Business angels are wealthy, private investors, who provide capital for young companies at the start-up phase or during a level of expansion. Unlike venture capitalists - whose money is often pooled by investment firms - business angels usually invest their own funds.
Wealth in Hong Kong and China has grown considerably over the last few decades and the business opportunities for both entrepreneurs and investors alike have grown substantially. Outside of Hong Kong, because of this growth many individuals are looking to these markets to either start businesses in or to find start-ups to fund.
How Hong Kong Entrepreneurs Can Benefit from Business Angels
Business angels are not only valuable for their financial contributions, but also for offering their expertise and in many cases, contacts to their invested company. Many business angels have had success as an entrepreneur or in executive positions at well-established companies or corporations.
If you’re an entrepreneur that lacks business experience, then a business angel that is willing to mentor or provide business advice is very valuable. For those individuals that are based overseas and are looking to start up a business in Hong Kong but don’t have the local knowledge, then finding a business angel based in Hong Kong can be a good way to get a foothold in the region. A business angel that is experienced in the Hong Kong marketplace can provide a great deal if insight into how business works in the region.
The primary goal for business angels involves seeing their invested companies succeed and doing what it takes to ensure that success. Instead of seeking ownership in the company, many business angels are more concerned with using their expertise to help make and manage day-to-day business decisions that can help with the success of the businesses that they are invested in.
While some business angels act as mentors and choose to invest in start-ups either in their chosen field, or based on new technologies in that field, many are simply looking for innovative, viable business ideas. So, entrepreneurs should understand that not all business angels want a hands-on role in a company. Some angel investors simply want to invest their money and let the business owner themselves handle the day-to-day running of the company. Ultimately, this can be a benefit to certain types of entrepreneurs who need some additional investment in their business but do not want any outside involvement in the day to day running of the business.
Key Sectors in Hong Kong That Attract Investors
If you’re an entrepreneur in Hong Kong looking for an angel investor to help finance your business you may find that it is easier if your business is based in one of the key business sectors that are popular in Hong Kong. These are traditionally, financial services, professional services, logistics and tourism.
That is not to say if you’re business operates outside of these areas that it won’t be successful. Many business angels are looking for start-ups that offer something new and different in the marketplace and will specifically look for investment opportunities that meet this kind of criteria.
Business angels work with entrepreneurs and companies in various industries - from the Web to real estate to the arts - and usually do not always have a prior history with the company that they are investing in.
How the Angel Investment Network Can Help
The Angel Investment Network bridges the gap between business angels and entrepreneurs with a network of sites in over 30 countries. Members can get in touch with business angels who are looking to connect with Hong Kong entrepreneurs in a wide range of industries.
If you’re an entrepreneur based in Hong Kong and China or anywhere else in the world, then you can search the Angel Investment Network to find business angels looking to invest their money in projects, start-ups and established businesses.