Group of young asian creative business brainstorm meeting presentation, discussing roadmap to product launch, planning, strategy new startup project in office.

SINGAPORE: Despite the high failure rate in the startup ecosystem, many angel investors remain optimistic. According to AngelCentral’s latest report, four in ten angel investors in Southeast Asia have reported positive gains even with high rates of startup failure and limited liquidity.

AngelCentral’s report, which surveyed 70 angel investors, revealed that while 41.7% of investors have reported positive returns on their investments, 22% have experienced losses, and 36.1% do not track their portfolio gains.

According to the Singapore Business Review, many angel investors manage startup risks by diversifying their portfolios.

According to the report, seven in ten investors are investing across three to four asset classes to protect their investments from potential losses that come with high failure startup rates.

In addition, 61% of angel investors are now investing by syndication.

The report also found that 40% of angel investors had lowered their investment amounts to between $13,000 and $26,000, a decrease from the previous year when 41% invested between $26,000 and $65,000.

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Even with the funding slowdown in 2022 and 2023, most angel investors remain hopeful about the future of the startup ecosystem. According to the report, eight in ten believe the sector will grow over the next five to ten years.

A growing number of new angel investors are also entering the market, with 30.6% having under two years of experience. Despite this, the overall demographic has seen little shift, as more than 80% are still male business owners or corporate owners in their 40s and 50s. /TISG

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