Startup

A Comprehensive List Of Angel Investors That Fund South African Start-Ups

To get your start-up off the ground you’ll need money. An alternative is to ask an angel investor for that initial capital injection to give your start-up a better chance at success.

An angel investor is usually a high net-worth individual or group that provides capital to start-ups. They are referred to as angels because they are willing to invest their personal funds into a struggling higher risk business, when no one else will. Just like funds and incubators, some angel investors will focus on a specific industries.

What is an angel investor?

“Angel investors got their name 100 years ago in New York City when struggling playwrights – with limited financial means – had theatrical productions funded by a wealthy and visionary individual usually at the last minute,” explains David Newton, professor of entrepreneurial finance and head of the entrepreneurship programme, Westmont College, California.

He says that this generosity was associated to angels floating down from heaven with money so the show could go on. However, these angels were astute investors with keen eyes for investments that would achieve high profits. Angels fund a business to get in on the ground floor of an opportunity for financial gain.

The difference between an angel investor and a venture capitalist

Venture capital funding usually comes from a firm with people selected to help your business develop. Venture capital firms are comprised of professional investors. The capital is generated from a variety of sources such as corporations and individuals, private and public pension funds, and foundations.

A venture capital firm is looking for businesses with high growth potential. They will then buy shares and have a say in the future of a business, in exchange they expect a high return on investment.

The pros and cons of choosing an angel investor

The funding an angel investor can bring to the table could make all the difference in getting your start-up off the ground, but there are a few trade-offs you need to be aware off:

The pros

  • Angel investors are usually entrepreneurs themselves, who understand the level of risk involved in investing with you, and so they won’t require you to jump through as many hoops as with a typical business loan.
  • An angel investor will offer you capital in exchange for an ownership stake, which means you won’t have to repay their investment.
  • Angel investors bring years of expertise and already understand the challenges your business will need to overcome before reaching success.

The cons

  • The cons of an angel investor taking on high risk start-ups is they usually have high expectations. It isn’t unusual for an angel investor to expect a rate of return 10 times their original investment within the first 5-7 years.
  • Offering up a portion of ownership to the angel investor can limit your start-up’s capability of realising a profit, if you don’t carefully assess the terms.
  • The angel will want to take an active part in making decisions, or they’ll want you to explain the reasons behind some of your decisions.

Here is our comprehensive list of 43 angel investors interested in South African start-ups:

  1. Ernst Hertzog
  2. Brett Mason
  3. Avi Eyal
  4. Joel Gascoigne
  5. Brett Dawson
  6. Michael Leeman
  7. Lawrence T Levine
  8. Saul Klein
  9. Mohamed Nanabhay
  10. Sean Emery
  11. Vinny Lingham
  12. Bukola Jejeloye
  13. Kresten Buch
  14. Abu Cassim
  15. Pardon Makumbe
  16. Charles Lorenceau
  17. Justin Stanford
  18. Zachariah George
  19. Daniel Guasco
  20. Craig Raw
  21. Rob Stokes
  22. Mark Levitt
  23. Alvin Singh
  24. Dean Cannell
  25. Llew Claasen
  26. Ari Lustbader
  27. Tommy Chia
  28. Mark Pretorius
  29. Henk Kleynhans
  30. Michael Jordaan
  31. Dotun Olowoporoku
  32. Abrar Ahmad
  33. Michael Greve
  34. Wayne Gosling
  35. Jordan Wainer
  36. Paul Brown
  37. Dan Stephenson
  38. Malcolm Gray
  39. Richard Rose
  40. Mark Forrester
  41. Shlomi Podgaetz
  42. Jesse Hemson-Struthers
  43. Cassian Coquelle and Hendrik du Preez and Andre Bottger
  44. Angel Investor Networks

Source: Entrepreneur Magazine

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