In the last article, where we covered why not to do Angel Investing, we spoke about how many investors had lost money due to a lack of understanding. Infact many top Angel Investors also suffered heavy losses. All this might have presented a gloomy picture in your mind. We need to understand that every coin has two sides. While many top angel investors failed initially, there was a side where many Angel Investors also succeeded in making heavy profits.

Now a question would arise in your mind. What is it that certain Angel Investors were doing correctly that others didn’t? Were they just more realistic or were the loss-generating a bit too ambitious?

We took the examples of famous Angel Investors like Anupam Mittal who had 25% of his investments sunk as companies shut down early

Anupam Mittal: Anupam Mittal is the founder and CEO of People Group, a leading online matrimonial service in India. He is also a prolific angel investor who has invested in several successful startups such as Druva, Capillary Technologies, and Ola. His investment in Druva was particularly successful, as the cloud data protection company is now valued at over $2 billion.

Jason Calcanis: It isn’t possible to skip the name of Jason Calcanis if we are talking about Angel Investments. Jason Calcanis started his career in the 1990s as a reporter covering the Internet Industry in New York. He then started his own venture with the name ‘Rising Tide Studios’, a media company that was involved in publishing print & online publications. In 2009, Calcanis founded the ‘Open Angel Forum’, a platform that connects early-age startups with Angel Investor. Some of the exceptional achievements of Calcanis include converting 1,00,000$ which translates to ₹80 Lacs ko ₹800 crore. Some of the marquee companies he invested in include Uber, Robinhood, Datastax & Super Human.

In this article, we help you understand what can expect from Angel Investing. We start by taking a look at some stories of successful angel investors in India:

Kunal Bahl: Kunal Bahl is the co-founder and CEO of Snapdeal, one of the largest e-commerce companies in India. However, before founding Snapdeal, Bahl was an angel investor who invested in several successful startups such as FreeCharge and TinyOwl. His investment in FreeCharge was particularly successful, as the company was later acquired by Snapdeal for $400 million.

Rajan Anandan: Rajan Anandan is the former managing director of Google India and a prolific angel investor. He has invested in several successful startups such as Druva, Capillary Technologies, and Innovaccer. His investment in Druva was particularly successful, as the cloud data protection company is now valued at over $2 billion.

Rehan Yar Khan: Rehan Yar Khan is the founder and managing partner of Orios Venture Partners, a leading early-stage investment firm in India. He has invested in several successful startups such as Ola, Druva, and PrettySecrets. His investment in Ola was particularly successful, as the ride-hailing company is now valued at over $10 billion.

Sanjay Swamy: Sanjay Swamy is the founder and managing partner of Prime Venture Partners, a leading early-stage investment firm in India. He has invested in several successful startups such as ZipDial, Ezetap, and HackerRank. His investment in ZipDial was particularly successful, as the mobile engagement platform was later acquired by Twitter.

Alia Bhatt: Alia Bhatt, a renowned actress in Indian Film Industry has been an angel investing in startups for a few years now. Infact one of her most successful investments was in the popular beauty & wellness brand Nykaa. Nykaa has been founded by Falguni Nayar. Nykaa launched its IPO in October 2021 which attracted 82x subscriptions in 3 days, worth around 32.53 Bn$. Today Nykaa is valued at 1.3 Bn US$.

Shilpa Shetty: Shilpa Shetty, another renowned actress in the Indian Film industry is also an avid Angel Investor. Her famous investment into popular Indian skincare startup Mamaearth went viral. Mamearth became a Unicorn in January 2022 by raising 52 Mn$ at a valuation of over 1.2 Bn$. Mamaearth launched its IPO at a whopping valuation of 3 Bn$ which in Indian currency translates to around ₹24,000 crores.

These are just a few examples of successful angel investors in India who have made smart investments in promising startups. Their success stories demonstrate the potential for high returns when investing in Indian startups, and highlight the importance of conducting thorough due diligence before making any investment decisions.

Angel investing is a type of investment where individuals provide capital to early-stage startups in exchange for ownership equity or convertible debt. Angel investors typically invest in startups that are not yet profitable but have high growth potential. Here's what you can expect from angel investing:

Functional Benefit - High Potential Returns:
Angel investing has the potential to generate high returns, with some successful startups yielding returns as high as 100% or more.

However, it's important to keep in mind that investing in early-stage startups is a high risk, and many startups do not succeed. As an angel investor, you should be prepared to lose some or all of your investment in a startup.

For eg. An Indian investor investing in a high-potential returns startup is Ratan Tata's investment in Ola. Ratan Tata, the renowned industrialist and former Chairman of Tata Sons, made a personal investment in Ola, an Indian ride-hailing company, in early 2015. At that time, Ola was competing with global ride-hailing giant Uber in the Indian market. Ratan Tata's investment not only provided a significant infusion of capital but also lent credibility and support to Ola's mission of transforming urban transportation in India. Today, OLA’s net worth is US$ 6.5 Bn.

Emotional Benefit - Support, Groom & Cultivate what you care about:
Angel Investing provides investors with the perfect opportunity of investing in startups, choose the next idea to be supported & make a difference in the world.

It is an opportunity to support innovation, to support talented people who have the potential to positively impact millions of people around the world.

For instance, TATA, with its long-standing legacy of innovation and social responsibility, embodies a sense of purpose and commitment to making a positive impact. By supporting Goodfellows, TATA provides not only financial backing but also mentorship, guidance, and access to its extensive network.

Economic Benefit - Access qualified Deal flow:
Angel Investing provides investors with not only an opportunity to support budding entrepreneurs but also helps minimize the risk of their investment through diversifying their investments.

At Planify, you can find vetted Startups at cheap prices & generate very handsome returns. Infact Planify has a rich experience of providing annual 50% returns on an average investment in its backed startups.

More importantly Planify charges 0% subscription & transaction fee to help enable ease of investments for Investors.

Self-Expressive Benefit - Opportunities to Learn and Network:
Angel investing can be a great way to learn about new industries and technologies and to meet and network with other investors and entrepreneurs.

By investing in startups, you'll gain insights into the entrepreneurial process and may even have the opportunity to mentor or advise the founders of the companies you invest in.

For eg. One real example of an Indian investor investing to gain opportunities to learn and network is the TiE (The Indus Entrepreneurs) is a global organization that fosters entrepreneurship and supports startups through mentoring, networking, and educational initiatives. While TiE itself does not directly make investments, it provides a platform for entrepreneurs to connect with investors and access funding opportunities. One of the notable investments has been in Druva which is a data protection and management company that offers cloud-based solutions. The startup received investments from TiE Charter Members, which are successful entrepreneurs and investors associated with TiE.

Society & Environmental Benefits - Earn an opportunity to shape the future economy:
Angel Investment provides investors with an opportunity to shape the future economy of the country. Investing in startups that have the potential to impact the lives of millions of people can transform a particular industry.

More importantly, today, Startups are a huge source of employment generation & provide entrepreneurs also with a chance to return back to their entrepreneurial community by supporting their fellow entrepreneurs. Infact many startups today are playing a role in both shaping the economy as well as conserving the environment by investing in Green technology.

For eg. Take for instance Renew Solar in which Goldman Sachs, the global investment banking firm has made significant investments. They have been one of the early investors in the company and continue to support its growth. ReNew Power is one of the leading renewable energy companies in India. It was founded in 2011 by Sumant Sinha, a former CEO of Suzlon Energy. The company is dedicated to transforming India's energy landscape by generating clean and sustainable power from renewable sources.

In conclusion, angel investing can be a high-risk, high-reward investment opportunity that requires active involvement and a long-term investment horizon. While there is the potential for high returns, it's important to understand the risks and drawbacks before investing and to have a diversified portfolio of angel investments to minimize the risk of losing money.