ANGEL INVESTNG

Angels are the earliest of the early stage investors. For budding entrepreneurs, who wish to start their own enterprise, Angel Investors are the people to look out for. They invest in the about to start enterprises with a decent amount of the total investment that is required to kick off the enterprise. Generally, Angel Investors are said to be the bridge between stage where the enterprise is self funded to he stage where the business requires Venture Capital. For many entrepreneurs, angels provide capital and also valuable guidance and strategic assistance that is very invaluable.
Angel Investors bear high risk as they invest in the starting ground of a new enterprise and the risk involved is much higher than that in Venture Capital.This is because Angel Investors lose heavily when the newly started enterprise fail at a very early stage professional angel investors seek investments that have the potential to return at least 10 or more times their original investment within 5 years, through a defined exit strategy such as plans for an IPO(Initial Public Offer) or an Acquisition. But the rate of return on the investment would be very low as the growth period for a new business takes time to become successful . Angel Investors mostly invest in the areas of retail, entertainment ,internet, education,pharma and any any other leading cutting edge technologies in any field which appears to be a safe bet.

Scenario in India : In India, the Angel network is slowly developing as small scale investments in IT and Retail sectors pioneering the way to future prospects of investments in India.Usually, Angel investors are good old venture capitalists or retired personnel and other small and medium size financial institutions who would want their money to work on its own.
Indian Angel Network is India’s first & largest Angel network with successful entrepreneurs and high profile CEOs interested in investing in early stage businesses across India, which have potential to create disproportionate value.
http://www.indianangelnetwork.com/