As an entrepreneur, you’ve probably heard the phrase “angel investing” a lot during your pre-seed capital period. While you may have a concept of what angel investing is, it is easy to get confused with the many financing options available in the market. We will go over all you need to know about the top angel investors in India, angel investment and how it works in this blog article.

What Exactly is Angel Investing?

Angel investment is a method of financing in which a wealthy individual investor or group of investors finances a startup in its early stages in return for stock in the company. These high-net-worth individuals frequently refer to themselves as angel investors or business angels. Unlike venture capitalists, who utilize investment funds to finance firms, top angel investors in India fund early-stage enterprises with their own money.

Most angel investors are accomplished entrepreneurs with knowledge of the field in which they are investing. In addition to funding, they should contribute mentoring, networking, relationships, and business expertise. They also assist entrepreneurs in becoming familiar with other investors in preparation for future investment rounds.

6 Characteristics to become top angel investors in India

An angel investor in India must answer the following questions before sponsoring a startup:

1. Is the business concept scaleable?

The first and most crucial question for an angel investor or angel investment platform in India is whether the company concept sold to them is lucrative and scalable. It is determined by various criteria, including the breadth of the product or service underpinning the company concept, the target market, and the investment size.

2. Are the founders and their teams enthusiastic?

The founder of a company is unquestionably the captain of a ship whose exact trajectory no one can foresee. As a member of the country’s angel investor network, you must hunt for startup ideas led by individuals who are enthusiastic, devoted, and invested in the idea’s success.

3. Do the entrepreneur and the startup team understand their industry?

Startups are similar to newborns because they need nurturing and the necessary space and resources to thrive. As a result, the founder and their team must understand the scope, KPIs, potential, risk, and every essential facet of the firm. If you want to invest in startup funds in India, seek individuals who understand the current state of their concept and organization and the potential future course it may follow.

4. Is the risk-reward equation a viable option?

Every business concept carries inherent risk, and startups are no exception. As a member of India’s startup ecosystem, you must seek images and firms with favorable risk-reward ratios. Investing in an idea with a high risk but a low projected return is not a wise business decision.

5. Is the investment expected to grow?

All investments in startups make intending to grow the concept, the business, and the company’s value. As a startup investor, you must guarantee that the project in which you are investing capital will provide returns within a particular time frame.

6. Do they provide financial assistance?

Finally, top angel investors in India put their money where their mouth is and write hefty checks.

The angel investors’ backing might be the difference between a company’s success and failure. Be picky about the angels you work with on your path. The most powerful angels are dedicated, compassionate, encouraging, and involved. During challenging times, they support the entrepreneur and fight to overcome difficulties. They keep open contact with the entrepreneur and make helpful referrals from their network on their initiative.

Top 10 angel investors in India

Here is a list of top investors in India for startups that have served as guiding angels for a variety of enterprises in 2022:

1. Sanjay Mehta

Sanjay Mehta belongs to the Indian Angel Network, Venture Nursery, and Mumbai top angel investors in India. He has invested in over 100 firms, including Wow! Momos, Box8, Loginext, and OYO, where he got more than 280 times ROI when he departed OYO. Sanjay Mehta is on the top of Indian angel investors list.

2. Anand Chandrasekaran

Former Snapdeal product head and Facebook director, this Stanford graduate has invested in over 50 businesses, 20 of which were in 2016. Khatabook, EkAnek, Deal share.in, Oye Rickshaw, and InVideo are among his significant ventures. His primary investment areas include SaaS, consumer internet, B2C, and P2P marketplaces.

3. Sandeep Tandon

Sandeep Tandon co-founded Accelyst Solutions Pvt. Ltd in 2010 and has served as its Chief Business Officer since 2015. In 2017, he made over 23 investments and had three exits. The Harvard alumnus is also a FreeCharge co-founder. His primary investing areas are internet services, fintech, healthcare, and education.

4. Ratan Tata

Ratan Tata, Chairman of Tata Industries and an industrial titan, has made over 47 investments, many of which he has led. To date, he has had six exits from Xiaomi, Urban Ladder, One97, and Ampere Vehicles, with his primary domains being consumer services, finance, mobility, and cleantech.

5. Vijay Shekar Sharma

Vijay Shekar Sharma, the founder and CEO of Paytm, has invested in over 37 startups and has four exits. He is regarded as a top-tier counselor and investor in the business, having aided Unacademy, source easy, InnerChef, The Ken, and Milaap with his skills and resources.

6. Sachin Bansal

Sachin Bansal, the co-founder of Flipkart, has invested in over 14 startups and businesses in India. His primary investment areas include SaaS, internet services, analytics, artificial intelligence, media, and e-commerce. He regards you as an incredibly enthusiastic individual who can assist you in making your thoughts a reality.

7. Kunal Bahl

He is the co-founder and CEO of Jasper. Kunal Bahl enjoys operations and keeping an eye on market developments. He has invested in over 60 firms and has five exits to his credit. Ola, Bira 91, Snapdeal, UrbanClap, RazorPay, and Rapido are among his significant investments.

8. Gokul Rajaram

Gokul Rajaram is the founder of Chai Labs and a former product director at Facebook. He is known as technically savvy, with a primary emphasis on SaaS, internet services, analytics & AI, and media. LivSpace, Edu Fire, Buffer, Loop, Flipora, and Whatfix are among his significant investments.

9. Rajan Anandan

Rajan Anandan was Google’s Vice President of India and Southeast Asia for eight years and is an ardent investor. He has invested in over 60 businesses and exited 12 of them. His primary concentration is on angel investment in early-stage companies. He is the creator of Sri Lanka’s first seed fund, Blue Ocean Ventures.

10. Anupam Mittal

Anupam Mittal is the founder and CEO of People Group, and one of his successful companies is shaadi.com. He has invested in over 50 companies, including Ola, Drivezym Kar Capital, HackerEarth, and Truebill. He looks for market potential, sustainability, and scalability. One of his significant investments is a $5.2 million investment in GoKwik in 2021. He is one of the top angel investors in India 2022.

Bottom Line

Angel investors are often rich people who offer financing to tiny firms in return for a stake in the company. In addition to providing much-needed capital, top angel investors in India may provide vital mentoring and advice to businesses.

While angel investors may be an essential source of finance for early-stage enterprises, they also have a few drawbacks. For example, giving up stock in your firm might dilute your ownership interest and offer investors a role in how the organization is handled. Furthermore, angel investors may demand a speedy return on their investment, putting pressure on the firm to develop too quickly or sell before it is ready.