Page 45 - Banking Finance December 2017

ARTICLE

ANGEL INVESTOR AND

CROWD FUNDING A

COMPARATIVE STUDY

WITH INDIAN

PERSPECTIVES

Introduction ness start up usually in exchange for convertible debt or
ownership equity.
The term angel originally came from Broadway Theater,
where it was used to describe wealthy individuals who pro-
A small but increasing number of angel investors invest
vided finance for theatrical productions, failing which may
lead to the closure of such theatrical production. Since the online through equity crowed funding or organize them-
investors funded the production at a critical, time they were selves into angel groups or angel networks to share research
and pool their investment capital as well as to provide ad-
accoladed as angel investors.
vice to their portfolio companies. The concept of angel in-
Definition vestor originated from USA.

Wikipedia defines an angel investor who is known as Busi- Features of Angel Funding
ness Angel, Informal Investor, Angel Funder and Seed Inves-
tor as an affluent individual who provides capital for a busi- 1. Angel investors are often retired entrepreneurs or ex-
ecutives who show interest in angel investing beyond
About the author the reason of monetary return.
2. Angel Funding keeps abrest of current developments in
Dr. N. R. Nagarajan M. J. Senthilkumar a particular business arena.
M.Com., M.Phil., Ph.D. M.Com., M.Phil., NET.,
Senior Faculty in Commerce MBA., NET., PGDCA., DGT 3. They are mentor for another generation of entrepre-
(R), & & & & & Associate Professor, neurs.
Sri Kaliswari College Department of Commerce(R), 4. They make use of their experience and networks on a
(Autonomous), Sivakasi Sri Kaliswari College less than full time basis on the venture selected for 3
(Autonomous), Sivaka
angel investments.

BANKING FINANCE | DECEMBER | 2017 | 45

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