Angel Funds : The New Type of Alternative Investment Fund in India

Startup companies and emerging ventures often face difficulty in gathering funds for their business entities. A group of investors who are wealthy and who are interested in new business ideas having potential, always come to the rescue of such startup companies. These investors are angels who not only provide funds at the crucial beginning of an entrepreneurship but also help them with own expertise and contacts in the market. But the question that arises is: What do such investors expect in return and how different are they from the traditional lenders? This paper aims to study the concept of angel investors, their role in startup fund raising and the merits and demerits of angel investment in a startup. The paper gives an overall view of the concept of angel investors and angel funds and the Indian legal framework governing the same