The digitisation of Angel Networks

The growing use of technology by angel networks is making a real impact on how investors engage, research and commit to investment opportunities. In simple terms, the adoption of digital platforms and tools is making angel networks more efficient, accessible, and transparent than ever before.

It’s evident that technology holds immense potential to enhance and foster opportunities within the angel investor community. This shift towards digital is making angel investing more inclusive, opening doors for a wider range of people who want to get involved in the world of entrepreneurship.

Here at Delio, we see first hand how deal-sharing platforms strengthen connections across the ecosystem. This results in greater transparency, expanded deal capacity, and improved connectivity, all contributing to a more vibrant investment environment.

Improving deal distribution

Coordinating a network or syndicate has historically been a complex endeavour, involving sifting through multiple deals, scrutinising business plans, conducting due diligence, and ongoing investment monitoring. 

Online platforms have revolutionised this process by streamlining procedures and optimising distribution channels. In an era characterised by instant gratification, it’s unsurprising that angel networks are increasingly exploring digital avenues to complement their existing models and provide robust support.

Democratisation of deal flow

The speed and accessibility offered by digital platforms is also helping to democratise angel investing. Busy professionals, who previously struggled to find the time to attend in-person meetings or investment pitches, can now participate far more actively in this exciting space. 

Traditionally, start up investments were the domain of venture capitalists and well-connected angel investors. Now, online platforms empower individual investors and angel groups to engage with opportunities that were previously inaccessible. As a result, entrepreneurs and investors that are still building their networks can tap into a wealth of opportunities far more easily.

Moreover, online platforms grant investors access to a diverse range of opportunities, transcending geographic or sector limitations. This is crucial since often the most relevant investments might lie outside an investor’s geographical location or industry focus. By broadening their horizons beyond regional boundaries, angel investors greatly enhance their chances of encountering a rich variety of prospects.

Entrepreneurial engagement

Deal-sharing platforms can also double as acquisition channels for angel networks, stimulating revenue growth and boosting liquidity within the ecosystem. They facilitate more efficient back-office management, aiding processes such as pre-deal sign-off and document management during the execution of a deal.

Building a strong network

For angel investors with substantial entrepreneurial acumen and the time to share this knowledge, local groups are an invaluable resource. The collaborative nature of these networks, coupled with the diverse experience and expertise contained within them, can result in more informed decision-making by their members. 

This setup allows them to engage directly with founders, engage in in-depth discussions, negotiate terms, and conduct thorough due diligence. Harmonising an online platform with the offline model is a strategically sound move, enabling angel investors to harness the benefits of these local groups more effectively. 

Focus on the right areas

Using a digital platform empowers angel networks to concentrate on excelling in their core strengths. By streamlining administrative tasks such as deal management, due diligence, and documentation, these platforms free up valuable time and resources. 

As explained by Delio client Bolt Angels, this enables angel networks to channel their expertise and energies into what they do best

“We decided that we didn’t want to spend our time on running the regulated side of the business and the tech that goes alongside it. We want to focus on where the deals are, who the great founders are, and how we support them in growing their businesses”, says David Bell, the network’s managing director.  

In conclusion

Digital platforms empower investors to optimise their time and explore a wider range of investment opportunities. They will undoubtedly assume a progressively pivotal role in angel investing as they continue to gain traction and popularity.

See for yourself how Delio Core can help unlock your angel network’s private markets potential by booking a demo.