Angel investors are those who invest seed money into a business to kick start its operation. This investment usually comes in exchange for convertible debt or equity in the ownership of the company. From a startup perspective, angel investments are a great way to secure funds as well as mentorship from the investors working in the relevant industry. Here is how a business can raise angel investment, especially if they are from Bangladesh.  The Angel Investment Landscape of Bangladesh  Bangladesh is still in the early stages of angel investment. There were not many investors a few years back in the startup ecosystem. However, the pace is picking up. Bangladesh Startup Investment Report of 2022 shows that Bangladeshi startups were able to raise $112 million in 2022. A total of 47 startups were able to secure funds, among whom 39 brought unique service propositions. The largest funding was received by ShopUp who were able to raise $65 million from Valar Ventures and Flourish Ventures. About 8% of the total funding came from local investors. On average, the angel investment size for early-stage startups was around $588K. Bangladesh is in the lower tier when it comes to securing venture funds. Read more: How to Gain Funding for Startup: Best Practices to Attract Investors How to Get Angel Investment in Bangladesh  Getting an angel investor to invest is neither straightforward nor easy. A startup will need to put in the work, especially in Bangladesh where the investment ratio is low. There are several key things to consider when it comes to securing angel investment. Here are some of them.  Clear Business Idea and Plan  A startup should have a clear business idea backed up by a strong and detailed plan to secure angel investment. The plan should outline the startup's mission, market opportunity, revenue model, target audience, competition analysis, marketing strategy, and financial projections. A solid business plan is crucial for gaining investor confidence.  Market Validation  Investors look for product or service confidence while investing. As a result, it is important to create a market validation of the startup product or service before making the initial approach for funds.  Market validation can be done by developing a market-viable product. This product or service can be channeled to early adopters and customers. Based on their experience, a positive narrative for the product can be developed. This will play a crucial role in securing early-stage angel investment.  Read more: How to Build Social Capital to Grow Your Business

The startup scenario in Bangladesh first came into existence in the early 2010s. This was a time when Bangladesh was seeing steady growth and increased accessibility all around. There are over 1000 startups in Bangladesh as of 2021 and the number is expected to grow as the country and the economy becomes more digitized. But are there enough funding opportunities for these startups? This is where angel investors come in. Though Bangladesh is yet to achieve a healthy investment ecosystem, angel investment has been playing a key role at the micro-level. Now, what is an angel investment and how do startups stand to benefit from it? Read along to find out. What is angel investment? Angel investment happens through an angel investor, that is someone with a considerable chunk of wealth who’s willing to invest in the early phase of a startup. While it's mostly limited to the scope of a single-person investment, there are instances where an investment company acts as an angel investor in startups. The mechanism of angel investment is similar to other forms of investments. Here an angel investor invests a certain lump sum in the startup in exchange for ownership equity. Read The Difference between a Startup and a Small Business Angel investor faces a lot of risk in terms of the investment itself. A startup has several phases in its growth trajectory. It starts with an idea which then moves onto an MVP or market viable product. After that comes the growth, expansion, and maturity phase. While most venture investors, banks, and equity firms invest from the growth phase with IPO being exclusive to the maturity phase, the scope of an angel investor is limited up until MVP. The initial investment in the idea itself without any proof of product-market fit increases the investment risk exponentially. As a result, you might have to dish out larger equity for a lower investment. The data regarding angel investment in Bangladesh might not be enough to give a glimpse into its implication in the startup sector. However, the lower limit of investment can be as low as 0.5 million BDT to upward of several million dollars.  Read Investment Guide: How Bangladeshi Youths Can Invest money and Create Wealth? What should you look for in an angel investor? Now you might be thinking what’s there to look for in an angel investor? They are literally investing money in your startup when it’s nothing more than an idea. Compared with the rate of startup growth in Bangladesh, the chance of scoring an angel investor is slim as it is. However, there are still some aspects to be considered to make sure you make the most out of the deal and your investor. Because there are more to angel investing than giving up equity for cash. Here are our top 4 picks to consider. Industry knowledge An angel investor should have sufficient knowledge of the investing industry. Think of angel investors as mentors. Someone who has worked in the industry before knows the ins and outs and things to avoid which you won't generally have access to in your starting phase. This will help any startup avoid potential pitfalls. A study conducted by Nesta showed that angel investor investing in a known industry sees a better return on their equity.