Community Angel Networks: An Opportunity to Network and Give Back.
In today's world, with limited access to funding, angel networks have become one of the most important resources for startups, who must move fast to get their products off the ground, before they become obsolete.
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What are Community Angel Networks?
Angel networks are a great alternative to cold calls, especially for startups. They enable those who have a limited number of resources to reach out to potential investors at the earliest stages of the business.
While platforms are good means of fundraising, they usually offer a higher range of involvement with the startups that use them. Community Angel Networks also offer startups another option in raising funds by creating networks of other angels in their territory which help give visibility to startup campaign, increase interest in potential investors, as well as ensure that you gain access to different types of investors by virtue of being connected to others who have already raised funds in similar situations.
Angel networks for startup fundraising were created to connect a startup with angel investors. The startup puts out a request for funding, and the entrepreneur gets in touch with professionals who match their requirements. An angel investor will invest in small amounts of money from his/her own portfolio, or from other funds or professional investors such as hedge funds and private equity funds. The startup takes this money and uses it to continue growing its business (to either grow bigger or hire new staff).
IIT Bombay Community Angel Network
IIT Bombay's alumni body also runs a successful startup crowdfunding platform called IIT Startups which aims to help budding entrepreneurs raise funds from private investors through their crowd funding website.
The IIT Startups is an initiative to raise awareness on the importance of angel investing in the startup ecosystem, especially among students and alumni. The network helps startups access funds, mentorship, and growth opportunities by providing a platform for angel investors to meet and get connected with entrepreneurs.
The platform aims to provide a single window access to start-ups and reduce their dependence on traditional channels like incubators. The initiative not only helps young entrepreneurs but also creates opportunities for other stakeholders like government agencies, universities, and other institutions to work together towards a common objective.
The network is open to all startups, regardless of the stage they are in. The program helps startups by providing access to high-quality mentors, investors and experts who will help them in reaching their goals. It also helps them with their business development and marketing activities. It also runs training workshops for entrepreneurs on how to run a startup effectively.
The network has set up a database of about 1,500 investors and 250 entrepreneurs. The entrepreneurs can go through the database and find angels who are interested in investing in their projects. Once they select an investor, they can pitch the investor their idea and make an appointment date for the meeting.
Jain Community JITO -Community Angel Network for Startup Fundraising
The Jain Community is an exclusive group of people who are interested in helping startups get off the ground. It provides a platform for entrepreneurs and investors to connect. They do not charge any fees or commissions. They only ask for a small contribution from each person who wants to join their community.
Their goal is to provide a free service for startups, so that they can focus on their business. In return, they want to make it easier for them to find funding from angels and VCs.
Jain Community JITO is a community of angel investors and startup founders who collaborate to help each other. They also foster the growth of startups by providing guidance, industry exposure,mentorship, and access to capital. Their goal is to support startups as they grow and help them achieve their dreams.
The main objective of this platform is to make the community aware of various resources available in the form of seminars, workshops, training-courses, business plan contests etc., which can help them in their journey towards success.
On this platform people can contribute to startups based on their knowledge, expertise, and time. It is also a way for people who are not founders but want to be involved with startups in any way possible - be it as an investor, advisor, or mentor.
Anyone can sign up on the website and start contributing towards startups they believe in or want to support. The entire process is very simple: you just need to sign up with your name and email address before contributing money towards any project that catches your interest or meets your criteria.
Process of Community Angel Networks
Community Angel Network provides angel investors a place to connect with startups that are seeking funding, and the platform provides support for startups who might be too early for traditional venture investment. The startup needs to meet certain requirements prior to signing up.
After the startup has verified their account, they need to complete a 15-minute questionnaire about their business ideas.
Community Angel Network will assess your idea and determine whether it would be a good fit for the network.
If your idea is accepted, you will work with a dedicated Community Angel Network specialist to upload all relevant documents.
Once accepted into the program, each step of your project will be reviewed and approved prior to release of funds and moving onto the next phase.
Each phase has different levels of reporting requirements based on how much money you are raising.
Benefits of Community Angel Network for Startups
Here are some of the benefits of community angel networks:
Find a co-investor
Help the entrepreneur establish goals and objectives.
Help the entrepreneur find the right team.
Help the entrepreneur build the right business model.
Help the entrepreneur build an elevator pitch and communication plan.
Help the entrepreneur build a fundraising strategy and approach investors.
Provide a network to investors that are interested in investing in startups.
Professional Network.
Ecosystem Support.
Intensive Training.
Conclusion
Community angel network’s goal is to connect entrepreneurs, startups, investors, and other funding sources by putting them in contact with other like-minded people who share similar goals and motivations to mutually benefit their business ventures before the right time comes when these entrepreneurs have a stronger network presence than they did before. A powerful network will always be able to compensate the lack of senior management credibility or established business credibility that is often associated with startups at their early stages of development, especially with crowdfunding platforms where certain business models will be more accepted than others. It has been shown throughout history that by joining together with other individuals and coming up with an idea on how to solve everyone's problem, a community can build much more than an individual on their own can do.