Angel Investors as Startup Enablers in the Developing World
January 2, 2013 Editor 0
A normative definition that I use as a recovering angel investor myself is that an angel investor actively helps a seed stage startup succeed with both mentorship and capital in exchange for those intangible benefits of mentorship and a return on investment. In World Bank parlance, then, they automatically provide both investments and technical assistance with no agency costs; a great recipe for solving multiple problems (funding capacity, entrepreneurial capability and access to early stage finance) in a cost effective way. Knowing that 318,480 of them invested $22.5 billion on 66,230 ventures in the US and achieved 27% annual returns forms the basis of our hypothesis that angel investing could work well in the developing world.
- Angel or Devil: Who’s Really Investing In Your Start-Up?
- Low-cost scanner could provide ultrasound in developing world
- Can Crowdfunding Work for Developing World Projects?
- Why is Human-Centered Design Important to ICT4D?
- Innovation Africa: enriching farmers’ livelihoods
- Is acceleration the panacea for scaling growth entrepreneurs? Reflections from XL Africa
Categories: World Bank PSD
Subscribe to our stories
- Key lessons for policymakers from China’s financial inclusion experience April 24, 2018
- Can blockchain disrupt gender inequality? April 24, 2018
- Business incubation a means for effective business development April 24, 2018
- A network approach to growing green entrepreneurship April 24, 2018
- What sustainable intensification of mixed farming systems looks like in Ethiopia–case of the Africa RISING project April 24, 2018