In the recent past, it has been witnessed that Investments in the Start-ups have grown exponentially. More and more people especially young and career oriented people are looking at this niche market as their way to earn success. They have zeal to do wonders and some great ideas.
Those who are fascinated about the start-ups ecosystem and do not know from where to begin, here’s the key areas highlighted for you to start investing in startups and be a part of niche industry!
Before moving towards the next, let us see why start-ups need external funding?
Huge amount is spent on hiring the top notch professionals, building the team in order to facilitate the idea in the needed direction. These professionals not only help in bringing the solution to the problem but also help in scaling the growth, shifting the technical aspect with the right marketing strategies, they also help in acquiring the market and its share in the coming years. Investors as whole not only adds money to a particular start-up but their well-earned experience as well.
No doubt funding increases the visibleness of the startup and it attracts more attention from the market!
Major focus areas to look at before considering a start-up is addressable market, If the market has existing solutions, then there is a need to look at how the particular start-up is different with regard to their peers, product and deliveries whereas if the start-up is focusing into the new emerging market, the centre of attraction would lie on the size of the market and how it grows.
The founder’s potential in having the right team that posseses the right skills in shaping the product, managing its operations and most importantly the marketing areas. Another factor which also plays a big role is interoperability between the founding team.
The start-ups need to prove their worth in order to have more investors on board and they need to show the real traction figures in support of their revenue model.
The right way to start making investment is to invest smaller fractions of your total investment in different start-ups rather than investing the whole amount in one.
What we do here is connecting the start-ups with the relevant investors and thus makes it easier for the investors to penetrate in the market without any hassle, by conducting proper due diligence before giving our recommendations and moreover as the funding is pooled by many investors at the same time, you can make a meaningful contribution towards the start-up with much lesser amount.
Covid crisis undoubtedly leveraged the opportunity for tech based statups in the world in adoption of digital revolution. According to the NASSCOM startup pulse survey, tech start-ups in India which were drastically hit by the pandemic are on a gradual verge of recovery with the improved cashflows leading to the rapid diversification towards AI and IOT based startups as a “New Normal”, opening the doors for the investors. Along with edtech, fintech and healthtech startups have witnessed a increase in their revenues.
There are many more factors that are considered before investing your money into a business, Tell us more about your experiences, queries and suggestions in the comment section and stay connected for further insights to gain more ideas towards becoming an angel investor!