International angel investing. Can it work?

Angel investing is a rising phenomenon around the world. In the US it is a major source of capital for start-ups, and in emerging markets the deal flow has started to grow from a negligible base. Each country, or even each major city, appears to be the locus of at least one angel group. However, the concept of cross border angel investing has not yet taken off, because investors typically want to be near the companies that they invest in. However, there are several reasons why international angel investing might work:

1. Start-ups are often global on day one because of the availability of the Internet. A company that starts off in the US may find that most of its customers are coming from India. The original angel investors, therefore, are effectively investing in an international company.

2. Angels are not just investors, they’re also people who may have idiosyncratic reasons for investing abroad. For example, they may have a fondness for a particular foreign country, and investing in that country would give them a reason to travel there. After all, it’s their money, so they don’t need to justify their investment purely on the basis of ROI.

3. Angels who have already invested in a successful company in their home country may want to invest in a similar company abroad, since one might be an acquisition candidate for the other, thus increasing the probability of an early exit.

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One Response to “International angel investing. Can it work?”

  1. Digamber S. Rana says:

    Dear Sir,
    I chair an officially registered company with the aim to
    procure finance from the foreign investors and provide the fund to the entrepreneurs for the development of the projects. I am from Nepal- a South Asian country located in between India and China. I feel very happy to come across Angel Investors as a credible international foreign investors.I take the privilege to request you for the mode of your investment and hope your help will be the great asset for the development of my country.

    With regards,
    Digamber Rana

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