Angel investment is the up and coming thing in the financial now, even though it has been in existence in the business world for over two decades.
This change has been propelled by the success of Facebook, the popular social networking website that Mark Zuckerberg incepted when he was Starting Small Business in his dorm room at Harvard.
This site was awarded an angel investment of half a million dollars by Peter Theil, one of the principals at PayPal, another successful web firm.
In 2010, Facebook had swollen Theil's kitty by US$ 1.
7 Billion.
Turned out to be a great investment for the business investors of this US$ 41 Billion website, didn't it? Even though Peter Thiel's instance was an exception rather than the rule, Angel Investors and associated networks are booming across India right now.
This is due to the high rate of return on investment involved in this line of work; the investors get at least 10 times the amount they invested in the venture, while the rate goes up to 20 or 30 times in foreign markets.
These figures seem staggering but are real, as anyone in the finance sector would know the benefits of writing cheques to entrepreneurs who are Starting Small Business and need angel investments.
This investors rake in the profits for a given period of time, minimum 3 years and maximum 7, even though the period depends largely upon the requirements of the entrepreneurs and the purse strings of the sponsor.
In India, angel Business Investors are fairly new, but the phenomenon is catching up rapidly.
The best thing about such an investment is that it is mutually beneficial, since the financial backer gets returns in large sums and the budding businessmen get funds, expertise and contacts from them.
But, all is not as rosy as it seems, since most of the times startups do not reach the heights Facebook has scaled.
It is a norm for people Starting Small Business to fail within the first year itself, even though those that pass the test of time do not bring in profits in the first year either.
Seeing the risks of the business failing, it is logical for Angel Investors to agree to grant funds to only those individuals who have sound business plans.
Typically, a business angel looks for people looking to set up a firm in a high barrier business zone.
This provides him with the security that the finances he supplies to the entrepreneur would not be lost.
Upon zeroing in upon a well thought out business plan, angel Business Investors in India have no qualms in granting the individuals with sums in tune of US$ 1 Million.
The best thing about such investment is that the financial sponsors do not require someone who has past experience, since a sound business plan, good managerial skills and the ability to withstand the test of time are the only pre-requisites.
So, someone who possesses a remarkable idea can be a college guy or someone with little industry experience or even a person who has had past experiences in failed business ventures!
This change has been propelled by the success of Facebook, the popular social networking website that Mark Zuckerberg incepted when he was Starting Small Business in his dorm room at Harvard.
This site was awarded an angel investment of half a million dollars by Peter Theil, one of the principals at PayPal, another successful web firm.
In 2010, Facebook had swollen Theil's kitty by US$ 1.
7 Billion.
Turned out to be a great investment for the business investors of this US$ 41 Billion website, didn't it? Even though Peter Thiel's instance was an exception rather than the rule, Angel Investors and associated networks are booming across India right now.
This is due to the high rate of return on investment involved in this line of work; the investors get at least 10 times the amount they invested in the venture, while the rate goes up to 20 or 30 times in foreign markets.
These figures seem staggering but are real, as anyone in the finance sector would know the benefits of writing cheques to entrepreneurs who are Starting Small Business and need angel investments.
This investors rake in the profits for a given period of time, minimum 3 years and maximum 7, even though the period depends largely upon the requirements of the entrepreneurs and the purse strings of the sponsor.
In India, angel Business Investors are fairly new, but the phenomenon is catching up rapidly.
The best thing about such an investment is that it is mutually beneficial, since the financial backer gets returns in large sums and the budding businessmen get funds, expertise and contacts from them.
But, all is not as rosy as it seems, since most of the times startups do not reach the heights Facebook has scaled.
It is a norm for people Starting Small Business to fail within the first year itself, even though those that pass the test of time do not bring in profits in the first year either.
Seeing the risks of the business failing, it is logical for Angel Investors to agree to grant funds to only those individuals who have sound business plans.
Typically, a business angel looks for people looking to set up a firm in a high barrier business zone.
This provides him with the security that the finances he supplies to the entrepreneur would not be lost.
Upon zeroing in upon a well thought out business plan, angel Business Investors in India have no qualms in granting the individuals with sums in tune of US$ 1 Million.
The best thing about such investment is that the financial sponsors do not require someone who has past experience, since a sound business plan, good managerial skills and the ability to withstand the test of time are the only pre-requisites.
So, someone who possesses a remarkable idea can be a college guy or someone with little industry experience or even a person who has had past experiences in failed business ventures!
Source...