How to invest in startups in india ? – Reading the title you surely understand what the topic is. The topic is about how to invest in startups in india and in which way invest in startups before ipo? If you do not know what is startups then i tell you that startups is the companies that starts its business new. You can see that the number of startups in india are growing rapidly.
Some of these startups get success and some of these startups in india face to failure. So if any investor invest in startups and the startups become successful then investor earn money from the startup company share. Similiarly if startups face to failure then investors loose his or her money that he/she invested in startups.
The main difference between startups and stock exchange listed companies is that you can invest small amount in stock exchange listed companies and when you invest in stock market you can easily buy or sell the share of the stock from stock market in stock market timinigs as the volume of shares is many. But it is not same in startups. The startup company share is not tradeable. Startups are usually famous for giving more return than stock market. But the failure rate of startups is also more than stock exchange listed companies.
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When you think to invest in startups you should understand the model and business of the startup at first. As per before invest in stock market we check the company’s performance. The same thing is also applicable for startups. Beacuse of new open startups to analyze the performance and history of startups is very difficult. So the ways how to invest in startups in india are:
How to invest in startups in india ?
1) ANGEL INVESTING:
In that startups you want to invest you have to cantact them personally. In india there is many angel networks. You can invest in startups using this angel networks( First way how to invest in startups in india). The angel networks are:
- Mumbai Angel.
- India Angel.
- Delhi Angel.
- Chennai Angel.
You can register yourself in these angel network’s website. You can see in those website the startups that want to raise fund and you can also hear their speech. As you know you can invest little in stock market but the same thing is not applicable for startups.
To invest in startups you should have a good networth. Many investors and businessmen do angel investing. As the founder of Infosys, Narayan Murthy invests in startups from his another company and also the other businessman do the same thing.
2) CROWDFUNDING:
The next way to invest in startups is crowdfunding. There is many website that raises crowdfunding. They are impactguru.com , catapoolt.com etc. Startups raise crowdfunding for startup using this website. But now crowdfunding is not so popular and startups do not like to raise crowdfunding. Basically startups raise fund from angel investor and VC or venture capital.
3) VENTURE CAPITALS or VC :
Venture Capitals or VC is famous to invest in startups heavily. VC raises fund from investors and then they invest in startups. So if you can not afford angel investing then invest in vc. You can invest a particular amount in vc and vc collect fund from people as like you and then vc invest the fund in startups in india. VC raises the fund from high net worth investors. If you have big capital or you will have big capital in future then you think to invest in startups in india. It is best option.
Here you know the three ways (1) Angel Investing (2) Crowdfunding (3) Venture Capital or VC. If you are interesting in startups please comment so that topics of how to invest in startups in india can be covered.
Best wishes to invest.