Any startup in their initial stage are in vulnerable position and hence they need sufficient mentoring to survive and reach scale heights.
Who are Angel Investors?
As the term suggests, Angel Investors, are individuals who invest their money, time and trust in startups with an intention to guide and help them get off the ground. Even if their investment is low, the right angel investors bring in expertise and can advise your startup in technical aspects, business development and many more. This smart money is too much valuable than dumb money, which will just be $s.
Simple ways which explain Angel Investors could add value to a startup.
Any startup in their initial stage are in vulnerable position and hence they need sufficient mentoring to survive and reach scale heights. Angel Investors provide, much-needed handholding support. Also, they provide valuable insights and invest time and resources to support startups.
Experienced doers or being seasoned entrepreneurs (Includes: founders or core members of startups) themselves, angel investors can bring in their valuable experiences about the obstacles and hardships they had to overcome in their own business or in their association with other startups. This will help you to avoid similar situations or be better prepared to handle them.
If your Angel is a seasoned practitioner in your start-up’s domain or industry, they will provide the necessary expertise in finding solutions to tissues and other technicalities. Your startup may have come up with a product/service as a solution to existing problems or needs.
A domain expert may mentor you better on how to tailor it to be a success and have better market penetration, and in decision making.
For example, if you are a non-HR team with an HR solution, bringing on board a senior HR professional would provide you valuable industry insights.
Business and Market Expertise
Angel Investors can use their business and market expertise to support your startup in making important decisions. They can support you in a better way to make your business cost-efficient and profitable, also it improves the efficiency of operations. They can help you achieve deeper market penetration, greater customer satisfaction as well as plan efficient marketing campaigns.
Maybe your team not have the complete set of skills required such as technological, marketing, and business, etc. An Angel with the necessary skills and experience can help you fill in that skill gap.
For example, if you are a team of special educators and educationists designing a technology-based teaching aid for young special students, bringing in an angel investor who is a software engineer or a leader in the technology sector will be beneficial and so will bringing in an angel investor who is successful IT entrepreneur who understands costing and marketing of such products.
Contacts and Networks
Being an experienced executor, Angel Investors will have several contacts and strong networks that they can introduce your startup to, and help you build strategic partnerships.
They can introduce you to venture capitalists, credit institutions, and other investors, to help you raise more capital for growth and expansion.
They could precisely or overtly promote your startup and help gain the trust of various stakeholders. Moreover, they can introduce you to potential customers or aid you in networking with them. Angels can also help you to get some presence in the press and media.
Angel Investors, being outsiders, provide a third-party evaluation of your startup. They often ask you tough questions and critically examine your plans, works, and execution. This is really important for you to streamline your work.
Visibility and Credibility
Being associated with established Angel Investors and Industry stalwarts itself gives your startup credibility and visibility.
This may be advantageous for you to obtain additional funding in the future, garner media attention and bring established consultants (Marketing/Domain/Sale, etc) on board.
In the end, bringing in the right kind of Angel Investors will go on a long way in determining your startups level of success and reach. Therefore, it is essential to look at the value your potential angel investors can add to your startup rather than the limitless number of cheques they can write or the $s they can contribute.
Now you got to know how “Angel Investors” are so valuable for you as well as your startup.
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