Asra Nadeem

What is an investment, and why would you invest.

This article is written by Nardine B. M’barek, a Contributor Author at Startup Istanbul.

Mrs. Asra Nadeem works as a Program Director at Draper University. The latter represents a partner at an early stage, they invest in early-stage companies that come through their program. They did not make any investment yet, but during the last 4 or 5 years, they had around 400 active companies that came out of Drape university who raised up to $80 Million in seed funding. In this university,  everything taught is taught by industry experts from specific fields, not by teachers.

The first thing to know is what an investment is. It is basically money that could be either yours or someone else’s, and which you put into something while expecting a certain level of return that could be really high. Angel investors are the first leg of an investment, they help out the startup, guide and mentor the company’s staff and entrepreneurs.

There are multiple startup funding rounds of course, and the majority of people thinks that the Angel stage is when the idea of the startup needs to be created, but that is wrong, If someone comes at you and asks you for an investment, while the only thing they have got is an idea, then you cannot invest in that, you rather need to wait until they prove themselves, as well as their idea, to you. In other words, do not invest unless you have got a product ready.

Angel investors and early-stage funding are different things. If you are an angel, then the initial money invested if yours, and you will be expecting 100% return that is going to be yours. However, if it is an early stage funding, then they are people who are investing money that is not theirs and will expect around 20% of return.

Now, why investing in the first place? Simply because it could be life-changing for you, you can change your world, the world actually, and help make a bigger impact. You can also stay current with ideas, technology, markets, etc. You can engage in entrepreneurship without having much responsibility. Now, If you do not feel that you are the person who could make this kind of impact, and you’re not passionate about the problem you are investing in, then do not do it

If you are legally, mentally, and financially ready to begin being an Angel, then how to find the right companies to invest in? There are two kinds of deal flow, the non-proprietary deal flow which is open to everyone on the market, here you can get a deal or not, but this is a good way to start when you are a beginner. The other type is the proprietary deal flow, where deals come to you without being told to anyone else, they are shared with you by founders based on your reputation and experience.

If you know these few steps on how to become an Angel, then getting to know the rest would be easy for you. Good luck with your future projects!

─ April 12, 2020