Angel Investment Network in India – Recent Trends and Future Prospects

Authors

Shivam Shukla, Assistant Professor
Department of Commerce, Siddharth University, Kapilvastu, Siddharthnagar (U.P.)

Sudhir Kumar Shukla, Professor
Faculty of Commerce & Management Studies, M.G. Kashi Vidyapith, Varanasi (U.P.)

Akshita Shukla
Post Graduate Diploma in Management, Jaipuria Institute of Management, Lucknow (U.P.)

Abstract

In the midst of a growing economy the possibilities for entrepreneurs are increasing day by day. However, the biggest problem in starting a business is raising of capital. In India it has often been seen that about 50 percent of new businesses close within five years of commencement. The only reason is that better management of funds is not possible in them. Significantly, there are several venture capitalists and private equity firms across the country which may come to rescue. By the way, taking their help many times puts extra burden on businessmen. In this context the term angel investment has gained phenomenal prominence in recent times. Basically, angel Investors are a group of investors who invest in early trading. Instead, they take a small stake in the business. These people are either businessmen or top executives of multinational companies. However, it may also be a group of ordinary people who want to invest the funds they hold in a business. There are many such networks across the country. Mumbai Angels, Indian Angels, Hyderabad Network are well-known angel investors. Angel investors typically invest for 8 to 10 years. They monitor the growth of the business and keep an eye on its accounts regularly. If they are dissatisfied, they can also pull their hands off the business. This is the reason that companies in which Angel Investor invests have a better performance than other companies. Angel Investing is in a very early stage in India. This article strives to figure out the operating procedure, future possibilities and precautions for the development a robust angel investment network in India.