- Angels and angel networks are becoming the main source of early startup funding across emerging markets where VC is scarce.
- Checks are typically small (about USD 1,000–5,000 per angel) and syndicated to roughly USD 30,000–60,000, mostly at pre-seed/seed via SAFEs and convertible notes.
- Activity is concentrated in major hubs and sectors like fintech, but is spreading into secondary cities and industries such as agriculture and manufacturing.
- Weak exit markets, macro/political risk, and fragile network sustainability remain the biggest constraints, pointing to needs like regulatory reform and blended finance.
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The Briter–DGGF Emerging Markets Angel Study—drawn from over 200 angel networks across Africa, Asia, and Latin America—sheds new light on the evolving dynamics of early-stage investing in markets where traditional venture capital (VC) remains concentrated around a few countries and sectors,. The report reinforces that in many emerging economies, angel investors are no longer marginal actors but central pillars of startup financing, often delivering the first structured external capital for local ventures.
Where once angel capital in these regions was limited to ultra-wealthy individuals and former founders, the landscape now includes diaspora investors, senior executives, young professionals, and founders, enabled through growing networks that organise deal flow and provide education to reduce entry barriers [primary article].
Financial characteristics are striking: individual angels often contribute small amounts—USD 1,000–5,000 per deal—while networks pool to make syndicated investments of USD 30,000–60,000, generally in pre-seed or seed rounds [primary article]. The preferred legal instruments are SAFEs (76 % of networks) and convertible notes (19 %) [primary article].
Geographically, most investment volume and network presence remains in established hubs (e.g., Lagos, Nairobi, Delhi, Singapore), and in front-running sectors, but expansion is underway into secondary cities and non-tech verticals, including agriculture and manufacturing, signaling potential for diversified ecosystem growth,.
However, the report also flags critical structural challenges: lack of robust exit mechanisms for angel investors—both exits via IPOs and via strong secondary or M&A markets—long holding periods, and political and economic volatility in many markets,. Additionally, the sustainability of angel networks themselves is fragile, especially where institutional support and regulatory clarity are weak [primary article],.
Strategic implications are substantial. Investors should calibrate expectations for return horizons—often longer and less liquid. There is untapped value in targeting secondary markets and traditional sectors early, especially when angels can provide mentorship and network access. Development institutions and governments have a role to play: strengthening legal and regulatory frameworks, funding blended or catalytic instruments to bridge exit gaps, and reinforcing the institutional capacity of angel network organisations.
Open questions for future investigation include quantifying returns to angels across different geographies, understanding how network sustainability can be ensured over time, and measuring the impact of political risk mitigation on investor confidence and ecosystem development.
Supporting Notes
- The Emerging Markets Angel Study, by Briter Intelligence and DGGF, surveyed over 200 angel networks across Africa, Latin America, Southeast Asia, and South Asia,.
- Angels commonly invest via SAFEs (76 %) and convertible notes (19 %) for early-stage deals [primary article].
- Most network syndicate investments are in the USD 30,000–60,000 range; individual angels contribute USD 1,000–5,000 per deal [primary article].
- India accounts for 31 % of the mapped angel networks in the study; combined, Singapore, Brazil, Nigeria, Chile, and Mexico make up another 30 % [primary article]. Ranking of networks includes Delhi Angel Network, Lagos Angel Network, Curitiba Angels, Singapore Angel Network [primary article].
- Despite growth, challenges remain: weak exit opportunities, high risk, long return timelines, and the unstable operational models of angel networks in less mature markets [primary article],.
- Diversification trends: increasing activity in sectoral segments such as agriculture and manufacturing, and geographic expansion into secondary cities beyond major tech hubs,.