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Are these correct examples of Angel Investment?

Example 1) Shripal Morakhia's "Smaaash" is backed by Sachin Tendulkar who is the brand ambassador. Example 2) Actors Genelia and Riteish Deshmukh have turned entrepreneurs with their latest venture â?? Imagine Meats â?? a plant-based meat foods company. The actor couple which had turned vegan three years ago, is betting on the plant-based meat trend. In above Sachin Tendulkar, Genelia and Riteish are Angel investors, right?


Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

11-Dec-20 16:42

26

Answers (2)

Best Answer

No. In sachin's case he has a large share and in case of the plant based meat company the couple have started it on their own. Neither investment is angel investment. Angel investment is made by family friends and professional angels, who have other job and invest small money on a very basic idea / early business plan . They put amounts usually less than 2 cr . Secondly they put at very early stage and do not run the business and have very little equity stake -less than 5%. Investments in startups which qualify for these parameters are called angel investments


Sriram Somayajula

Sriram Somayajula

Admin

11-Dec-20 18:44