Luca Schnetzler on Why Angel Investment Is Critical For Tech Startups

Written in partnership with Ascend

Photo Credit: Luca Schnetzler

Business angels are indirectly helping the economy to grow by boosting small businesses to become multimillion-dollar companies, creating more jobs, and influencing market trends. However, the prime interest of any investor lies in returns. Business angels look for opportunities to grow their money and the most lucrative way to do it is by investing in a promising brand in return for a substantial share of profit. Sometimes the return can be a partial ownership of the company or a payback with a significantly higher rate of interest within a stipulated time.

Investing in an already developed brand compared to a start-up can be a good decision, but the investment amount will be substantially higher. And if the company fails to keep its revenue rolling in during the coming years, the investor will be at a higher risk of losing it all. That’s where the concept of angel investment comes in. Angel investors see start-ups as potentially safer options to invest in for bigger returns. Of course, the start-up has to come up with an innovative idea that will support the ongoing market trend and also work well with upcoming business opportunities, Netz Capital is one such angel investor that has been setting trends in investing in tech start-ups.

Netz Capital is an angel investment firm launched by the professional German footballer Luca Schnetzler. He felt the need to contribute towards the growth of the economy while also growing his money in the process. Thus he came up with the idea of Netz Capital. So far this angel investment form has made some smart investment decisions going by the market trends and forthcoming business developments.

Technology has advanced remarkably in the last decade and will be creating a booming effect in the coming years. With the increasing dependency on technology and the digital space, many start-ups are coming up with innovative ideas to help other businesses grow. A tech start-up that nourishes a plan to grow faster to become a million-dollar company will need an angel investor. The initial capital will boost the business in several ways, including infrastructure, marketing, and customer support service.

Netz Capital identified a lucrative opportunity in tech startups and has helped several companies to grow. One example is Social SnowBall, an affiliate marketing app that is helping businesses expand with highly targeted affiliate programs. Another promising start-up for Netz Capital has been Steam Commerce. This company offers end-to-end e-commerce solutions which include sourcing products, banding, and packaging, warehousing, delivering, and even customer support. With the growing trend in dropshipping and inventories, e-commerce based startups have huge potential to generate revenue for years to come.

Apart from tech start-ups, Netz Capital has also invested in direct-to-consumer start-up brands. While most investors see a risk there, Netz Capital found the hidden potential of these brands to grow exponentially in the future. As direct-to-consumer brands don’t have to share their profit margins with middlemen like wholesalers and retailers, they always have a better chance to generate more revenue.

Netz Capital has made some well-informed decisions to date with their investments. They have not only helped those start-ups, but also created a ripple effect in supporting many other businesses. Going forward Netz Capital will emerge as one of the prudent angel investors for promising start-ups.

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