Insights from Industry Leaders
The allure of angel investing lies in its potential to drive innovation and foster the growth of promising startups. We had the opportunity to attend an illuminating panel discussion titled “Unleash Your Inner Startup Investor: Demystifying Angel Investing in Thailand”, organized and hosted by Paul Meyers, Head Coach and Founder of Asia Founder Coaching. Held at The Great Room Gaysorn in Bangkok, a venue that buzzed with entrepreneurial energy, the event featured insights from seasoned investors and industry veterans, shedding light on the nuances of angel investing in the Thai startup ecosystem.
The Panelists
Moderated by Paul Meyers from Asia Founder Coaching, the panel brought together an impressive lineup of speakers:
– Ankit Upadhyay: A partner at A2D Ventures, Ankit has a storied background in startup investments, including an early bet on Kevin Systrom, whose startup later became Instagram.
– Pijittra “Gigi” Trirattanathada: Representing Aurora Design PLC, Gigi shared her firsthand experiences in raising significant seed capital.
– Rik Schaap: A veteran angel investor and board member, Rik has invested across Europe, North America, and Asia, bringing a wealth of experience to the discussion.
Understanding Angel Investing
The evening began with a fundamental question: What is an angel investor?
Angel investors are individuals who provide capital for startups, often in exchange for ownership equity or convertible debt. Unlike venture capitalists, who manage pooled funds, angels invest their personal funds, bringing not only financial support but also mentorship and industry connections.
Personal Journeys in Angel Investing
Each panelist shared their unique journey into the world of angel investing:
- Gigi recounted her experience of raising $5 million in seed money for her first project. The process was demanding, requiring her to onboard a co-founder and navigate the challenging landscape of early-stage funding.
- Ankit highlighted the stark differences between raising funds in the US and Thailand. Although he missed the early stage investment in what would become Instagram, his experience underscored his investment acumen. He noted the unique challenges within Thailand’s market, such as the difficulty in raising funds and the necessity for more streamlined processes. This realization led him to start a syndicate, aimed at making the fundraising process more efficient and accessible for startups in Thailand.
- Rik humorously shared that he “makes people cry,” highlighting the crude reality of the startup world. He emphasized that 60% of an angel’s role is to help businesses grow. His global perspective reinforced the value angels bring beyond capital — offering guidance and knowledge essential for scaling startups.
Becoming an Angel Investor
The panelists provided practical advice for aspiring angel investors:
- Networking: Gigi emphasized leveraging LinkedIn to find like-minded individuals and seek mentorship.
- Education: Ankit advised potential angels to educate themselves about the asset class, understanding the high risks and rewards involved. Rik mentioned that Asia has a more corporate approach, and that providing contacts to startups (on a pro bono basis) didn’t necessarily mean that he should also do introductions or follow-ups.
- Due Diligence: Ankit also underscored the significance of doing thorough due diligence on founders, mentioning platforms like AngelList and A2D, and the necessity of spending a lot of time understanding the founders’ backgrounds, even looking into personal aspects like social media activity to gauge reliability.
Emotional Detachment and Strategic Investments
When asked about investing in an hypothetical AI startup founded by relative, the panelists unanimously agreed on the importance of detaching emotions from business decisions. Rik advised leaving emotions at the door on focusing on the business only, while Gigi recommended finding additional investors to build a robust cap table, making the investment more attractive and look like a hot deal. Ankit emphasized the need to see traction before classifying a deal as “hot.”
Liquidity in Startup Investments
Ankit discussed the inherent illiquidity of startup investments, emphasizing that even if a company is performing well, investors cannot readily liquidate their positions without an external buyer, such as through an IPO or M&A. He highlighted that, of the roughly 10% of startups that survive the initial years, a typical exit timeline for seed investments is usually around 8 to 10 years.
Angels vs. Venture Capitalists
The discussion then shifted to why a startup might choose angel investors over venture capitalists. Gigi noted that angels are often easier to approach and bring valuable industry knowledge and connections. She shared her experience, emphasizing the importance of leveraging networks, such as LinkedIn, to find like-minded individuals willing to help.
Characteristics of a Great Angel Investor
The panel concluded by describing what makes a great angel investor:
- Rik: Emphasized that great angels can come from any background. He noted that 60% of an angel’s work is helping businesses grow, highlighting that their value extends beyond financial investment to providing knowledge and emotional support.
- Ankit: Valued those who take the time to understand the business deeply. He stressed the importance of investor-founder fit, explaining that an effective angel investor is one who engages deeply with the business, asks the right questions, and maintains ongoing communication. Ankit also pointed out the importance of learning from failures and being adaptable.
- Gigi: Appreciated investors who are proactive in meeting and supporting founders. She discussed how vital it is for angels to be approachable and willing to network, leveraging their connections to benefit the startups they invest in.
Q&A Session
The event wrapped up with a Q&A session, allowing attendees to ask more specific questions to learn about the intricacies of angel investing. The panelists provided actionable insights, reinforcing the theme that angel investors play a crucial role in nurturing and scaling startups.
Conclusion
“Unleash Your Inner Startup Investor” offered a wealth of knowledge for anyone interested in angel investing. The panelists’ diverse experiences and practical advice illuminated the path for aspiring investors, highlighting the significant impact they can have on the startup ecosystem.
For those interested in exploring this exciting field, the event underscored the importance of networking, education, and strategic investment. As Thailand’s startup scene continues to evolve, the role of angel investors will undoubtedly become increasingly vital, driving innovation and economic growth.
Here are a few pointer to help you step into the startup venture world:
- A2D Ventures: https://www.a2dventures.com/
- World Business Angels Investment Forum Thailand: https://thailand.wbaforum.org/
- Thai Angel Investors: https://www.thaiangelinvestors.com/เกี่ยวกับเรา/
- Wows Global: https://wowsglobal.com/
Leave a Reply