While individual angels are incredibly important, few prospective angels have the time, know-how or financial resources to participate in multiple investments acting alone. As a result, angel networks have emerged as a method for providing an introductory service to potential deals, connecting like-minded individuals to share the workload, accessing the collective wisdom of others and syndication of deals. As such angel networks often overcome the many challenges associated with solo investing and investing in risky environments, such as emerging markets like the Caribbean.
The Regional Angel Investor Network (RAIN) aims to improve access to investment opportunities throughout the Caribbean, for angel investors. It is focused on connecting investors with start-up, early-stage and growth companies seeking finance; increasing Caribbean deal flow. Investors that are members of an Angel Group or network, are a syndicate of solo investors, or a legally registered institution are also able to apply for a LINK-Caribbean Co-investment grant.
What is Angel Investing?
Angel Investing is the practice of High Net Worth Individuals (HNWIs) investing their personal time, money and expertise (including sharing their professional networks) into early stage businesses in which they have no family connection, with the aim of getting these businesses to grow and realizing a financial return on their investment over the long-term
Angel investing is a form of private equity investing that often takes place in the early stages of a company’s development. However it can also occur in more mature companies.
Angel Investors also invest their intellectual capital into a business while often times providing access to influential networks. These are core components of angel investing and can significantly improve a company’s probability of success. A business angel typically aims to take a more active role in the business than a traditional passive private investor, hoping to use his/her knowledge and experience, to help the business succeed. In exchange for their financial and intellectual capital, angels often require equity in the company and are therefore committed to the business and its success. Angel Investors will also want an exit to realize a return on their investment and will generally shy away from making an investment if an exit opportunity is seen as highly unlikely.
The motivation of angel investors is another thing that separates them from other type of private equity investors such as Venture Capitalists and PE firms. Angels are more interested than just a financial return; they want to get involved with innovative companies, they enjoy the process of building companies, and they have a desire to support entrepreneurs. Angels are also looking to give back to local economies by investing in young people and companies, where they believe they can add value by passing on their own experience and expertise.
It is critical for entrepreneurs to grasp that angel investors are looking to invest in companies that are beyond the idea stage, they are looking for evidence of customer engagement. Angels will look more kindly on companies that already have, or are close to having actual revenues, and likely to look les kindly on companies that are only looking to fund a prototype. As such, while there are angels who will fund companies at the very early stages of development, most angels want companies to already or close to making actual revenue before they consider making an investment.
Find out more about angel investing by downloading infoDev’s angel investor guide from the link below
- Co-investment grants offer supplementary funding to enterprises that are able to raise investment from business angels and other early-stage investors.
- Co-investment grants provide additional funding – beyond what investors are able to provide – to help early-stage enterprises develop and grow.
- Co-Investment Grants are available to entrepreneurs that have secured private investment and will require a joint application by the entrepreneur and investor.
- The grant will provide a match of up to 50% to a maximum of $100,000 USD of capital investment from angels or other eligible private investors.
- The grant disbursement will occur only after the investor has transferred funds to the enterprise.
- A minimum qualifying investment of USD $50,000 will be required by investors with a minimum grant award of USD $25,000.
Please download the CI Grant overview and eligibility criteria below. If your company meets the criteria take a look at the ‘How to Guide’ before applying for a grant.Download the LINK CI Grant How To Guide View How-To Guide
Alpha Angels is primarily based in Montego Bay, they encourage the growth of early-stage ventures in Jamaica and the Caribbean through seed-stage investments.
First Angels JA
FAJ is focused on potential investments in digital applications, digital media, the creative industries and other innovative businesses.
Based in Barbados, Trident Angels is a network of successful business leaders interested in investing their money and experience into ventures that have the potential to grow and create value.