Luca Schnetzler Explains Why angel investors should look for start-ups

By Patrick Jones

Apr 08, 2021 09:00 AM EDT

Luca Schnetzler Explains Why angel investors should look for start-ups(Luca Schnetzler) (Credit: Getty Image)

Start-ups form the base of the economy in the U.S. With every passing year, a new group of start-ups are coming to take on the market with their creative ideas and exceptional strategies. While some of these startups are making it big within a short period, others are losing the race because of uninformed decisions and blind concepts.

Start-ups and angel investors go hand in hand. In other words, both are incomplete without each other. While start-ups need funds initially to begin their operations, investors need options to grow their money with higher interest and minimum risk. Risk is definitely a determining factor for an angel investor. Investing in already successful brands can seem to be a risk-aversive decision, but it is not always that way. The bigger the brand, the higher the investment value will be. If the brand fails to keep up with its market demand due to changing trends on incapable operations, then the investor has higher chances of incurring massive loss. However, this is not the case with start-ups.

Netz Capital has found a potential investment option in start-ups because they require nominal capital to start with and generally don't involve any collateral. With start-ups, the return comes in the form of a higher payback rate after a certain period or a substantial share of the company's profit. For any angel investor, it works both ways. Netz Capital has been setting a trend with angel investing in tech start-ups and direct-to-consumer brands for some definite reasons.

Technology has grown exponentially in recent years and with the new development in digital space, it has a long way to go. Tech start-ups with innovative business ideas can be lucrative options to get higher returns on investments. With direct to consumer brands, the benefit is they do not have to share their profit with retailers or wholesalers. This means the manufacturer has complete control of the pricing and the revenue. These DTC brands have a strong potential to grab the market within a short period.

Netz Capital has grown to be a prominent angel investment firm by making smart investment decisions, mostly with start-ups. Some of the start-up businesses Netz Capital has invested in are Social SnowBall, Chirpish, Steam Commerce, and Vibe. Social SnowBall is an affiliate marketing app that is helping other businesses grow with highly targeted affiliate programs. Chirpish is a customer service and support company providing necessary customer feedback and guidance to boost other businesses. Steam Commerce is an e-commerce solution provider helping drop shippers, and Vibe is a haircare brand for men operating as a DTC company.

By considering the ongoing market trends and upcoming business opportunities, Netz Capital has made wise investment decisions. The investment firm has weighed both sides of the risk and gain to choose start-ups over big brands. Obviously, there are investment risks involved in start-ups as well. However, compared to big brands, the loss margin will be less while the return options will be diversified.

Netz Capital has proved itself a leader in angel investment with its in-depth market research and ability to identify potential business strategies. The firm will soon emerge as one of the reputed angel investors for all tech start-ups and DTC brands.

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