Today, the term ‘Startup’ is familiar to all of us. In the past few decades, startups have made every activity easy. There is an app for almost everything. You need groceries, clothes, in-home services, everything is just one click away.
A startup takes birth from a mere idea that comes out of passionate minds. For starters, it takes an idea, a team, and proper planning to begin with.
Along with all these, the most important thing in any startup is an investment. Sometimes, a small team can't put in their savings and make it work. They need investment from outside sources as well.
Ordinary people can make an investment in a startup too as now, there are various platforms available where you can invest. In this way, you get a piece of the company and a share in profits in exchange for your investment.
What is a Startup?
In simple words, a startup is a company that is in the early stage of business. It is founded by one or more entrepreneurs. It is found that when an entrepreneur sees the demand for a product or service in the market and decides to produce or develop it.
A startup comes with a high risk. There is a big possibility of failure on the one hand. On another, it can flourish well and turn out to be lucrative.
It offers a unique and challenging space for the whole team. The best part is that a startup is full of new ideas and innovations. This makes it a perfect learning space for new employees and interns.
What is Startup Investing?
Startup investing means investing in a company in its initial stage. You get equity, a part in ownership, and a share in future profits in exchange for your investment.
Investing in a startup at an early stage can be both profitable and loss-making. If the startup turns out to be a failure, then you lose your investment. If it flourishes, you will flourish in profit too.
For the most part, startups try to raise investments at an early stage. Investments can also be raised later when the startup is at a growing stage.
Startup investing can be risky. But nowadays, many people seem interested to take this risk. Considering the positive side, this risk can be of great worth.
Why should you Invest in Startups?
Some of the reasons one should invest in startups are:
- Startup investing offers great growth potential. Indeed, it is risky but it can also be rewarding.
- Startup investing is a good idea because it gives you a sense of belief in a new idea.
- It helps you to contribute to an appealing idea that you want to see in the world.
- It helps to develop stronger personal connections. When you have a share in the startup, you feel more connected to it.
- One of the best reasons is that it gives a sense of fulfilment. Seeing an idea come to life with you being a part of it. It is a feeling so many people like to feel.
Startup Investing Platforms in India
Today is the digital age. Digitalization has made fundraising or investing easier with the help of online platforms. It is now possible for ordinary people to invest in startups through crowdfunding sites. There are certain terms and conditions like fixed least amount, net worth, and income. Every platform has its own rules.
Here are some startup investing platforms in India:
Inflection Point Ventures
Founded in 2018, Inflection Point Ventures (IPV) is an early-stage angel investing platform.
The platform has grown from 100 investors to over 6,000 members today comprising CXOs, HNIs and top professionals. With IPV, one can start investing in startups with as low as Rs. 2.5L per startup. According to the recent Nasscom Indian Tech Startups Ecosystem report, IPV has emerged as one of the most active angel platforms in India.
IPV has investors across the globe in over 45 countries. Their robust proprietary 150+ due diligence parameters ensure deep evaluation and higher chances of success in invested startups. The platform has invested over Rs. 350 crores in 110+ startups. Some of the prominent startups they have invested in are BharatPe, Toch, BluSmart, Otipy, Phable and Uable.
LetsVenture is one of the leading startup investing platforms. The first beta of LetsVenture was launched in the year 2013. Shanti Mohan, entrepreneur and angel investor is the founder and CEO of LetsVenture.
It is a platform that connects startups with authorized investors. It makes the process of fundraising super easy and efficient for both investors and startups.
LetsVenture has helped 300 plus startups raise $200 Million in their initial stage. These funds are raised from 28 active syndicates, 6500 plus authorized investors, micro funds, and family offices.
AngelList is another great platform that connects startups with investors. It was founded in the year 2010, by Naval Ravikant and Babak Nivi.
This idea began when the two founders made a list of 25 investors with whom they would share lucrative startups to invest in. They named this list ‘AngelList’.
AngelList has funded over 400+ startups with more than $2 Billion worth of investments. One has to qualify as an Eligible Angel Investor to invest here.
It is a crowdfunding platform that gives access to investors to invest in startups. SeedInvest is a reliable platform as it has a strict criterion for company selection. However, it is always good to have detailed research before investing.
Angel Investment Network
Angel Investment Network is one of the leading startup investing platforms. It offers a variety of locations, industries, and investment sizes. This variety makes it a great marketplace for both startups and investors.
The best part is that you can register for free as an investor. Investors can directly message and chat with their desired entrepreneurs. This develops trust between both parties.
Startup investing is a super-risky business. It’s kind of like a gamble. No matter how detailed research one has conducted. We can never predict the exact success or failure of a startup.
One should not indulge themselves in it only for the sake of a share. One must be calculative and be prepared if their investment goes in vain.
Nowadays, people can invest in private equity funds that specialize in venture capital funding. This allows them to make an indirect investment in a startup.
In the end, startup investing often works on extremities. Either it makes huge profits or drains you of your entire investment.
Which startup is best to invest in India?
Some of the best startups to invest in India in 2022 are:
How can I become a startup investor in India?
Join a group of angel investors, Get involved with incubators and accelerators or you can also sign up on one of the startup investing platforms.
Which city is best for startups in India?
Bangalore is known as the Silicon Valley of India and is known as the best city for Startups.
Which are the top Startup investing Platforms in India?
Top Startup investment Platforms in India:
- Inflection Point Ventures
- AngelList India
- Angel Investment Network