First question arises in our mind before stepping into startup ecosystem is what
is startup and why to invest in it?
Startup is a young company founded by the entrepreneur(s) who came up with a unique product or service and present it to the market. They are the ones who are transforming ideas into a reality and solving the problems in the industry! If we can say the same in the legal terms, a startup can be a company or a limited liability partnership engaged in a business which involves innovation, development, deployment or commercialization of new products, processes or services driven by the technology or intellectual property.
Startups are known to be the future of the economy they not only brings innovation and development but boosting the employment opportunities in a country. Thus, if startups have proper funds, capital requirements, management, they can achieve more than expected!
Initially every company is bootstrapped means investment is done by the founder(s) itself but after some time they need their startup to be funded by the angel or bridge investors to help them in scaling their operations & taking it to the new heights.Investors not only put their monies but bring-in their life time experiences when they are funding the startup thus finding the right investor is of utmost importance.
We talked about why startups need funding, but why investors would invest? What’s their benefit? Let’s highlight key points in brief-
Investing in the early stages of a start-up helps the investors to get a better
leverage in controlling the system and business model of the same. By investing
one can gain multiple returns on their investment along with the ownership
percentage (equity) in the particular start-up.
One can get tax benefits too in investing in a startup such as exemptions from
We are sometimes reluctant to invest in startups but go for highly risky stocks and
other sources to generate revenue having a wrong perception that is – to invest in
startup huge chunk of money is required. But we at Startup Angels Network helping
the corporates, professionals in investing smaller amounts in a pool and still they can make meaningful contribution (equity ownership) in the future’s unicorns.
We at Startup Angles Network provide you with the platform where you meet the startups and pooling of funds help you to invest along with the best and experienced investors community.