Africa needs more Angel Investors

Africa needs more Angel Investors

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Angel investors are a largely tapped medium for entrepreneurial investments and small/medium scale businesses in Africa. This is the age long traditional means of getting family, friends and individuals from your network to invest in your startup and businesses. It can also be viewed as the communal investment method.

Before the rise in the recognition and support for small investments on the continent by the government and other corporate stakeholders, this was the major way individuals were able to fund their startups. Most people could not meet up with the demands for getting bank loans to fund their enterprises.

The orientation and awareness that has become our reality now has expanded access to financial support for startups, with a lot of organizations supporting innovative business ideas and so many financial institutions have made loans more accessible for small and medium scale businesses with less strict requirements.

Still, Angel investment is consistently  the source of a large percentage of outsourced business funding in Africa, even though because it is a more traditional and informal investment method, it is perceived to come with greater risks for the investor.

Platforms like the African Business Angel Network (ABAN) and VC4A have done a lot to connect startups with ideas in Africa to Angel Investors globally, supporting the development of early stage investment and creating a reliable funding network for businesses.

Alternative funding methods should be explored and finding the best way to network and connect in your communities might just be what your business idea needs to become a practical reality.

 

 


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