Singapore Expats

Hi,

Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I would like to expand my current portfolio to invest in new startups or in any potential business.

Any help offered is deeply appreciated. Thanks

Rgds,
Justin

justinng77 wrote:Hi,

Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I would like to expand my current portfolio to invest in new startups or in any potential business.

Any help offered is deeply appreciated. Thanks

Rgds,
Justin

Well you can get in touch with some associations like the Innovators & Entreprenuers Association ,www.idea.org.sg, the Entrepreneurs Club, SVCA (Singapore Venture Capitalists Association) , just to name a few....

justinng77 wrote:Hi,

Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I would like to expand my current portfolio to invest in new startups or in any potential business.

Any help offered is deeply appreciated. Thanks

Rgds,
Justin

Hi Justin,

I wonder what sort of area you're particularly focusing for your investment? I mean IT or Non IT?

Mike

justinng77 wrote:Hi,

Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I would like to expand my current portfolio to invest in new startups or in any potential business.

Any help offered is deeply appreciated. Thanks

Rgds,
Justin

Quite honestly, the only "requirement" is that you have some money that you can put into an investment. A small amount of networking will quickly get you known in business circles since many businesses are looking for angel investors because banks don't loan to startups.

I think your problem, if you are new at this game, is twofold. First, you must know how to do a due diligence investigation of the company you are interested in. At a very minimum this means being able to read and analyze audited financial statements, assess the quality and experience of the management team, and assess the market conditions and industry in which the business will be operating.

One also needs to understand exactly what the cash will be used for. For example, in my business, I need capital for growth to cover salaries and expenses against the time lag (sometimes significant) for payment by my clients. Others may need it for R&D, equipment, marketing, etc. You will also need to decide at what stage you want to get into a business and how much cash you can/will put up... your tolerance of risk may be different for a $200,000 investment versus a $2,000,000 investment.

Second, your expectations of the return you want (the deal) in exchange for the cash you put up should be in line with other similar investors. Asking for too little shorts yourself, given the risks involved, and asking for too much insures that not many people will take you up on your offer(s).

Amongst the things to consider is how much equity you want, what the exit strategy will be, the level of control you will exert, and what sort of growth you will accept as good. You probably don't want to invest in commoditized businesses as the competition is fierce and growth is limited.

If you google "angel investor" you will get a lot of articles directed towards businesses... this will give you some idea of what other investors demand. Here is one article oriented towards people who want to invest.

http://hbswk.hbs.edu/item.jhtml?id=2506 ... reneurship

Good luck.

Thanks SE for your excellent post!

jokerknight wrote: Hi Justin,

I wonder what sort of area you're particularly focusing for your investment? I mean IT or Non IT?

Mike

I specialised in recruitment industry and so i'll be keen to review business plans in this area.

but ja ur in recr. ,then u 12 expand in another rec ??

diu6er wrote:but ja ur in recr. ,then u 12 expand in another rec ??

Is it really that difficult to write using proper English? Jeez, what a crock of crap.

diu6er wrote:but ja ur in recr. ,then u 12 expand in another rec ??

Go easy on him/her Strong Eagle, he'she is only 12 years old or is it his/her IQ? (though my 8-year old can write far better than that.)

One way to begin with is to contact the corporate finance department of larger accounting firms or contact investment boutiques or VCs (although I’m not sure how sophisticated the market is here).

I come from a UK background (but I presume Singapore will have similar rules) which has a number of safeguards in the system for potential investors. These safe guards mean that advertising investment opportunities is covered by the Financial Services Act. For a reputable firm to talk to you, you will have to prove you are a “sophisticated investor”

justinng77 wrote:Hi,

Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I would like to expand my current portfolio to invest in new startups or in any potential business.

Any help offered is deeply appreciated. Thanks

Rgds,
Justin

Whatever you do you should focus on it.

So what is it you really want to do?
Set-up a recruiting business with strategic partners in SG?
Set-up an employment agency in China?
Sell handphones based on demands?
Be an angel investor?

Are you really trying to do everything at once?

justinng77 wrote:Just wondering if anyone knows the requirement to become an angel investor and where could I join to become one myself?

I have been talking to a few Angel Investors, and the number 1 rule is high nett value and business management experiences. Some groups set the minimum personal nett value at $1mil. They wouldn't want to bring someone onboard who can't afford to lose the sum of money. Some of these angel investors network around but does not join any of these VCs. They can still carry on with investing and mentoring with their own assessment.

You might want to check around for entrepreneurs who are lacking in funds. There are countless of them around (me being one of them), and seemingly the investor-entrepreneur ratio is a little out.

Get in touch with me if you'd like, because I am speaking to another Angel Investor soon. I can introduce you to him, but whatever dealings is between the two of you.

Angel investors don't generally invest the same levels as VCs. Angels generally are from about 20k to about $1 million.

VCs are much bigger players and usually come in after proof of concept or later into the picture. They would invest much more than $1 million.

There is an angel investor group here in Singapore called Bansea [www.bansea.org]

Maybe You wanna try out ACE? They shows healthy portfolio and they consist of alotsa locals