The MBAN-Cradle survey had profiled 20 MBAN members, finding that their investments were typically made with a lifespan of five years (click infographic on the right to enlarge).
The angels have made investments in 85 companies, or an average of five investments per angel, with RM1.7 million as the median angel investment. [RM1 = US$0.24]
One interesting data point was the fact that up to 58% of companies invested in and 70% of investment funds met or exceeded the angel investor goals in 2015.
“Considering that our ecosystem is still forming, that high success rate was a surprise to me,” said Sivapalan (pic above).
On average, each angel had a minimum individual net worth of RM3 million or a combined annual household income ranging from RM180,000 to RM42 million.
While angels are typically known to be highly private individuals, rarely sharing the amount or the companies in which they’ve invested, the survey revealed that other general traits shared by angels is their hands-on attitude with the companies that they are minority shareholders in.
Their profile showed high levels of education, with 100% being college graduates and 39% holding post-graduate degrees.
Other investment pinpoints included grouses about ineffective senior management, numerous operational delays, and distribution issues within the startup.
“The people and execution are the main issues here – it is interesting that technology is almost never an issue when it comes to angel investments,” said Sivapalan.
Recommendations to continue improving the Malaysian business angel community included educating key stakeholders on business angel investing, and developing success stories to encourage the growth of the industry.
Government support also remains a key component to developing ‘Silicon Valley Malaysia,’ as Sivapalan phrased it, with the expansion of tax incentives for investing in companies being one specific area MBAN is looking to lobby the Government for.
Hoping to capture more granular data moving forward, MBAN will definitely be running another survey in the future, said Sivapalan.
“This is only the beginning of angel research. There needs to be a lot more moving forward,” he added.
Source from Digital News Asia
Article was reproduced by The Malay Mail Online