Southeast Asian angel investor club AngelCentral today announced its third annual Angel Investor Behavioural Survey Report for 2024, revealing that 80.6 per cent of surveyed angel investors in the region express optimism about the startup ecosystem over the next five to 10 years.
The report also stated that twice as many angels reported gains on their overall portfolios compared to those who have experienced losses.
Additionally, over 36 per cent of angel investors are new to the scene and have opportunistically started their activities in the last two years, demonstrating a continued influx of interest even amid a challenging funding environment.
The report revealed that many angel investors have adapted to the market’s volatility and valuation shifts by implementing various risk mitigation strategies.
Seventy-four per cent reported overall portfolio diversification beyond startups, with most investing less than 10 per cent of their assets in this space. Furthermore, 61.1 per cent are leveraging syndicates to enhance peer learning and validate investment opportunities, while 26.4 per cent have reduced their ticket sizes for each angel investment.
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“I am pleasantly surprised and happy with the maturity of our angel investors. Rather than making knee-jerk reactions
to the market’s gyrations, ASEAN angels have remained focused on the long-term growth story of the startup space and are also actively mitigating their risks,” shared Huang Shao-Ning, Chief Angel at AngelCentral.
“We see similar trends within our club, where most of our member angels now prefer to invest with smaller ticket sizes and via syndicates. Although our total club funding this year remains the same as in 2023, we are witnessing a record influx of new angels joining our club in the past six months.”
The report stated that when evaluating startups for investment, angel investors prioritise potential business opportunities and the strength of the founding team. They also consider founders’ ethical beliefs a common deciding factor.
Interestingly, 30.6 per cent of respondents are new to angel investing with less than two years of experience. The profile of the angel investors remains unchanged, with more than 80 per cent being men in their 40s to 50s who work in a corporate role or who are business owners.
This year’s survey gathers insights from over 70 Southeast Asian angel investors regarding their angel investments. The survey aims to understand the evolving perspectives and strategies of angel investors and provide valuable insights into their investment approach, evaluation processes, returns, and overall mindset.
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The survey defines angel investors as individuals who invest personal money, time, and networks into early-stage companies that are typically in the initial 12-36 months of their operations.
The investment can be made directly (the angel becomes a direct shareholder of the investee company) or indirectly (the investment is syndicated via a special purpose vehicle or informally via another person’s name).
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