Everyone has taken a beating. From large conglomerates to fledgling startups, all have been forced to review their numbers for the year, uncertain if their business will outlive the coronavirus disease 2019 (COVID-19) pandemic. Availability of financial runway or healthy cash flow is some of the business basics that can sustain an enterprise giving it the ability to negotiate or hedge against risk.
These have taken a big hit, bearing the brunt of depressed economies and reduced purchasing power. There are those businesses that have managed to lock-in financing or secure healthy business contracts before the pandemic hit but there exist many more who were in various stages of deal-making, hopeful to close on funding or business.
Some of these have since fallen through and others put on ice to de-risk them awaiting market correction.
Opportunities for angel investors in Africa
It is in times like this that great opportunities present themselves to angel investors.
Many businesses, and especially startups, will be started or pivoted to address market segments that have either been created or are morphing. There has been a steady rise in the coming together, training, and knowledge sharing by angel investors across Africa with many deals already done by different formalized cohorts.
The current situation is pushing more to explore avenues through which they can invest individually or in syndicates.
If you are not a seasoned investor, it is best to explore opportunities in a syndicate, where the collective gut may sensitize you to both good and bad bets where you may be out of your depth or biased.
How to become an angel investor in Africa
The African Business Angel Network has chapters that you can sign up to and get started on the journey as an angel investor investing in African startups. There are many other investment and market research organizations that put out daily feelers with analysts compiling fact-sheets on start-ups and entire verticals.
Future Africa, led by Nigerian entrepreneur Iyinoluwa Aboyeji of Andela and Flutterwave fame, a platform that provides capital, coaching, and community, recently took a deliberate fork on the traditional venture capital road by launching an exclusive community of co-investors who benefit from the deal pipeline curated by Iyin and his team that has so far put money into 19 companies. Reportedly over 200 potential investors signed up in 24 hours of its launch and the first deal put in front of members was committed within 3 days.
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Briter Bridges, well known for their #InnovationMaps, a visual series aimed at showcasing sector-focused technology ecosystems across emerging markets have also recently made some of their data opensource.
Armed with information and ready capital, now is the time to make your move and stake a piece of the future.Share this via: