In this segment, we want to talk about the people behind a startup’s first few paychecks.
Business management theory would say that the first people who would give startup money to founders are the friends, family and fools, or people who give what they have in their pockets not because they buy into the founder’s idea, but because they genuinely want to help.
As the company grows over time, startup founders would then seek to raise money from venture capital firms or institutional investors to scale their businesses.
But between getting money from friends, family and fools and getting money from institutional investors lie a very special group of people. They’re angels who would put their capital in early stage startups based on their experience and subject expertise.
But how do angel investors work, and how do they decide on what to invest?
How far do they negotiate for a larger stake in the startups they invest in, how much say do they have in a startup’s direction for the future, and how do they prevent dilution as startups seek further funding from larger investors?
Also – does it make sense for angels to join angel syndicates and which are some of the companies that angels are seeking in the fintech field right now?
As part of MONEY FM’s on the ground coverage of Singapore Fintech Festival 2024, Money Matters’ Finance Presenter Chua Tian Tian posed these questions to Ee Chien Chua, a Fintech Executive & Angel Investor and Vanessa Ho, Co-Founder, Investments, Fintech Nation.
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