Technology and Communities can only improve Angel Investing Odds
Look back to 2010 when angels stepped into the local Halo Angel pitching event. The events were the place to go to find early stage startups. After pitching and dinner the best startups would have a queue of investors waiting to talk to them.
Fast forward to 2021 angels don’t need to leave their desk to find early stage startups.
Tech and Communities have improved access for investors to startups.
There are numerous ways of finding deals including:
- Online Networks such as AngelInvestmentNetwork
- Deal Platforms such as Delio and InvestWest which host white label deal sharing for many angel groups
- The “In Launch” deal share platform Curated Capital from EISA
- Pitch Platforms such as FantasticBeasts and Pitchtape
- Syndicates such as AngelGroups
- And don’t forget crowdfunding platforms such Crowdcube
Technology has disrupted the very nature of angel investing. It offers access to a wide range of deals and makes it easier for investors to find companies in sectors that they like and understand. The downside is the sheer deal flow, from emails about deals, deals on platforms, online pitching events. Angel Investors are time poor and can’t look at everything.
This is where the startups need to stand out, they need to be different, have a great product, a great team in a great big market. They need to have a good clear pitchdeck, a well rehearsed pitch and adopt their pitch to suit the needs of the angel investor.
There are also some useful tools for valuation such as Equidam and Valutico
Founder cap tables at Foundrs , Global Shares, legal paperwork at Seedlegals and SEIS / EIS Advanced Assurance from FounderCatalyst
Alongside the disruption of technology is the growth in communities, online networks where startups and investors can meet and get to know each other. We all know this is a dance, similar to dating where it takes time to build a relationship before you invest.
Communities help facilitate these relationships and the more we have the better. They also help startups and investors share experience, knowledge and connections.
Some are angel communities and some lean into vc community and that’s ok as VC’s like to track early stage company progress for later investment.
These include UKBAA, GC Angels, Dorset Angels, Angel Academe, HBAN, GoBeyond, GenZ VC, BackedVC,
By being better connected using tech and being in communities, angel investors have a better chance of connecting with the right type of startup that they like and want to invest into and therefore have a better chance of getting a successful return.
And of course linking the tech, the communities, the startups and the angel investors is the accelerators like Raise.
It’s easier to get involved in startup angel investing, if you chat to others who have been there and done it
If you’d like to know more about Angel Investing check out our Angel Investing 101 Workshop Series
Note if there are any more communities or tech companies that want added to the blog please email Raise