Global VC fundingreached $143.9 billionin the first quarter of 2022 down 19% from the previous quarter.
With the current dip instartupvaluation, they find it risky to provide seed funding to emerging companies.
The big advantage of angel investments is that financing is much less risky than debt financing.
Unlike a loan, invested capital doest have to be paid back in the event of business failure.
And most angel investors understand business, and therefore take a long-term view.
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Were not calling ourselves a fund and that really changes the dynamic in the way we invest.
This doesnt mean, however, thatfoundersshould welcome every and any angelinvestor.
The selection approach should always be made with caution and skepticism.
Theres no preemptive way of doing it, you have to see if an amicable exit is possible.
Story byIoanna Lykiardopoulou
Ioanna is a writer at TNW.
With a background in the humanities, she has a soft spot for social impact-enabling technologies.
