People Tech | Crowdfunding | Digital Disruption | Innovation in HR | Angel Investor

One of the biggest challenges which any startup encounters is the aspect to raise capital. Thankfully, nowadays entrepreneurs have multiple options in hand to acquire the finance they need. Pursuing angel investors has its own benefits. Simultaneously Crowdfunding has come to the succor of fledgling companies to roll out. Both have distinct pros and cons. So before diving in, it’s imperative for startups to know how Angel Investing or Crowdfunding options can influence their long-term business perspectives. Angel Investing Pros ·          Unlike small business loans where there’s a legal obligation of repayment, Angel Investing doesn’t necessitate the money to be recompensed. Rather it banks on the company’s value augmentation over time. ·          Besides providing the financial buttress which a company needs to keep its venture up and running, angel investors frequently dole out thei...

Angel investment occupies a large percentage of the global early stage investment market and has become a primary choice for most entrepreneurs. The UK is no exception. Besides the usual gains, investors in the UK enjoy advantages like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) which can offer qualifying investors tax relief of 30-50 %. It is estimated that £ 1.5 bn is invested per annum by angels. This is more than 3 times the venture capital (VC) invested in early stage UK businesses annually. A recent study conducted by the British Business Bank and the UK Business Angels Association reveals some interesting insights. The typical business angel in the UK is male, white and most likely to be based in London. They normally have prior experience in investment of about 8 years with some part of it being professional. Their median initial investment is about £25,000. They are generally serial investors making follow up investments t...

Angel investing fills the gap between the necessary seed capital at the birth stage of a startup and the stage where the startup needs capital to grow and accelerate. At this latter stage, depending on the power of the business idea and the startup’s performance, the early stage growth or risk capital required may be less than £ 1 – 2 million or more than that figure. When the capital required is more than £ 1 – 2 million we have traditional Angel Funds stepping in who conduct due diligence before investing the money. But if the capital required is lesser than the requisite figure then a single Angel investor or a group invests in the startup. This investment may be in the form of upfront equity or convertible debt which is later converted into equity. Few Angel investors form angel groups or angel networks that then start taking collective investment decisions. Few others invest online through equity Crowdfunding . Professional venture capitalists generally raise the capital ...