Interestingly, when you’re launching a startup, your first external cheque often doesn’t come from a venture capitalist — it comes from an angel.
- Sun, 14 December 2025
Picture this: You have been pouring everything into your startup for months now- the late nights, early mornings, relentless pitches, hard-earned savings and countless black coffees. And hey! It’s all paying off- you’ve cracked the product, you’re getting the eyeballs and the buzz is building. But behind the scenes, the picture says something completely different.
The bills are mounting, the talent you’ve hired is stretched thin and to get to the next level, you need more than grit, passion and good intentions. You need someone who has faith in your vision and is willing to back you up. That someone is an Angel Investor.
An angel investor is an individual who invests personal funds into early-stage startups in exchange for equity or convertible debt. In India, angel investments typically range between ₹5 lakhs to ₹2 crores. Unlike venture capitalists, angels use their own money, making them more flexible and often more emotionally invested in your success.
To put it simply, an angel investor is someone who invests his/her personal money, time and energy into helping you take your startup off the ground. It is someone who has experience, has seen the ins and outs of your industry and is willing to guide you through the potholes (and find out the loopholes).
In India’s growing startup ecosystem, angels play a crucial role in bridging the gap between ideation and institutional funding.
Interestingly, when you’re launching a startup, your first external cheque often doesn’t come from a venture capitalist — it comes from an angel.
Individual angel investors in India must meet SEBI guidelines, which require a minimum net worth of ₹2 crores (excluding the value of their principal residence). This is set to ensure that these investors have the financial capacity to absorb any potential losses associated with early-startup investments.
Thus, Angel investors are usually experienced entrepreneurs, high-net-worth individuals (HNIs), or corporate executives. Some are active through organized angel networks such as LetsVenture, AngelList India, and Mumbai Angels.
Notable Indian angels include Kunal Shah (who has invested in 286 companies till date. His most recent investment was in Presentations.AI on Jan 30, 2025),Rajan Anandan (who is the current MD of Peak XV and invests in deep tech and AI), and Aprameya Radhakrishna (has a portfolio of 58 companies and invests in India, USA and more countries) who have funded multiple successful startups.
Angel Investors, thus become the perfect mix of experience, empathy and monetary investment that the new startups require.
But, how to gain their attention? And what do they look for?
First and foremost, remember to always prepare before meeting an investor. In fact, we would suggest prepare to a fault. Have a checklist handy.
A clear vision and aim is a precursory. Have a one-line answer to what problem your business is solving and how it is solving it differently than other competitors. Have your finances sorted. Back up whatever you say with strong industry research.
Prepare different types of pitches- start with an elevator pitch and make that air-tight. But remember to end it with a hook or a question that you can use as a follow-up. Have a longer pitch ready as well. More importantly, be honest, open and firm in your presentations.
Lastly, While every investor has a unique approach, there are a few consistent things angels seek:
Before diving into an agreement, founders must pause and evaluate what their startup truly needs—and whether angel investment is the right fit.
While angel investors can be a vital source of early-stage funding, they also come with responsibilities and long-term implications. Before diving into an agreement, founders must pause and evaluate what their startup truly needs—and whether angel investment is the right fit.
Bringing an angel investor onboard often raises expectations. Beyond the funding, it typically involves giving away a portion of equity. This means you’re relinquishing a share of your future earnings and potentially, some control over your company. If your startup scales successfully, that early equity could be worth significantly more later. Founders should consider this carefully—it’s not a no-strings-attached decision.
Not all offers are equal. Here are a few red flags to keep an eye on:
Equity Demands: Investors asking for large stakes (>15%) too early can dilute founder control.
Lack of Domain Expertise: An investor who doesn’t understand your business may not add strategic value.
Board Pressure: Avoid giving up board seats too early, especially without defined roles.
That said, don’t be discouraged. The right angel can be a game-changer—offering mentorship, networks, and insight that go well beyond capital.
Angel investors are often more than just financiers. They can become sounding boards, strategic allies, and connectors within the ecosystem. Choosing the correct angels can make or break your momentum.
As India’s startup scene continues to scale, founders must navigate early funding with clarity, confidence, and careful due diligence.
Bonus Tip: When reaching out to angels, always include your elevator pitch, key traction numbers, and a link to your pitch deck.
And if you’re looking for more practical insights, tips, and definitions, stay tuned to Growth Sense News as we break down the A-Z of Startup Jargon in this series.
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