The Role of Angel Investing in Asia
12th June 2020 2:00pm Singapore Time
- Angel investors, while still nascent in Asia in comparison to the West, play an extremely important role to plug the gap for funding enterprises that do not qualify for traditional funding methods. When start-ups are in the very early stage, they would be unable to qualify for traditional financing methods from financial institutions. As such, angel investors provide the necessary funding for the start-ups with potential to scale.
- Besides providing capital, angel investors also provide valuable resources such as network and mentoring, and since the angel investor has personally invested, they tend to be more engaged to ensure the best chance of getting a return. Going beyond financial contributions is what really sets angel investors apart from other funders.
- The management team of a start-up is a crucial factor for angel investors to decide whether to invest. The angel investor needs to know whether his/her values are aligned with that of the team, and whether they are able to add value to the organisation.