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An Angel’s First Step to Avoiding Risk

Every entrepreneur around the globe is thinking about where they can get funding and every angel investor is wondering if the ventures they see will succeed.

Angel investing has come into the spotlight with TV shows like Dragon’s Den and Shark Tank bringing both the pressures and very real risks of what it means to be an angel to life for viewers around the world. Our investors in MENA are faced with the same dilemmas on how to maximize their chances for success and mitigate risk.

At WOMENA, we believe dealflow, diversification and diligence are the core principals for healthy angel investing. We also understand that making sure you have a broad spectrum of potential deals is both time consuming and requires some serious knowledge. Our aim is to support our angels by sourcing and conducting due diligence to screen and provide a varied pool of suitable start-up projects.

Keeping investments diverse and staying on plan is key – the majority of all start-ups fail so an angel should never have all their eggs in one basket. While returns on angel investments vary hugely, our policy is to work to provide start-up options with strong potential for co-investment in the MENA market.

It helps to remember that entrepreneurs are caught up in the excitement. They are in the honeymoon phase and will sweet-talk you if you let them. We work to help our angels avoid unnecessary risk by sharing industry knowledge, contacts, personalized access to a pool of pre-screened entrepreneurs and due diligence so investors can fund the right opportunities in the market.

How WOMENA can help you get started

While we work to provide investors with the best deal flow, a network of co-investors sharing knowledge, and take on due diligence and provide support throughout the deal lifecycle, angel investor should consider what they want to invest in, ensure they have enough capital, and cast a wide but strategic net to avoid unnecessary risk.

Many angels underestimate the value of angel groups. It is not just about launching with an exciting one-time investment. An angel is on board with all the companies they invest in for the medium if not the long term.

Working with WOMENA means that our investors have access to pre-screened up-and-coming opportunities that have the fundamentals to take off in the region. We work to pair angels with companies they can support to mitigate risk and ensure well-matched diversity in their portfolios. We make sure our angels know they are giving more than simply a lump sum but that to succeed they need to provide guidance and contacts to build a long-term relationship.

We also are convinced that believing in the company is key but it needs to be based on domain knowledge and ultimately the right amount of due diligence so the facts are all there. Angels can best support start-ups by coming in with smart money, commitment to an ongoing relationship with the entrepreneur and with the readiness to give and share knowledge. They can best mitigate risk with a strong deal flow, a diversified portfolio, and a strong community to invest with.