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Angel investors continue to bet on business ventures with unproven business models

Many times there are business ventures that struggle to raise funds. This is mostly due to high risk and no guaranteed returns.

Several brilliant ideas fail to even get executed as banks, venture capitalists and financial institutions don’t back them up.

Beating all these odds if someone comes forward to back up an unproven business model these are referred to as Angel investors.




The Angel investment market size worldwide is estimated to be upwards of $50 billion annually.

American entrepreneur Marc Andreessen is said to be richest Angle investor globally.

EUROPE: THE BIGGEST MARKET

Europe in 2019 received more than 90% of its early stage finances from angle investors – it adds up to more than $153 million.



Several startups received huge amount of funding even though the pandemic slowed down growth and earning capacity. The pandemic taught a large number of angel investors diversification – how not putting all your eggs in one basket.

United Kingdom

In the United Kingdom more than half of the angels were actively investing during the pandemic year. More than 55% of them made investment solely during the months of April and July 2020.

Majority of the angels are very confident of their ventures taking off and at least 45% of them even have plans on expanding their investment portfolio by the end of this year.

Spain

A report by aeban business angels stated that over 75% of the Spanish angles that invested funds in 2019 continued to invest all along the next year as well.

SOUTH ASIA: INDIA

The Indian Private Equity and Venture Capital Association (IVCA) reported that investments in startups by super angels and angel networks rose by record high of 24% taking it to 341 start-ups in the pandemic year from 275 start-ups in 2019.

The partner and co-founder of Java Capital, Vinod Shankar said: “Today, there are enough professionals willing to bet on startups as an asset class. If you look at the ideas that are being bet on, you will see that there is a lot more maturity; the founders have clarity with their vision about the product and the market they are going after,”




IVCA also reported that the largest investment made by angel investors in 2020 was the $110 million Series E round in an education technology startup platform called Unacademy.