Investing in entrepreneur, rather than firm

An angel investor is usually a wealthy individual who provides capital for start-ups, usually in exchange for debt or equity.

Unlike traditional investors, angels are usually looking to invest not just in the company but also in the entrepreneur. Investing in the person may matter more than investing in the business plan.

They tend to develop close mentoring relationships with the entrepreneurs, share lessons on what they have learnt as businessmen, and provide valuable contacts who can give the entrepreneurs a leg-up.

Well-known angels here include DBS Group chairman Koh Boon Hwee, former Singapore Exchange chief executive Hsieh Fu Hua, and chairman and chief executive of Creative Technology Sim Wong Hoo.

Angel investors sometimes group into networks to trade information and pool investment capital.

In Singapore, existing networks include the Business Angel Network (South East Asia) and Singapore Investment Network.

The first Asian Business Angel Forum was held at the Pan Pacific Hotel here earlier this week. The two-day event was attended by about 150 participants, including 50 entrepreneurs and 75 angels.

The event also marked the formation of a regional angel network, Pan-Asia Business Angel Network, comprising at least seven members such as the Australian Association of Angel Investors, China Business Angel Network and Mumbai Angels.

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