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Angel Investors in Asia

April 25th, 2009

Angel Investors in Asia

Guide to Angel Investors in Asia

Angel investment in Asia is a significant source of capital raising for businesses. Investments by private high net worth individuals represent a very high proportion of capital raising in Asia especially for early stage investment.

In many respects, it has been a traditional way of doing business in the region. For many centuries, Arab and Chinese traders were financed by wealthly merchants and guilds to take risks in establishing new trade routes and business across all of Asia and the Middle east. These networks of trade and finance were the foundation of business in Asia. Thesedays, it is a matter of very informal networking of friends, relatives and close associates that is a major source of small and medium scale investor funding.

Formal angel investment clubs of the style we see in Europe and the United States are not the norm in Asia. Angel investment clubs and associations are present in only a few countries in Asia. The networking side of business in much less formalised and this actually does create more of a challenge for entrepreneurs to raise capital in Asia. This is especially the case for new types of business which are appearing in Asia where the support network is less established. It is quite common to see entrepreneurs seeking funding travelling to Singapore from places such such as Vietnam, Thailand and from Bahrain, Pakistan and Saudi Arabia to Dubai to meet angel investors.

In Dubai, there is the Arab Business Angels Network (ABAN) which is to provide early stage seed funding for businesses to develop in the MiddleEast and North Africa. In Singapore, there is the Business Angels Network SouthEast Asia (BANSEA) Both are highly recommended for those entrepreneurs seeking to raise capital for early stage investments.

If you are seeking funding, then you need to ensure that you are prepared with your investor presentation. Angel investor associations in Asia have demanding criteria for entrepreneurs that require submission of business plans prior to having any opportunity to present in front of potential investors.

As always, professional advice is recommended and there are workshops provided to entrepreneurs in Singapore and Dubai to assist those if making a better investment presentation. If you are seeking to raise capital through angel investor associations then invest the time and resources to meet with angel investors is worth the effort, even if you may not obtain finance the process can certainly improve your business plan.

Angel Investor

April 25th, 2009

Angel Investor

Great Tips Any Angel Investor Can Use

The AngelConf this year provided some great insights to angel investors.  A great group of successful angel investors were the speakers at the conference and they imparted knowledge on other angel investors.  Venture Blog shares the best of the advice that any angel investor would benefit from following:

  • [My personal favorite]It’s a small community — if you screw one entrepreneur, you’ll be out of the angel business because entrepreneurs talk (Conway)
  • Angel investing is about learning on the job, which means that you can plan on screwing up your first 10 deals at least (McClure)
  • If you assume that the money is gone once you’ve invested it — that it is like a lottery ticket — then you will have a better time angel investing (Buchheit)
  • Work with other angel investors so that you can get the advantage of their expertise (Zurich)
  • There is no rational way to arrive at valuation, so don’t be overly concerned about getting it right (Graham)
  • Don’t worry if the idea seems crazy — if it didn’t seem crazy, it would be too late to invest as an angel (Graham)
  • The lifeblood of angel investors is deal flow — you need huge deal flow to find enough stuff that is worth investing in (Ravikant)
  • The best deals come from other angels (Ravikant)
  • Don’t be afraid to throw a little dynamite into the status quo and see what comes out of it — often times interesting stuff emerges (and sometimes nothing does) (Dearing)
  • The Rule of 12 — you need to invest in 12 companies to have statistical diversity — invest in fewer than 12 deals and you run the risk of them all failing (Maples)
  • Like in the movie “Oceans 11,” you want to pull together the best team of angel specialists there are out there — it increases the likelihood that the company will succeed (Maples)
  • Help bring your entrepreneurs together so that they can learn from one another (Poler)
  • * By being a connector, you will see the most interesting stuff and work with the most interesting people (Senkut)
  • Angel investing is all about the syndicate — you can lead if you want to but it can be lonely until others join in the syndicate (Clavier)
  • Angel investors need to distinguish themselves from others with money — what do you bring to the table? Contacts. Experience. Advice. (Young)
  • Only invest in stuff you actually know something about — otherwise you’re just buying a lottery ticket (Young)

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