies, including Ola, a ride-hailing company in which he invested $100 million.
7. Kunal Bahl
Kunal Bahl is the CEO and Co-Founder of Snapdeal.com, India’s premier value-focused e-commerce site, which has received funding from Temasek, BlackRock, Mr Ratan Tata, Softbank, and Premji Invest, among some others. Kunal has received a number of honours, including Ernst & Young Entrepreneur of the Year- 2014; Fortune Global 40 under 40- 2014; The Economic Times Entrepreneur of the Year- 2015; The Joseph Wharton Award for Young Leadership- 2018; The Economic Times Comeback Award- 2019.
He is also an enthusiastic angel investor. He has made over 120 investments in technology companies across consumer internet, finance, direct to consumer brands, AI, and deep-tech in India, the United States, and Southeast Asia. Ola Cabs, Urban Company, Razorpay, Shadowfax, and Mamaearth are his ventures. Since 2015, Kunal has been a member of the Board of Governors of ICRIER, a renowned economic think tank situated in New Delhi.
He is the current Chairman of the CII National E-commerce Committee and a member of the Nasscom Executive Committee since 2019. Kunal graduated from UPenn with a bachelor’s degree in engineering and a master’s degree in business administration from The Wharton School. He was a member of the distinguished Management & Technology Program.
Kunal Bahl is enthusiastic about operations and staying up with market changes. He put $275,000 into Wobb and $16.6 million into Geniebook in 2021.
8. Gokul Rajaram
Gokul Rajaram is the founder of Chai Labs and a former product director at Facebook. He is considered a techie who focuses on SaaS, internet services, analytics and artificial intelligence, and media. LivSpace, Edu Fire, Buffer, Loop, Flipora, and Whatfix are just a few of his major investments.
Gokul Rajaram is a product and business helper at DoorDash, a board member at Coinbase and Pinterest, and an investor and advisor at a number of companies. In a statement, Pinterest CEO and co-founder Ben Silbermann stated, “Gokul brings excellent experience and innovation to our Board, and we look forward to his many contributions.” As we strive to provide inspiring experiences to users and advertisers on Pinterest, his extensive track record in retail, digital advertising, and the content will be highly beneficial.
Rajaram is currently a member of DoorDash’s, where he oversees Caviar, the company’s premium food ordering business, which DoorDash purchased for $410 million from Square last year.
9. Rajan Anandan
Rajan Anandan is an Indian businessman who previously served as Google India’s Vice President. In August of 2011, he became the Managing Director of Google in India and Southeast Asia. He was a co-founder of Sri Lanka’s first seed fund. He is the Managing Director of Sequoia Capital India at the moment. Before all of this, he held top positions at Microsoft and Dell, two well-known companies. Rajan was also a McKinsey & Co. partner. He also invests in early-stage firms as an Angel Investor.
Rajan Anandan has invested in a number of businesses, including Buttercups, a Bangalore-based online lingerie company, Druva, Capillary Technologies, Unacademy, TravelKhana, EasyGov., Instamojo, WebEngage, BOV Capital, and others.
Until now, he has invested in and supported about 80 startups. He intends to invest $1.5 million in South Asian startup companies.
10. Anupam Mittal
Shaadi.com was founded in 1997 as Sagaai.com by Anupam Mittal. In 1999, Anupam has invested in Bollywood films and is the producer of the films Flavors and 99 and his commercial endeavours. He is also one of the Sharks, investors at Sony LIV business reality show Shark Tank India.
Anupam is also a successful Angel Investor, a Founding Member and Past Chairman of the Internet & Mobile Association of India (IAMAI), the Founding Co-chair of H2 India and his active job at People Group. Anupam holds a master’s degree in operations and strategic management from Boston College in the United States.
edited and proofread by nikita sharma