This guide offers insight into angel investing, focusing on challenges faced by angel networks in emerging markets. The report outlines strategies and best practices to address challenges, ecosystem engagement, and provides tools for development institutions to assess angel network engagement opportunities.

Angel investing is one of the most promising sources of financing for young, innovative, and scalable businesses. Although originating in Silicon Valley, it is now spreading around the world, but it still faces challenges such as a lack of understanding about potential for profit.

Angel networks have an important role in promoting economic growth by connecting investors with entrepreneurs. They face challenges such as limited deal flow and low awareness of angel investing opportunities. Strategies to address these challenges include diversifying revenue streams and developing regional partnerships.

Development institutions can work to support angel networks, such as by providing financial support, performing ecosystem assessments, and using assessment tools. Five key ways for development institutions to engage with angel networks are to fund, assess, educate, connect, and measure. The suggested recommendations from this report include collaborating with regional partners and angel networks, promoting ecosystem awareness around angel investing, and enhancing access to finance for entrepreneurs. The report emphasises the importance of measuring and demonstrating impact to ensure accountability and transparency.

The report touches on ESG issues such as diversity and inclusion, noting that networks with greater diversity outperform those without diversity. Angel networks can also support ESG initiatives by investing in companies that align with their values.