It is a known fact that 90% of startups in India fail within five years of operations. One of the reasons startups fail to reach their sixth year is their inability to raise funds. While a young startup might not be ready for investment from a venture capital firm, entrepreneurs can turn to angel investors for support during their early years of starting up.
Angel investors are often high-networth individuals who have the capital to invest and experience to help early-stage startups to navigate their way. In recent years, more and more entrepreneurs have been able to successfully exit their startups and have turned to angel investment in order to help budding entrepreneurs scale their businesses.
These seasoned entrepreneurs have the right mindset, experience and understanding of the Indian startup ecosystem to help budding entrepreneurs. Apart from providing capital, these angels also offer mentorship and help them connect to the right people in the industry which can play an important role in finding new talent and opportunities for growth.
Sanjay Mehta is the founder of a VC firm called 100X.VC. Prior to founding an investment firm, he was the founder of MAIA Intelligence, a business intelligence and analytics company. He became an angel investor after he sold his company to Datamatics Global Services. He is one of the most prolific angel investors in the country and also loves to mentor entrepreneurs. Some of his successful angel investments are OYO, Box8, LogiNext and FabAlley.
Read More: List of Top 25 Angel Investors in India