By Sandhya D’Mello
Khaleej Times, Dubai, United Arab Emirates
WWR Article Summary (tl;dr) Kushal Shah, senior partner at Roland Berger’s Dubai office and a managing partner for the Middle East says, avoid angels that are going to be over interfering, high maintenance and probing in every area — especially if they don’t provide any support other than cash.
Every entrepreneur while conceptualising and chalking the road ahead for a startup sincerely wants an angel that complements the vision. But what if this angel or your association turns into a nightmare? Think!
Khaleej Times does not vouch to give you risk free advise, but can help you infer from some of the case studies and what angels feel about the budding startups too, it always helps to look at other side too, no?
The UAE offers a ripe environment for startups to attract angel investment, with private wealth expected to reach $1 trillion by 2020, according to the Boston Consulting Group (BCG). This only makes the role of angels pioneering as well as long-term from seeding to exit.
Startups can apply for funding directly to VCs and angel networks from MAGNiTT — provider of data and analytical reporting for the Mena startup ecosystem. The platform has over 500+ self registered angel Investors.
Of the startups looking to raise on MAGNiTT, about 46 per cent of startups are keen to raise funding of less than $250k which is considered as an angel round. Many of these startups are in fact pitching and applying to VCs.
Given the high level of risk involved with investing in early-stage businesses, it is important to look for either entrepreneurs with a proven-track record in delivering their set goals, or those budding entrepreneurs who have passion, vision, and are well-advised. In essence, you are investing in the entrepreneur’s ability to grow his or her idea into a viable company.