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The risk in this asset class is manifold, and includes concept risk, execution risk, people risk, mortality risk, and liquidity risk. The chances of losing invested capital are reasonably high and it is prudent to minimize that risk.

However, having been tasked to write on the subject, the best I might do is to reflect on my own experience as a Lead angel and speak in first-person terms about what it meant to me. This piece hence comes in conversational tones, ‘warts and all’ and more candid than may have been bargained for.

So the first step towards building your start up is putting together a good team. Remember that the employees you hire can make or break your business. Hiring the right people makes all the difference, especially in the early days. Here are a few ways in helping you make the decision a little easier.

Over the course of 2019, India saw the emergence of 7 new unicorns, bringing the total count to 24, standing third only after the US and China. This is the vote of confidence that the future of the Indian Start-up Industry needed to attract small investors into this booming sector. You need not hire a broker or be a Warren Buffett to find the right start-up to invest in. Let’s start with the basics.

Some key factors that influence investors’ evaluation of startup s potential include detailed business plans, competitive advantage, previous knowledge and experience, personal preference, and an array of other non-financial considerations.

Seven unicorn start-ups emerged and four were publicly listed. 2020 started with immense expectations for the industry but funding took a major hit in May as the COVID-19 pandemic took over the country. Funding in the start-up sector plunged by 81.1% in March, 84% in April and 57% in May according to data by Tracxn.

Angel Investors are high net worth individuals who provide private, early-stage capital for businesses. They function individually, or in groups and networks. No two Angel Investors operate the same way and investment varies from the type of deal, industry, company stages, to investment sum.

Angel Tax is one term that the start-up Industry is most skeptical about. The tax was introduced in the year 2012, but the Government had promised to exempt start-ups from it. In 2019, the government did not completely scrape the tax but made certain amendments giving some breathing space to start-ups.

New entrepreneurs find it increasingly difficult to seed credit from the market, and therefore the concept of Angel Investment came into being. As an entrepreneur or businessman, it is pertinent that you identify the needs and wants of the customers and solve their problems. In the process of angel investment, the investors are your customers, who have certain expectations from your Business Model, your product, and even you as an entrepreneur.