Invest In Startups For Equity: A Good Idea Or Bad Idea


Startup Angels Network is an ideal financing platform for startups that need funds to scale and will potentially spend a considerable amount of time and effort to turn their startup into a famous brand. Here, we offer amazing startup funding options in India. 

No Collateral Required for Raising Capital

Unlike airlines and car dealers that have valuable tangible assets and predictable cash flows, budding companies usually have little to no collateral to provide against a conventional loan. Thence, if an investor makes up his mind to offer a loan to an early-stage business, there is no guarantee that they could recover their lent-out amount in the case the startup fails to scale. 

By raising capital by SAN startup investing platform instead of taking loans from financial institutions or money lenders, you can operate your business at the early stages without any worries of repayment. 

But Funding Options in India Come at Certain Cost

However, the expected cost of taking that amount of money is higher. To be simple, traditional loans can be availed at a fixed rate of interest while angel investors invest in startups for equity- that means you have to give a certain percentage of your business to the investor who is backing you up financially in the early stages. In the case of perpetuity, you need to share a percentage of profits with your investor. 

When you invest in startups then there is a great potential for astounding growth and higher returns in comparison to unicorn companies. Due to this reason, you should consider investing in startups for equity. 

Read More...https://startupangelsnetwork.com/



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