Often founders face with dilemma of whether investment to be returned if startup fails. Angel Investors are individuals who provide funding to start-ups at their infancy. Further, they encourage entrepreneurs and invest in their idea for equity in return.
Despite knowing the probability of failure, angels invest in ideas they believe in. Besides they put money in various baskets and are well prepared for these situations. Is the angel’s investment to be returned if startup fails? What difference will it make if investment is debt or equity? What percentage should be returned if funds are available? What is to be done if funds are unavailable? If there is money in the bank, should it be returned to the investor?
In this video, Akshay Bushan illustrates us on investment to be returned if start-up fails. Being an investor himself, he provides point of view from the other side of the table. He is currently a partner in VC firm Lightspeed India and an alumnus of Wharton.
This video is part of Start-up 101 series, where our experts provide guidance on all start-up bottle necks. Here are solutions for hundreds of questions you ever had and even for one’s you haven’t thought of yet. Moreover we have condensed huge experience of various mentors and founders into a handy, user-friendly manual.