Why ASEAN’s angel investors are hibernating amid tech winter

Image credit: AngelCentral

It’s no secret that it’s been tough for startups to find funding from traditional VC firms recently. But what about looking to the heavens above?

Well, it turns out that angel investors are also more likely to be holding onto their cash these days.

The 2023 Angel Behavior Survey Report by AngelCentral found that 31% of the 99 Southeast Asia-based angel investors surveyed have paused their activities in the field or stopped altogether.

See also: 20 top angel investment networks in Asia

This is a significant jump from the previous year, when only 12% of respondents indicated they had paused or stopped investing.

Image credit: AngelCentral

As for why angels are keeping their checkbooks in their pockets, over 35% of respondents cited how time-consuming the practice can be, while almost 20% pointed to the many failures and write-offs they had experienced.

The survey also revealed that angel syndicates are becoming popular, with 57% of respondents saying that they have invested through one. With a syndicate, angel investors can pool their money and decrease risk.

Credits

Graphics: AngelCentral

Editing: Lorenzo Kyle Subido