FiBAN Monthly: Angel investor means Human + Capital
October 10, 2022
We’ve experienced some wonderful years with ease in funding. Yes, you read right. Valuations have been extraordinarily high in the wake of a strong economic situation. The landscape has truly changed during the last few years. Today our investor network is part of a growing and rapidly evolving ecosystem of funding sources in various sizes and terms. There is no shortage of means if you have a robust idea.
Annual investments by our members’ private money are reportedly over 50 million euros. Prescreening and vetted, tested, prepped for bigger rounds and growth, these companies also attract bigger players. Angel investors are not always alone looking into pre-seed and seed companies. There are some VCs who also like to operate in early-stage companies. They can be an asset when angels need more financial firepower and risk-takers. The median size of an angel round is still rather modest and an additional source of investment can be needed. The problem for a founder is how to negotiate these different funding strategies equally so that no one gets the short end of the stick.
The funding landscape is also much more scattered than before. There are now more sources for deal flow than ever before. Many new operators have founded their own pitching competitions and deal flow sources not to mention the number of proposals coming through purely as email spam.
This is a challenge for angel investors, how to bring out your human and capital value to attract interesting companies. FiBAN does a wonderful job enhancing members’ capabilities, educating and introducing partners, and organizing events to meet and get acquainted with. A lot is heard along the grapevine, and it is therefore beneficial to stand out and tell about yourself on our channels. FiBAN is a wonderful platform to give and gain as it is stated in our code of conduct.
The appetite of next-tier investors best tests the value of angel investing. FiBAN has built the foundation on early-stage investing and has proven the model working. Angel investors are usually expecting to put their skin in the game to make the most interesting companies grow. Experience is a valuable asset when doing something for the first time. Building a network of trusted allies either formally as a board member or advisory board or as an angel investor who can be your sounding board as they have been down the same path can be the deal of a lifetime for a founder.
I’m pleased to see how Pitch Finland has regained its place for networking. Let’s meet, form great, valuable syndicates together and connect also with our great partners and angel-friendly VCs for the benefit of us all.
Chair of the Board, FiBAN
FiBAN Monthly is a blog series discussing current topics among FiBAN and angel investing. A new post is shared each month, alternating between FiBAN Chair of the Board Annukka Mickelsson and Managing Director Amel Gaily. In case you missed the letter from September, you can read it here.