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New Startup Owner: How to Get Angel Investors on Board?

Harsh Bharwani | Answer |Ask -Follow

Entrepreneurship Expert - Answered on Sep 26, 2024

Harsh Bharwani is a fourth generation entrepreneur.
As CEO and managing director, he leads the international business and employability initiatives at the computer networking institute, Jetking Infotrain Limited.
After graduating from Delhi University, Bharwani joined the family business in 2010 and set up operations in the US and Vietnam.
He has trained over three lakh students in employability, confidence and key life skills.... more

Asked by Anonymous - Jun 22, 2024Hindi

If we plan to enter into a startup, how can we get incestment from angel investors. How to approach them, what are the possible pros and cons.

Ans: Starting your own business is inspiring, and finding the right investor is crucial. However, before considering angel investors to help you launch your startup. Start with clearly defining your business idea. Preparation begins with how precisely you define your business idea: your product or service must respond to an actual need in the market and solve a major problem for people. Validate the idea through market research, customer feedback, and even the launch of a small prototype or MVP (Minimum Viable Product).
When you have a good idea for a product, focus on assembling an excellent team. In all this, the investors are actually investing into the people behind the idea; so invest in talented people who are dedicated to what you want. Assemble talented, dedicated people around you who share your vision and complement your skill set. A balanced team demonstrates potential investors that you are capable of executing your business plan.
Then, you must have a well-defined business model- explaining how your startup will monetize. This includes knowing your cost structure, pricing strategy, and how you're going to scale up the business over time. Here, it is important to have in-depth knowledge of the target market, who your competitors are, and what differentiates you from your competitors.
Build a strong network by going to industry events, joining incubators, and getting connected to fellow entrepreneurs for support and investment. When meeting with investors, ensure you have a well-crafted pitch deck with clarity on the aspect of vision that remains embedded in the problem your startup addresses market opportunities, specifications of your product, and financial projections.

Pay attention to your legal structure: register your company and protect your intellectual property early; this not only enhances your credibility to the investors but also safeguards your business as it grows. Once you are ready with your plans, then you need to search for angel investors.

Finding an investor can be compared as the progress of a business. You need to prepare and know your plan of actions before seeing them. Networking will help and also use AngelList to connect with interested investors. Angel investors can offer excellent mentorship, industry connections, and capital support. However, you have to give up some control or equity in your company, so make sure you feel ok with this before you move forward with them. Building a start-up calls for resilience, therefore be prepared to face challenges as persistence will eventually overcome obstacles on your entrepreneurial journey.