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.
- Can Crowdfunding Work for Developing World Projects?
- Angel or Devil: Who’s Really Investing In Your Start-Up?
- Why is Human-Centered Design Important to ICT4D?
- Low-cost scanner could provide ultrasound in developing world
- Innovation Africa: enriching farmers’ livelihoods
- Culture – a Powerful Innovation Barrier
Categories: World Bank PSD
Subscribe to our stories
- The Strategic Role of Design in Driving Digital Innovation June 10, 2021
- Correction to: Hybrid mosquitoes? Evidence from rural Tanzania on how local communities conceptualize and respond to modified mosquitoes as a tool for malaria control June 10, 2021
- BRIEF FOCUS: Optimal spacing for groundnuts in smallholder farming systems June 9, 2021
- COVID-19 pandemic: impacts on the achievements of Sustainable Development Goals in Africa June 9, 2021
- Explicit knowledge networks and their relationship with productivity in SMEs May 30, 2021