To provide a precise definition of a startup can be challenging; it is a company that’s in the initial stages of business that is trying to solve a problem and the success is uncertain. Until the business gets off the ground, a startup is often financed by its founders and may attempt to attract outside investment. The many funding sources for startups include family and friends, venture capitalists, angel list crowd funding, and loans.

In the past, if one wanted to invest in a startup, they needed both wealth and connections. Fortunately, the situation has changed and now anyone can easily become an angel investors for startups.

startup investing

A Worthwhile Investment

The new era of business is characterized by start-ups. And today, the market offers various startup investment opportunities. They are young companies created by entrepreneurs with the goal of creating a new product or service and bringing it to market. Investing in these firms is difficult, and it’s safe to say that if you do it alone and a beginner in this field; you’re playing a high-risk, high-reward game.

Startup investment opportunities can be fulfilling beyond the potential return on investment. In addition to taking a risk on the company’s future, one has the opportunity to directly support the startup and accompany the founders on their exciting journey.

Insight into becoming an Angel investor

Venture capital is the practice of investing in startups with a group of individuals. Investing with a group of people allows a newbie instant leverage because he or she may benefit from the inputs of industry experience. Angel Investors are another name for these investors.

A lot of factors come into play before investing in these companies. A potential investor must understand the existing economy and what may be expected in the future; the firms in which they will invest; and the market influence that the company can have.

Investing in a firm entitles the investor to a share of the company’s ownership. That business is a valuable asset. If the company achieves new heights and its value increases, the investors profit when they sell their interest increases as well!

Why should one Invest in Startups

As tricky as it is, investing in a startup comes with quite a few benefits as well. Here are a few of the best advantages

  • Investing in a startup and watching it grow to become a successful venture can be a very exhilarating experience in addition to being very financially rewarding. When one invests at the proper time, a modest sum of money might yield big rewards.
  • When someone invests in a company, they are directly contributing to the creation of new jobs for people, which benefits the economy.
  • Investing in a startup can be highly exciting and a stimulating experience. It depends on the investor if they want to be an active investor and give their inputs and suggestions for the growth of the company, or take a back seat and be a passive investor.
  • Today’s startups are coming up with very different and innovative ideas to create an impact on the world. Being a part of and investing in something this big can be very fulfilling.
  • It is a great way to diversify your portfolio as well.
  • Investors with a small ticket size and comparatively lesser capital can also now invest in crowdfunding.
  • You do not require to be super rich to invest in a startup anymore, Via OwnersTown you can start with a capital as low as Rs. 2,50,000.

Do you feel like testing your risk appetite? Then this is a good time to step into the world of Angel Investing. If your mindset is more towards the derivative of growth then this is the right place for you.

Things to keep in mind before you invest in a Startup

Investing in a startup is highly lucrative as well as fulfilling but only if it is done at the right time and with proper research.

  • Do your research

Before investing in a company of interest, the first step is to learn about the venture’s business plan. Talk to the respective individuals and clear out all your queries and one must make sure that both parties, the investor and the startup group are on the same page.

  • Understand the different instruments of investing in a startup

Granting a convertible loan is one of the best ways to invest here. Convertible loans are later transformed into shares of the startup company as they have interest rates which build up over the course of the time one invests. There are certain discounts that are highly beneficial for early investors on their shares.

If one is investing for the first time in a startup venture then one must consider having a legal team or an experienced team like OwnersTown on their side to provide guidance throughout the process so as to make wise decisions.

  • Have the right mindset

When investing in anything one majorly expects to get high returns on the investments they make. But when investing in a startup, which can be risky, one must consider a situation where the startup fails to hit the mark and does not do very well.

Having a realistic mindset is what is going to be crucial when investing in a Startup and becoming an Angel investor.

Investing with OwnersTown

Start your path of becoming the next major Angel Investor by investing in the early seed fundraising rounds of selected start-ups. The startup companies that we list out have all successfully passed our comprehensive due diligence process.

You can start investing your capital with us, in a promising startup of your choice, for a minimum capital of Rs. 2,50,000. This allows you to diversify your capital across multiple startups.

By becoming an angel investor, one not only grows their investments by getting high returns,but also is backing up individuals to create an impact in the world.

Think you are up for a high-risk game? Then this is the kind of investment you should place your Capital in and kickstart your angel investment journey with the professional guidance of OwnersTown. The process is taken care of as smoothly as possible by us and we are always available to help.  We offer you with all the data on the exceptional startup options you can invest in, making your venture easier. Get in touch with us or write to us at marketing@ownerstown.com and begin your journey today!

Make a difference by becoming an Angel Investor with OwnersTown!