Along with Hong Kong, Singapore is a key financial hub in Asia. Because of this Singapore is also an active hub for business angels, perhaps more so than other Asian markets.
A study by the National University of Singapore stated that approximately 3.5% of adults in Singapore have invested informally in start-ups. The survey also looked at a sample of 165 local business angels, which is a fair amount for a region with a population of under 5 million.
With statistics like this it comes as no surprise that Singapore as a country has long been popular as a base for entrepreneurs and investors alike. Singapore’s links to the rest of Asia, China, and the west mean that it often acts as a gateway location into other markets. The Singapore government also supports businesses with its free trade philosophy and therefore it is an attractive location for entrepreneurs and investors alike.
Entrepreneurs in Singapore
Another key difference to some other markets is that Angel Investors in Singapore tend to be younger, with the 25-34 age demographic being the majority for angel investors, compared to most countries - where business angels tend to be older.
Typically, business angels in Singapore will make financial investments across all business sectors, but they do on average have a preference. One key difference to some other markets outside of Singapore is that Singaporean business angels tend to invest more often in the retail and hospitality industries. This means if you’re an entrepreneur based in Singapore with a business idea or start-up which focuses on these two popular markets then you may have a better chance of finding the investment you’re looking for. The reason for this is that there will be more competition between business angels to invest in this sector, if a good idea or sound business plan is identified.
Business Angel Groups in Singapore
Business angel groups are more common in Singapore than neighbouring countries, and various angel investor groups have formed in Singapore during recent years. The government in Singapore also has programs that allow them to co-invest in start-ups, along with various tax incentives for angel investors.
These investment groups can be great for entrepreneurs who need money for their business but do not necessarily need a business partner. These Singapore investment groups can help fund a business but leave the day-to-day running of the business to the entrepreneur.
For those entrepreneurs who not only are looking for some investment in the business but also some kind of business support either through mentorship or to leverage contacts and experience then another good option is to connect with just one or two angel investors who are interested in this kind of additional support. This is more common than you might imagine, and this type of investor can be a good fit for those entrepreneurs in Singapore who would welcome this outside help.
How the Angel Investment Network can Help
The Singapore branch of the Angel Investment Network seeks to connect angel investors with entrepreneurs based in Singapore and around the world.
If you are looking to invest in a business in Singapore, you can find out more about some of the business proposals available by joining our network. Investors can join for free.
Entrepreneurs in Singapore that are looking for investment in their business or start up can join the Angel Investor Network. Pitch your business online and help it attract investment from business angels based in Singapore and from wider afield around the entire globe.