Media Release: Angel Investors Slowdown in Response To Economic Uncertainty

Singapore, 8 September 2023 -- AngelCentral, a popular network of angel investors has just released its second annual Angel Investor Behavioural Survey Report for 2023. This year's report surveyed 99 ASEAN based angel investors on an array of questions related to their startup investments. The goal is to understand better how angel investing develops in our region as an asset class and how ASEAN angels make their investment decisions.

"We conducted this survey in 2Q 2023, this is after dismal returns in the public markets back in 2022 where many growth stocks suffered a massive 50-90% valuation drop in response to rising interest rates and inflation. When the cost of money is at 5+%, investors will pull back on risky assets. As such, it is quite expected that even at early stage angel investing, we are seeing a sizable drop in demand. ", shared Huang Shao-Ning, Chief Angel at AngelCentral.

"However, it is gratifying to see that the majority of angels are still investing with discipline through this downturn to build their angel investing portfolio and that some are even increasing their budget. It will very likely be a good move for savvy angel investors to take advantage of lower valuations and less competition to fund some good startups over the next 1-2 years."

"Syndication has frequently been called the greatest new tool for angels. This is primarily because it allows angels to invest in smaller bite sizes and to tap on fellow angel's strengths and knowhow. Furthermore, syndicates, by virtue of pooled size, also have better bargaining power with the startups." Huang added.