A Starter Kit to Become Angel Investor
Becoming an angel investor in a startup can started with a more affordable budget
Based on data compiled by DailySocial, there are at least seven deals in Indonesia that have announced to receive funding from angel investors in 2020.
In a recent conversation with DailySocial, Edward Tirtanata once mentioned the landscape of angel investors in Indonesia. He said, the current angel investor ecosystem is not very developed. In fact, quite a few startups seek access to early-stage funding through this route.
Indonesia currently has an angel investment network through ANGIN (Angel Investment Network Indonesia), however, if you refer to information from a number of startup founders, there is not much access to connect with angel investors. The existence of angel investors in Indonesia is not actually non-existent, it's just that they tend to avoid exposure.
In addition to access, there is another issue that is quite interesting and gain much attention, the amount of investment value to become an angel investor. Can someone who was not quite rich, be an angel investor? If the answer is yes, what is the ideal value should one has to become an angel investor?
Angel Investor's definition
In a blog written by journalist and investment observer Chris Muller, there are some tips that can be implemented by anyone who wants to try their luck as an angel investor, even though they may not be rich.
Before we get there, let's clarify what an angel investor is. Muller defines it as someone who has enough money to invest in an early-stage business or an existing business that is already growing. Similar to investors in general, angel investors crave a return on investment which is usually in the form of equity in the company or revenue sharing.
As citing Entrepreneurs, their motivation to invest is not solely for profit, but based on the desire to help new business. Angel investors can come from various professions, such as doctors, lawyers, suppliers, or business partners. Unlike the VC which stands as an institution to invest other people's money.
When referring to regulations in the United States (US), anyone can become an angel investor as long as they meet the requirements as an "accredited investor" by the Securities and Exchange Commission (SEC) Stock Exchange Commission, which is to have a net worth of $1 million or more (excluding residence principal) and earns $200,000 per year.
How much capital required?
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