International Journal of Research in Finance and Marketing
  • Year: 2016
  • Volume: 6
  • Issue: 1

Impact on Angel Funding in Emerging Business Scenario

  • Author:
  • S. Ramanujam1, S Sekar2, J Venkatesh3
  • Total Page Count: 7
  • Page Number: 28 to 34

1Chief Financial Officer, Dr. Agarwal's Eye Hospital Ltd., Chennai-600086

2Principal, Urumu Dhanalakshmi College, Kattur, Tiruchirappalli-630 019, Tamilnadu, India

3Associate Professor, Department of Management Studies, Anna University, Regional Campus at Coimbatore-641 046, Tamilnadu, India

Online published on 20 May, 2016.

Abstract

An angel investor is a High Net worth individual who provides seed capital for the startups for a consideration of certain percentage of equity holdings in the investing entity. Certain Angle investors are investing in the required entities through internet by themselves or through investment bankers or through personal contacts. The term "angel" originally comes from Broadway theater, where it was used to describe wealthy individuals who provided money for theatrical productions that would otherwise have had to shut down. Angel investors are pensioners who got interest in investment or senior professionals, who are venturing in to business activities by sheer passion. These include the professionals who are in touch with latest business developments on regulatory angle or in a particular nature of business and intent to utilize their expertise on their own convenience. The professional angels not only provided funding but also offer technical guidance and sharing their references and contacts. As it is a form of informal way of funding the investors will source the investments through contacts and forums and attending seminars/conferences.

Keywords

Angel, Investors, capital, risks and venture capital