PreAngel's vision is to make angel investing universal, breaking the stereotype that it's a pursuit reserved for the wealthy. Our goal is to populate every community with investors who share our philosophy—that empowerment of innovators doesn't require vast wealth. We aim to inspire individuals everywhere to support entrepreneurs, fostering widespread innovation and impact.
How PreAngel started
by Leo Wang on Jan 1, 2011
In the dance of angel investing, where logic often leads, my odyssey has been guided by a deeper rhythm—the pulse of conviction and the melody of humanity's relentless spirit. PreAngel is not just a fund; it is a creed, a celebration of the underdog's grit and the unfaltering belief in their potential to reshape the world.
My path from a child of in rural area to a visionary in the mobile internet epoch has been shaped by an inherited tenacity. PreAngel was born from this legacy—a vow to the visionaries at the grassroots, a beacon for the undaunted.
Amidst a landscape where success is rare and failure the norm, it's the impact of each success, the significance of each small investment, and the acknowledgment of those empowered that define the spirit of angel investment.
As China's entrepreneurial field burgeons, I stand as both a sentinel and a sower, cultivating a more inclusive ground for success through mentorship and advocacy, seeking not to alter the scale of change, but to sustain the momentum of belief.
My reflections are not merely etched in profit but in the transformation of lives, a chorus of victories not mine alone but shared with the dreamers whose beats match the rhythm of perseverance that guides us all.
Democratizing Angel Investing
-- A Mission to Empower Innovation and Startups
by Leo Wang on Jan 1, 2017
In today's fast-paced world of technology and innovation, the role of startups is more critical than ever. These burgeoning enterprises are the crucibles where new ideas are tested, refined, and sometimes, revolutionized. However, the path to innovation is not without its challenges, particularly in the early stages of a startup's journey. This is where the mission of democratizing angel investing, as championed by PreAngel Fund, becomes pivotal.
The Necessity of Failure in Innovation
Innovation is a process that inherently involves a significant degree of trial and error. The reality is that for every successful startup, there are countless others that don't make it. Yet, it's these failures that pave the way for new breakthroughs. Each failed attempt is a learning opportunity, contributing to the vast pool of knowledge and experience that eventually leads to successful innovation.
The Gap in Early-Stage Funding
While Venture Capitalists (VCs) and Private Equity (PE) firms play a crucial role in scaling businesses, they typically step in only after a startup has shown some proof of concept. This approach leaves a significant funding gap in the earliest stages of a startup. Angel investors are often the only ones willing to take the risk of funding startups at their inception. They are the unsung heroes who fuel the dreams of entrepreneurs when their ideas are just taking shape.
Addressing the Imbalance
Currently, there is a stark imbalance between the number of startups seeking funds and the available angel investors. To truly foster a thriving startup ecosystem, we need to increase the number of angel investors by a hundredfold. This increase is essential to provide sufficient opportunities for a diverse range of startups to take root and grow.
Engaging Amateur Angel Investors
Given the impracticality of dramatically increasing the number of professional angel investors, the solution lies in engaging amateur investors in the innovation process. These individuals, often outside the traditional investment sphere, can bring fresh perspectives and new capital to the startup world.
Overcoming Thresholds for Amateur Investors
PreAngel Fund has shown that it's possible to start an angel investment firm with raised funds, acting as a beacon for amateur investors. One of the key insights from PreAngel is that startups don't always need large sums of money initially. In fact, limited funds can sometimes spur more creative and innovative solutions. This approach lowers the entry barrier for amateurs who might not have substantial funds but possess valuable industry experience and skills.
Manifesto for a New Era of Angel Investing
In an ideal world, any founder should be able to secure angel funds from their own community - family, friends, colleagues, and local investors. Anyone with more than $15,000 could be a legitimate angel investor, and those with industry experience or specific know-how could become invaluable mentors to founders. This approach would create a more inclusive and dynamic startup ecosystem, where a broader range of ideas could be nurtured and brought to fruition.
Democratizing angel investing is not just about increasing the number of investors; it's about cultivating a culture where innovation is supported at its roots. By lowering the barriers to entry for angel investors and embracing the contributions of amateurs, we can create a more diverse, resilient, and innovative startup landscape. The mission of PreAngel Fund is a testament to this belief, demonstrating that with the right approach, anyone can contribute to the exciting world of startups and help shape the future of innovation.