Angel Funding is the Messiah for Startups

Startups do face teething problems, particularly in respect to gathering of capital or funds. This is the most integral part to scale through problems and survive in a competitive landscape. There are numerous ways to raise funds for startup a – namely Venture Capital Investing, Angel Funding and Crowdfunding. 

Large companies still can seek the help of venture capitalists but what about those having a small/ medium size startup. For small business owners funding from an Angel Investor come as a big relief. 

When You Have an Idea but Do Not Have the Money 

In the nascent period of business growth, the financial backing of numerous angel investors helps a startup to gather momentum and proceed towards its utmost business potential. It is great to have angel investors because they have been experienced entrepreneurs in the past and know what kind of hassles come up in the way of starting a new business. 

Their mentorship comes handy to sail through challenges like Digital Disruption, which is marked by changed consumer preferences. They guide the business in their growth stages by helping them figure out what more could the existing consumers want out of the brand. Digital disruptions might sound confusing but urges businesses to adapt to the emerging consumer trends and bring in new customers on the business portfolio. 

For major investments investors even assume a directorial or advisory role on the startup.  What is really appreciable is their will to put trust in finances and future prospects of a new venture in the market. 

The Top Benefits of Angel Investing

Angel investing is all about funding a new business in exchange of convertible debt or ownership equity. The investors invest funds (their own) online individually or organize themselves as angel group or angel networks.

·        Angel investors are long term investors

·        Angel investors can not only raise valuable money but can fetch venture capital investing too in due  course of time

·        Fills in the gap in seed funding (money acquired from friends and family members) and robust financing (as in the case of VC or Venture Capital)

·        No set amount decided for investment. Angel investment can vary from few thousand pounds to couple of million pounds. 

Venture Capital Investing & Crowd funding 

Venture capitalists fail to help small- startups primarily because it becomes difficult to gauge the profitability of businesses which need small investments under £ 1–2 million. They are on the lookout for a strong product/ service that has slim chance to sink in the market (the only reason behind shying away from startup ventures lacking competitive advantage and a strong, focused management team). 

Crowdfunding is a direct approach for people, organizations or businesses to seek money. In a way it is a great way to judge the market value of a product or service by pre-selling them (by posting business ideas on crowd funding platforms/sites). Investment based, loan-based, donation-based and reward-based are the several means of crowdfunding 

London based advisory firm, HR Tech Partnership is an early stage angel funding firm investing in startups that have a strong AI based product. The HR Tech Partnership has a group of very senior level HR directors with experience and expertise to fund and support innovation in HR tech for digital People Tech startups.