By Fabiola Duro, INNVEST Founder & CEO
It’s an extraordinary time for innovation. Technological change and industry disruption seem to be accelerating. And digital information networks are linking individuals, organizations, and nations as never before. In the 21st century, however, it is not invention but innovation that counts. Even from a global perspective, the business angel market is changing. Business angels are increasingly investing as part of organized and managed angel groups alongside other angels rather than on their own. But, first, we have to understand what is angel Investing.
There is no universal definition of angel investing, but, generally is understood as the practice of high-net-worth individuals investing their own time and money in new businesses with the goal of profiting from their long-term growth. Such investments are characterized by very high levels of risk as most companies are in the earliest stages and will likely fail. Angel investors are different from venture capitalists (VCs) in that VCs invest other people’s money. Motivations are another important distinction between the two; angels are typically interested in more than just receiving a financial return. Personal interest, the desire to give back, and the thrill of being involved with an innovative company are just a few of the reasons why people decide to become angel investors.
Typically, angels are high-net-worth individuals with considerable business experience. Of course, “high-net-worth” is a relative term that varies from country to country. Most of the countries, even in Albania, however, do not yet have the criteria “accredited investor” status as defined by law for angel investors. The majority of high-net-worth individuals in developing countries such as Albania, tend to invest locally and they tend to find opportunities and make investment decisions based on personal connections.
“Killing 2 birds with one stone! They are smart entrepreneurs, or as we call them Startups. Knowing the importance of digitalization and tech are trying to become angel investors, under the scope of investors”- Baybars Altuntas, Chair of World Business Angel Investment Forum (INNVEST Forum 2020 Speech)
Some of these investors, however, test the waters of financing high-growth start-up companies that are not in the traditional sectors (e-solutions, digitals transformations solutions and processes, fintech’s, ED-techs, MedTech’s, etc, by contributing to the communities of new entrepreneurs and their support structures that make up new start-up communities.
“The world is turning to online. Everyone is turning to digital payments, with small difficulties but great opportunities”- Linda Shomo, Founder & CEO of Easy Pay Albania (INNVEST Forum 2020 Speech)
Through the last 5 years of experience in Albania and SEE countries, these networks, matching opportunities, and meet-ups aim to strengthen cooperation among different levels and exchange information, advice, and referrals, via the informational process, to assist in attaining main goals.
"There are 4 pillars offered by angel investors: basic knowledge; mentoring, networking and finance"- Besnik Leskaj, Board Member at Abkons Group. (INNVEST Forum 2020 Speech)
Investment opportunities are committed to collaborating nationally, regionally, and globally to empower the economic development of the world by fostering innovative financial instruments for startups, scaleups, innovators, entrepreneurs, MSMEs, and SMEs and to promoting gender equality and women’s participation in all sectors of the world economy.
“An important part of everyone, every entrepreneur, is to take successfully risks” -Jonian Antoni, CEO of C21 Albania & Kosovo (INNVEST Forum 2020 Speech)
In Albania, there are private entities that combine innovative research while bringing investors and new business ideas together for pressing economic challenges. INNVEST is one of them, to steward the ecosystem innovation journey by inviting national, regional, and global efforts to ease access to finance, promote financial inclusion, and create more jobs and social justice to impact positively the ecosystem. Innovation Investment Fund (INNVEST) is a private entity that combines innovative research while bringing investors and new business ideas together for pressing economic challenges in our country with a long-term goal for sustainable growth in our business community and shape the ecosystem. INNVEST fosters innovative solutions that empower entrepreneurs & investors to forge a more dynamic economy across Albania & the Western Balkans 6 through mentoring, training, support, consultancy, and mediation. INNVEST has launched in Albania the “Innovation Management Academy in Albania -IMAA” in cooperation with ICT Hub Serbia and supported by EU for Innovation. IMAA is also supported by EBRD to build capacity and support the local team working on IMAA in discovering the market needs when it comes to education and training activities and designing tailor-made programs that would fit the specific requirements of each target group.
“Innovation and technology are highlighting more than ever the important role of startups, investors, and innovators in this ecosystem. We are here to find success stories”– Fabiola Duro, INNVEST Founder & CEO
Also, a major role in the ecosystem can be led by other important actors such are; WB6 CIF- as a joint initiative of chambers of commerce and industry from WB6 countries, with the aim to provide a joint voice to the business community in the region and to facilitate inter-business contacts and promote the region as one investment destination; National Chamber of Commerce’s, Investments governmental and not governmental agencies; Global investing initiatives and opportunities such are international business angel networks, other important innovation, and tech events; such are Wolves Summit, Web summit, WBAIF, etc.
In Albania, even the investment opportunities by angel investors network or VC’s are still fragile and not well defined in the legal perspectives, it is rewarding to see that governments around the world have understood the importance of angel investment for boosting their economies.
“For new problems, new solutions must be considered. Here the importance of Innovation "- Anuela Ristani, Deputy Mayor at Municipality of Tirana (INNVEST Forum 2020 Speech).
Since it’s an extraordinary time for innovation, the technological rapid changes, the digital information networks are linking individuals, organizations, and nations as never before, it is the moment that we all have to understand and start a long journey ahead for our country and beyond through finding new innovative solutions that empower entrepreneurs and investors to forge a more dynamic economy across Albania and the SEE countries through mentoring, training, support, consultancy, mediation and investing for impact on our near future.
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