{"id":10451,"date":"2022-10-03T15:20:05","date_gmt":"2022-10-03T09:50:05","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=10451"},"modified":"2022-10-03T16:24:23","modified_gmt":"2022-10-03T10:54:23","slug":"how-retail-investors-can-start-angel-investing","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/how-retail-investors-can-start-angel-investing\/","title":{"rendered":"How Retail Investors Can Start Angel Investing?"},"content":{"rendered":"\n<p>For a long time, retail investors have preferred stocks as their investment option. Everyone looked into <a href=\"https:\/\/www.tickertape.in\/blog\/top-cryptocurrencies-to-invest\/\">cryptocurrency<\/a> choices with the rise of Web3, but due to their complexity and lack of institutional backing, investors are once again looking for more reliable investment opportunities.<\/p>\n\n\n\n<p>With the increasing start-up culture in the country, retail investors are now eyeing to diversify their portfolios in start-up investing and be part of the success story of the brand by being Angel Investor.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/how-retail-investors-can-start-angel-investing\/#What-is-angel-investing\" title=\"What is angel investing?\">What is angel investing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/how-retail-investors-can-start-angel-investing\/#How-to-become-an-angel-investor\" title=\"How to become an angel investor?&nbsp;&nbsp;\">How to become an angel investor?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/how-retail-investors-can-start-angel-investing\/#Positives-and-negatives\" title=\"Positives and negatives\">Positives and negatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/how-retail-investors-can-start-angel-investing\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-angel-investing\"><\/span><strong>What is angel investing?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An investor can <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> directly in a small business through angel investing. Typically, it occurs through shared networks where you are familiar with and confident in the founding team.&nbsp;<\/p>\n\n\n\n<p>But there is a limitation to this. Not everyone has the time or resources to network and identify a resource that runs a <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-raise-debt-efficiently-for-your-business\/\">start-up<\/a> and is seeking funding. In addition, not everyone has a sizable chequebook to sign on for such kinds of investments.<\/p>\n\n\n\n<p>Consequently, a way for new platforms has emerged due to the growing interest in start-up funding. There are now investing platforms that enable individual investors to participate in start-ups; one such platform is <a href=\"https:\/\/bit.ly\/3fxUPIg\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Tyke<\/a>.<\/p>\n\n\n\n<p>Some of the most successful angel investors in India are Rajan Anandan, MD of Sequoia Capital, who invested in LBB, Instamojo &amp; PopXo; Anupam Mittal, CEO of Founder Group, seen on Shark Tank, who invests in Tech and healthcare businesses; Sandeep Tandon, Co-founder of FreeCharge, has invested in fintech companies like RazorPay, Inc42, Unacademy and more.<\/p>\n\n\n\n<p>Generally, angel investors are well-informed entrepreneurs who know how to read up about the business and pick the opportunities with a better <a href=\"https:\/\/www.tickertape.in\/blog\/rate-of-return\/\">rate of return<\/a>. Angel investing platforms help retail investors by doing all the background research through a due diligence check.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-become-an-angel-investor\"><\/span><strong>How to become an angel investor?<\/strong><strong>&nbsp;&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To directly answer the question, here are the options.<\/p>\n\n\n\n<ol><li>One of the common routes is to invest in the companies founded by your friends and family.<\/li><li>Making a group of angel investors who can collectively evaluate, review, and invest in start-ups. Such groups are called angel groups.<\/li><\/ol>\n\n\n\n<p>However, choosing these routes requires a significant investment of time in researching startup companies and possessing a high-paying cheque that can be written off. And that&#8217;s not all; you also need to have a wide circle of contacts from which you might get deals.<\/p>\n\n\n\n<p>All this doesn\u2019t sound feasible for investors not in the business and investment domain. Addressing this issue, angel investment platforms were introduced in the market to offer a single platform for investors and start-up owners to pool the funds for the firm.&nbsp;<\/p>\n\n\n\n<p>Before onboarding them, these platforms conduct a background check and due diligence procedures. One of the benefits of angel investing platforms like Tyke is that you don&#8217;t need a lot of money to invest. You can invest as little as a few thousand and get access to the startup&#8217;s quarterly report so you can learn more about its progress.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Positives-and-negatives\"><\/span><strong>Positives and negatives<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>Depending on the type of investor you are, you must specify your <a href=\"https:\/\/www.tickertape.in\/blog\/best-investment-plans-for-3-years-with-high-returns-in-2022\/\">investment plan<\/a>. Suppose you have a lot of money to invest, for instance. In that case, you can consider diversifying your portfolio by funding several businesses to improve your chances of making a good <a href=\"https:\/\/www.tickertape.in\/blog\/return-on-investment\/\">return on investment<\/a>.<\/li><li>You must be familiar with all Indian regulations governing angel investments.<\/li><li>While making angel investments can be very profitable, there is <a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/\">risk<\/a> involved. Angel investing is viewed as risky, especially considering its unproven nature. Investments are more like bets on startup development and future predictions. Furthermore, diversity in a portfolio can help to reduce this risk.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The number of angel investors has increased significantly during the past 4-5 yrs. Consequently, it has become one of the primary funding sources for numerous businesses. The famous TV show Shark Tank also motivated investors to diversify their investment portfolio in the start-up industry. Additionally, expanding the Indian business ecosystem due to more start-ups has led to economic growth. So if you are thinking about becoming an angel investor, there could not be a better time than this!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read what angel investing is, how to become an angel investor and the pros and cons of angel investing in India. <\/p>\n","protected":false},"author":105,"featured_media":10463,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1738],"tags":[],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/10\/03-Oct-22-How-Retail-Investors-Can-Start-Angel-Investing-03.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10451"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/105"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=10451"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10451\/revisions"}],"predecessor-version":[{"id":10458,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/10451\/revisions\/10458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/10463"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=10451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=10451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=10451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}