Sanjay Dalmia deems Investment in Indian Start-ups as a Rewarding Option

Over the years, Indian start-up ecosystem has witnessed an exponential growth. Statistics show a projection of more than 11,500 start-ups in the upcoming two years, as compared to 3,100 in 2014. The numbers indicate that it is certainly not just another trend, but a revolution, which has heralded a sea change in the way markets work in the country. Keep in mind the progress, it seems that investing money in a start-up is a sure-shot way to get a return on your investments.

Ace entrepreneur Sanjay Dalmia believes that a number of factors, such as the increase in number of opportunities, funding options, consolidation activities, technological evolution and a flourishing domestic market have contributed in thriving the Indian start-up scenario. Credited with such driving factors, India has emerged as one of the top three countries globally in terms of the number of start-ups founded.The country’s total venture investment in start-ups over the last decade is estimated at ₹1,117 billion.

From driving sustainable economic growth to accelerating employment opportunities across diverse geographical areas, start-up companies benefit a country in numerous ways.As one of the world’s fastest growing start-up ecosystems, the Indian government has introduced start-up schemes like ‘Start-up India’.  

Sanjay Dalmia deems start-ups as the centre of innovation. Thus, investing in a high potential start-up is investing in the future of India, he feels. 
Though, investing in a start-up company may entail its inherent risks, but the low requirement for overhead capital along with the immense potential makes it lucrative option. To put it simply, it means lower risks and higher rewards. 

Making the right investment decision in a start-up requires knowledge and an eye for upcoming trends. It can make you adept at spotting winners. Also, it becomes important to remember that the success of a start-up company is not just limited to having great ideas. It is equally important to ensure that the founders are competent and have a clear business model and plans for the future of the company.

The emergence of equity crowdfunding platforms has provided the investors with an easy access to a wide range of early stage investment opportunities. It is also one of the bestways to find out if your own investing instincts are good.

According to the industry experts, allocating capital to angel investments is indeed one of the most rewarding options. However, it is not advisable to put a large percentage of your savings in early stage investments. You can rather allocate 5% of your overall portfolio into angel investments. This can help you in increasing the returns, along with lowering the risk factors.

As a matter of fact, the people who invest in start-ups and smaller firms assume a way active role in advisory and management, as compared to the more established and publicly traded companies. They have a great responsibility to mentor and actively support the innovation start-ups. It is mainly due to the reason that investing in the early stage provides you with a higher proportion of voting shares. Along with a prominent position, it gives you a ‘voice’ and a ‘say’ in all the vital decisions of the company. The role is not just limited to provide funds. 

It is majorly due to a common need of many start-up companies and entrepreneurs for guidance, mentorship, industry connections, strategic management, etc. Apart from this, investing in start-ups comes with its own set of intangible benefits as well. It can help you in the aspects like problem solving and innovation. Needless to say, anything that offers such wide-ranging benefits is something you should invest in.