Do angels invest only in companies close to their location?

Typically, angel investors are participative investors. I.e. apart from the money, they provide mentoring and advice to the startups they invest in. Hence, the preference is to invest in companies that they could meet fairly regularly. In fact, startups should seek angel investors, or at least some of the angel investors in case of an angel group investing, to be from their city.

As the concept of angel investing becomes more popular, a number of angel investors who co-invest in deals are open to investing in companies that are not close to their location. However, it will be in the interest of the investors as well as the startup to have at least the lead investor in the city where they are based.

 

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Author: Prajakt Raut

Prajakt Raut is the founder of Applyifi.com, and author of the book for startups - ‘Starting Up & Fund Raising’ Prajakt personal goal in life is to encourage and assist a 100,000 people to become entrepreneurs. _____________ Prajakt is the founder of Applyifi - an online platform that provides startups a 36-point scorecard and assessment report on the venture's investment readiness [www.applyifi.com], and helps them improve their odds of getting funded. Prajakt is also the founding partner of The Growth Labs, a platform where growth-stage companies get sharp, incisive advice from senior professionals and experienced entrepreneurs. [www.thegrowthlabs.in] Before starting Applyifi, Prajakt was the head of operations at IAN, founding member of a leading incubator, and the Asia-Director for TiE (2004 - 2007). Previously Prajakt had co-founded Orange Cross, a healthcare services company, and was part of the founding team member of Idealake Technologies. While in college Prajakt had founded a printing business and has spent over 10 years working in leading advertising agencies. Prajakt’s book, ‘Starting Up & Fund Raising’, helps startups understand an investor’s perspective, and helps them improve their odds of getting funded. The book also helps entrepreneurs understand the building blocks of a business.

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