Angel Investors in Malaysia are defined as investors who provide financial backing, industry knowledge, as well as industry or business experience to early-stage startups or entrepreneurs. Angel Investors in Malaysia are usually found in Angel Investment Groups or Networks. They usually provide mentoring and guidance to startups. Some of the best angel investors are known to help Startups during tough times.
Angel Investors in Malaysia are plentiful. There are easily 100 angels in Malaysia that are open to funding Startups at any point in time. There are at least 1000 dormant or inactive angel investors out there, who have the money but find it hard to look for Startups. That's where we come in as an Angel Investment Network in Malaysia.
Angel Investors in Malaysia are very willing to help businesses succeed rather than just chasing for profits. This is because angels are usually people who have achieved financial freedom, and they also tend to be people that own or have owned successful businesses. Many angels in Malaysia are retired or sit on the board, and no longer work on the operational side of their business. Therefore, angel investors usually mentor young entrepreneurs as their next challenge, as part of giving back to their community and adding value to the second half of their life.
Angel Investors tend to be very founder-friendly; they usually invest in the founder and team, rather than the business itself. This is because, at such an early stage of a business, there is usually not much testing done to prove the business itself. It is then up to the founder to make changes to the business until it works.
Usually, angels do not take more than 10-20% equity when investing in a startup. This gives them the right incentive and alignment with the founder to help grow the business in the right direction, while not taking too much away from the founders as well.
Most angels at NEXEA are focused on building value for the Startups. For example, they have guided startup founders during really tough times - many of which startups almost died due to many reasons like poor cash flow management, unpredictable market conditions, unfortunate events, and unsustainable strategies. Most of the time, our angel investors/mentors help startups by introducing relevant industry players, and even opening doors to potential partners or other startups.
Our mentors in Malaysia have also created value by guiding Startups to form strong strategies that increased sales results and shared their years of experience to help startups avoid common pitfalls.
Angel Investors in Malaysia invest varying amounts as compared to Venture Capital - and recently groups of angel investors have been putting down investments as large as early stage VC investment sizes. Angel Investors in Malaysia could invest collectively anywhere between RM50k to RM2m or more, where early stage VC investments could start at RM500k to RM1m.
Angel investors in Malaysia generally invest in a larger variety of startups and are a little more involves than VCs. Their involvement usually does not touch operational matters like how to run the business, but they can offer invaluable experience and guidance in the strategies that a business puts in place. The larger the investment rounds, the less involvement there is from the investor. This is because in the later stages, Startups are more mature and stable, and in the earlier stages, startups still need some input to find the right direction.
Our Malaysian Angel Investors look for a few key things when evaluating your business. The good news is that most of these things are covered by the pitch deck. The team, product, market, traction, and so on are important factors that we take into consideration. Generally, the younger a startup is, the more we need to rely on evaluating the team because there is not much else to evaluate. The larger a startup is, the more we rely on the traction (or results) of a startup, as the results are the proof that a startup can walk the talk. Evaluating the product and market helps determine how much demand and/or how big the startup can get. Do have a look at the pitch deck guide as it explains how investors look at each piece of information.
Angel Investors in Malaysia tend to be more private about their appearance in the public. Therefore, at Nexea, we represent them on the forefront before most Startups get to meet them. We ensure that startups and investors are both ready and have a good match before the introduction. For example, we advise startups on how the investors think before we make the introduction to help Startups have a little more of an advantage when presenting their business. This helps to avoid all sorts of unwanted situations where the deal would fall apart.
If you are interested to pitch to a group of investors in Malaysia, do send us a pitch deck: Startup Fund in Malaysia.We also look at startups around Southeast Asia, and not only in Malaysia.