‘Angel investors must think beyond money’

TiE Global board of trustees chairman Praveen Tailam informed that just one round of investment in any startup will not be sufficient.

Hyderabad: While investing in startups is growing in India, angel investment is a different ball game altogether and needs a different set of skills, say startup and investment experts. Angel investors need to look beyond money in order to invest in early-stage startups and must bring value to the growth of the startup.

Speaking at The Angel Investor Masterclass organized by Startup Telangana, Telangana State Innovation Cell (TSIC) and T-Hub, TiE Global board of trustees chairman Praveen Tailam said, “Investment needs to be a long-term strategy and investors need to look beyond money. It is also important to invest in a good team rather than the idea as pivoting will be easier when the team is good. Investors also need to go and invest in those companies where they can help with their networking, mentoring and of course money.”

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Tailam who has invested in many startups in the US also informed that just one round of investment in any startup will not be sufficient and investors need to be prepared and ready to invest in multiple rounds in order to stay in the long run. In terms of reviewing startup performance, he said that while quarterly reports from the founders should be sufficient, it is also important to have an all-hands on deck meeting with the investors, board members and founders of the startup.

T-Hub, CTO – Advisory, Naveen Alluri provided details on the various points to be considered by angel investors while investing in any startup. He said that angel investors usually invest up to Rs 6 crore and can start from as low as Rs 25 lakh in startups. “The sweet spot for an angel investor is Rs 3 crore and they are the new asset class in the high-net-worth individuals’ portfolio,” he said.

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