How do I acquire funding for my business? This question keeps entrepreneurs in Kenya awake. I bet it takes up so much of your attention you don’t have time to make day-to-day running efficient or draw up plans for the future of your business.
Beside your bank and SACCO, there are other avenues to raise money. We previously looked at Venture Capital (VC) and went a further mile to list VC funds in Kenya. Today, HerBusiness explains angel investment in Kenya.
Who is an Angel Investor?
An Angel investor is literally an angel, to an entrepreneur at least. Typically, this individual is that rich aunt or uncle who gives you money to start a business. It’s nothing new at all. The only change that has come along is that angel investors have introduced more formality in how they do things. The disadvantage brought about by this is that the rich aunt or uncle would now expect stake in your business and returns. The good thing is that those of us without wealthy relatives can now access funding by an angel investor.
Like the Venture Capitalist, an Angel Investor is also concern about basics that are product, market and the team. But because they have little or less stake in your business, they are less rigid about who to finance and who not to finance. An Angel investor is a mentor who gives you money to do business. The great thing about them is that they even finance ideas.
Angel Investors in Kenya
Information is not readily available on how much angel investment in Kenya gives to businesses. We have a lot of gaps in data, as a country. That is what happens in a country without little investment and appreciation of research.
Anyway, like noted before, it is common for us to go for funding from our relatives. This is how families with a history of entrepreneurship or business management stay ahead in business. Family means the all the people who attend a family gathering. For those without this advantage, they can now reach out to groups or listings of Angel Investors. One such resource is AngelList. You can start checking out these angel investors in Kenya today.