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ANGEL ORGANIZATION CHALLENGES
creasing the likelihood of success- ful investment outcomes. Recent- ly, the emergence of investment groups and programming targeted at under-represented investors and entrepreneurs has allowed angel or- ganizations to contribute to greater inclusiveness in the market for en- trepreneurial finance. Given the vital role that angel orga- nizations play in the entrepreneurial ecosystem, it is critical to under- stand the challenges they encoun- ter in facilitating the flow of private funds into entrepreneurial ventures. Angel organizations were therefore invited to indicate the short-term and long-term challenges and ob-
stacles they are facing in facilitating investment activity.
ganizations also support their new members with educational resourc- es detailing the benefits and risks of angel investing and the various stages of the investment process (e.g. due diligence, valuation, share- holder agreements, adding value, exit). Notably, the educational re- sources offered to angels are some- times also utilized by entrepreneurs. There is a need to further engage with entrepreneurs, both to coach them before pitching to ensure a pipeline of future investment op- portunities and to provide feedback and support following pitch events.
The key theme in the responses re- lated to their capacity constraints. This is a longstanding issue. Angel organizations typically undertake a range of activities that facilitate in- vestment activity. On the investor front, this includes engaging with existing members, notably keeping them up-to-date on how compa- nies are progressing, attracting new investors, sourcing new deals and managing deal flow. Angel organi- zations manage the initial screening of investment opportunities on be- half of their members and support the due diligence process. Angel or-
Several angel organizations reported that they lacked the administrative
BY PROFESSOR COLIN MASON
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