A Beginner's Guide to Angel Investing

Introduction

The growing startup market is drawing immense attention from Angel investors. These are wealthy private investors with the capacity to finance small business ventures in exchange for high equity. 

What if we told you that you too can become an angel investor with Grip? 

If you’re curious, read on to know more. 

To begin with, what is Angel Investing?

Angel investing is a type of private equity investment in which individuals or groups of investors invest their own money in early stage or startup companies. The goal of angel investing is to help these companies grow and become successful. Investors earn a return on investment (ROI) down the line. 

Startups don’t find angel investing easily in the first place, and angel investors are not always ready to back a startup that is still in its early stages. So, Grip has come up with a great way to support this ecosystem. It has made Angel investing in startups possible for everyone. 

Who can be an Angel Investor?

A high-net-worth individual (HNI) who meets the standards of being an accredited investor can become an angel investor in India and benefit from investing early. You must also qualify according to the following criteria to be eligible as an angel investor:

Experience: You must have experience in early-stage investments, may have been a serial entrepreneur or have worked as a senior management professional for a minimum of 10 years.

Net worth: An individual investor having net tangible assets of at least ?2 crore, excluding the value of their principal residence or a body corporate with a net worth of at least ?10 crore.  

Risk-taking capability: Angel investors understand investing in start-ups is a high-risk and high-reward approach. They are willing to bet on the potential for success in the business while accepting the possibility of losing everything. 

How to Start Angel Investing on Grip?

Till now, investments in startups have been available to large venture capitalists and private equity players. These investments were available for a high ticket size that easily ran into a few crores. Moreover, there was no assurance on the success of these companies as there was no way to perform due diligence and background check on them. 

So, what has Grip done? It has created a new alternative investment option called startup equity.  This lets small investors put their money into startups. By reducing the ticket size for individual investors, Grip has opened high growth VC-backed startup equity investment opportunities to non-institutional investors. 

• Now, you are not investing crores and can start with a minimum investment of ? 2 lakhs.
• Each investment opportunity is led by a venture capital firm
• Grip conducts due diligence, finalises the valuation and is responsible for the ongoing corporate governance of the startup
• These include companies that have previously raised leasing or inventory financing from Grip 
• Thus, all these companies have a verified track record in terms of payment and adherence to Grip's credit requirement.
• Investors looking for regulatory comfort can rest assured as the investments are enabled through a SEBI registered Alternative Investment Fund.
• Investors need to fulfil certain KYC requirements
• A minimum of  ? 2 crore net worth and a commitment to invest ? 25 lakhs over 5 years is required, which can be easily accomplished.
• Grip maintains complete transparency in its operations

Conclusion

The Indian startup ecosystem has grown by leaps and bounds in recent times. Individuals are coming up with ideas that can simplify the lives of people.These startups require an opportunity to grow and you as an investor can be a proud equity holder in a startup. Not only are the profits highly rewarding, scaling your investment graph is like a dream come true especially if the startup becomes a unicorn. So, if you are looking to put your money towards the chance of exponential growth, consider doing so with Grip’s Investment plans. 

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Happy Investing!

Disclaimer - Investments in debt securities are subject to risks. Read all the offer-related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading. This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip Invest”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip Invest or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip Invest does not guarantee or assure any return on investments and accepts no liability for the consequences of any actions taken based on the information provided. For more details, please visit https://www.gripinvest.in/. 
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