Angel investors provide financing to early-stage businesses in return for equity. They become part owners and are entitled to a share of the company's profits. While investing in early start-ups can be financially rewarding, many investors turn to angels for the joy of watching nebulous ideas turn into great businesses. That is why many angel investors often invest more than just their money in start-ups.
SEBI regulates angel funds as part of Category 1 alternative investment funds (AIFs).
Angel funds are dedicated to identifying young businesses that can become the leaders of tomorrow. These funds offer investors like you a chance to invest in companies in their formative years and benefit from them once the business does well.
JM Financial Services Limited offers investors a wide selection of Angel Investment Funds from some of the leading fund managers in India and globally. Our extensive network of relationships, personalised service, and robust technology infrastructure ensure that your investment experience is seamless and hassle-free.
FACTBOXStart-up investments by super angels and angel networks rose 24% to hit a new record of 341 in 2020 from 275 in 2019. Source: Indian Private Equity and Venture Capital Association (IVCA).
Individual investors can invest in angel funds if they have net tangible assets in excess of Rs 2 crore (not including the value of their residence).
Angel funds invest in early-stage start-ups in exchange for an equity stake in the company. They typically exit once the start-up achieves a level of maturity.
The minimum investment in an angel fund is Rs 25 lakh. It’s a Category 1 Alternate investment fund.
Angel investors typically take equity stake in a company for their investment. When the start-up achieves some maturity, they exit by diluting their equity stake. Typically, they would sell to a venture capitalist or private equity firm.
Angel investors have the opportunity to invest in early-stage startups. The valuations of early-stage startups are low. As startups mature, their valuations increase, and angel funds stand to make a profitable exit. However, early-stage startups also are highly risk investments.
