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Aussie investors turn to angel investing

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  • January 18 2022
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ROOT

Aussie investors turn to angel investing

By
January 18 2022

As the price of crypto crashes, angel investing could rise from the ashes.

Aussie investors turn to angel investing

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By
  • January 18 2022
  • Share

As the price of crypto crashes, angel investing could rise from the ashes.

Aussie investors turn to angel investing

Technology lowered the barriers for everyday investors to enter retail trading, could angel investing be next?

Speaking to nestegg, UNSW program and portfolio manager Beste Onay emphasised the importance of understanding the risks and strategy before diving into angel investing.

“Whilst a less trodden path in comparison to more popular investment routes, like shares, or more recently, the likes of ETFs, NFTs and bitcoin, angel investing is becoming increasingly accessible,” she said.

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Within Australia especially, Ms Onay said that the local start-up ecosystem was generating an increasing number of opportunities for angel investors.

Aussie investors turn to angel investing

“We are seeing more momentum created by angel groups, syndicates and investment platforms, and it’s getting easier to access deals,” she said.

Another big driver of activity in this area is the lowering of the usual barriers, with more than three million Aussies now said to pass the “sophisticated investor” test.

“The barriers to angel investing are getting smaller due to income and asset price inflation,” she explained.

Ms Onay added that new stepping stones are making it easier for potential angel investors to graduate towards turning that ambition into a reality.

“We are seeing a surge in equity crowdfunding platforms, which allow investments up to $10,000 without accreditation,” she said.

Education around angel investing is also becoming more easily accessible.

“As an asset class, venture is known for its high-risk, high-reward status and investors are celebrated for dramatic returns,” Ms Onay said.

She noted that the risk is even higher with angel investing but added that “proper education and clear understanding of how to build a meaningful portfolio” leave a lot of opportunity on the table for those willing to seize it.

“With the right knowledge, angel investing can be very rewarding — not only for individuals but the growing local startup ecosystem as well,” she said.

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About the author

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Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

author image

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

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