WBAF, as an affiliated partner of the G20 Global Partnership for Financial Inclusion, understands that gaps in a start-up’s business background and training hamper their ability to access the all-important financing. It recognizes an ethical and professional responsibility to help young companies strengthen their position by helping them access the smart capital.
Thanks to its ever-growing network of successful business leaders in 127 countries, WBAF is in an excellent position to support start-ups as they set out on the path to growing their businesses into sustainable and then scale-up enterprises. Drawing on the collective expertise of its global network, it has established Global Start-up Investment Promotion Agency (WIPA).
We are sure start-up founders, qualified investors and FDI bodies will have a rewarding experience by cooperating with WIPA. Our ultimate goal is to support all to create more jobs, wealth and social justice for world economies.
In the past, inventions were important for the economic development of societies. In the 21st century, however, it is not invention, but innovation that matters. In earlier times, entrepreneurial skills were less important when it came to getting an invention into the market, because customers were ready to buy anything new.
Today, entrepreneurs need much more than a clever idea to succeed; they need a complex set of skills and funding to develop, execute and succeed in taking their idea to market and, growing the business once it is established. There are challenges and risks that entrepreneurs face to turn their innovative ideas into successful business ventures and then transform them into sustainable high growth companies that will bring returns to investors. The task for female founders, [and other groups that are under-represented,] is doubly hard.
The best form of early stage finance is when money, know-how, mentorship and networking are combined. This is smart finance, and it gives entrepreneurs and SMEs a much better prospect of succeeding.
Consider the various sources of finance available to entrepreneurs. Beyond basic bootstrapping, there are corporate ventures, angel investors, crowdfunding platforms, accelerators, VCs, banks, public grants, co-investment funds, business plan competitions, technology transfer offices, family offices, private equity investors and stock exchanges. With the notable exception of angel investors, all these sources provide money, but little else.
The only true source of smart finance is angel investment. It is only angel investors who are able to influence a country’s economic development by providing more than just money to entrepreneurs and SMEs. They contribute their own know-how, provide mentorship, and share their own networks in contributing to the businesses they invest in. They add value by serving as directors on company boards, holding the hand of entrepreneurs after they invest, helping to chart the companies they back to a successful exit which delivers returns not only for the founders and themselves, but also to local, national or even global economies. They are the main driver behind taking innovation to commercial success and are the natural leaders of the world’s early-stage investment markets.
In 2020, more than 300,000 angel investors invested more than $25 billion in start-ups in the US, and more than 310,000 angel investors invested more than Euro 6 billion in Europe. The estimated total global market size of angel investment is over $50 billion of new investment every year.
Governments around the world have understood the importance of angel investment for boosting their economies. During the Presidential Summit on Entrepreneurship in 2010, President Obama’s response to my concerns expressed about making available public grants for entrepreneurs was promising. In a special meeting with him, he agreed with and supported WBAF’s position on the importance of angel investors in terms of converting public money into ‘smart money’, that is, cash that is invested by parties who are experienced, well-informed, and well connected.
Where are the gaps in a typical entrepreneur’s skills set?
Entrepreneurs stand out from the crowd when it comes to thinking creatively and developing products and services, and they certainly excel in persuasion, leadership, and interpersonal skills. In terms of running their businesses and scaling them, however, they often come up short. Many tend to flounder in key areas of management that include, areas such as strategic marketing, team-building, customer acquisition, and more. Yet if the business is going to succeed to the point where it can scale, knowledge and expertise in these areas is critical.
Then there is financing. Without finance, start-ups struggle even to get off the ground, much less establish themselves and then scale-up. Where does the money come from? Commercial banks, even those that are keen to support start-ups, are hesitant to approve loans, knowing that the majority of start-up applicants lack experience in running a business, particularly in financial matters and frequently cannot prove either the market opportunity or a customer order book that would give the bank the necessary comfort. To protect themselves, banks demand collateral from start-ups that may be prohibitive, and the amounts they are willing to lend may not meet the needs of these firms. If they lend, the interest charges and repayment terms are frequently prohibitive with the result that start-ups are often unable to afford the very loans that would allow them to scale.
WBAF’s proactive response: Global Start-up Investment Promotion Agency (WIPA)
WBAF, as an affiliated partner of the G20 Global Partnership for Financial Inclusion, understands that gaps in a start-up’s business background and training hamper their ability to access the all-important financing. It recognizes an ethical and professional responsibility to help young companies strengthen their position by helping them access the smart capital.
Thanks to its ever-growing network of successful business leaders in 127 countries, WBAF is in an excellent position to support start-ups as they set out on the path to growing their businesses into sustainable and then scale-up enterprises. Drawing on the collective expertise of its global network, it has established Global Start-up Investment Promotion Agency (WIPA).
I am sure start-up founders, qualified investors and FDI bodies will have a rewarding experience by cooperating with WIPA. Our ultimate goal is to support all to create more jobs, wealth and social justice for world economies,
Yours Sincerely,
Baybars Altuntas
Executive Chairman, World Business Angels Investment Forum
An affiliated partner of the G20 Global Partnerships for Financial Inclusion (GPFI)
As we saw during the emergence of Industry 4.0 more than a decade ago, economies and companies have faced rapid disruptions that keep reshaping and redefining business models. “Business as usual” can no longer be relied on and countries can support companies that need to adopt a new paradigm so they emerge stronger and can then succeed in this rapidly changing world.
Another topical issue related to Industry 4.0 was the future of jobs which increasingly figures in everyone’s minds – governments, society, and individuals. As old jobs were rapidly disrupted and/or eliminated, new skills were needed for the future economy.
Entrepreneurship driving the future start-up economy became the focus for economies and countries. Just when we thought we understood the megatrends and the new norms for our businesses, the Covid-19 pandemic shook the world. Already disrupted business models were once again suddenly disrupted again. The start-up economy has now become a more urgent priority for everyone – governments, societies, companies, and individuals.
At the WBAF, we realize the importance of the start-up economy to create social justice for all around the world. And among others, financing and funding start-ups is one of the greatest challenges faced by all entrepreneurs. Whether you are an entrepreneur in Australia or Zambia, or whether you are in China, USA, India or the UK, the channellings you face as a start-up entrepreneur are the same and there is a common challenge of raising finance everywhere across the world.
When the pandemic hit the world in early 2020, the Global Start-up Committee of the WBAF conducted a global survey asking entrepreneurs about the challenges they faced as a result of the Pandemic and the number one issue identified was that start-ups were running out of funds and urgently needed to raise new investment. An offshoot of that finding is this effort from the WBAF in creating WIPA to help entrepreneurs around the world access investment finance for their start-ups and ventures.
In 2020, more than 300,000 angel investors invested more than $25 billion in start-ups in the US, and more than 310,000 angel investors invested more than Euro 6 billion in Europe. The estimated total global market size of angel investment is over $50 billion of new investment every year.
Having started a few companies, and having invested in many more, I realized that sometimes good projects don’t get funded because they don’t have access to the right investor who can fund them – they just don’t know where to look or lack access to the right infrastructure where funding can be found. Meanwhile funders or investors who have the money to invest, cannot find the right companies and right teams to invest in. This is where WIPA hopes to play a vital role, by using the WBAF’s wide global network of angel investors and financing institutions to match deserving start-ups and entrepreneurs with the right investors and vice versa.
We invite all partners who want to help rebuild the global economies through start-ups and entrepreneurship to join us at WIPA. We will soon emerge from the global Pandemic to a New Normal and through WIPA, I am sure we can help create the future companies and the future jobs in the future economies through the development a resilient future global community. The effect will be that we will create a brighter future for the rest of the 21st century.
Yours Sincerely,
Inderjit Singh Dhaliwal
President, Start-up Investment Promotion Agency (WIPA)
World Business Angels Investment Forum)
An affiliated partner of the G20 Global Partnerships for Financial Inclusion (GPFI)
As an affiliated partner of the G20 Global Partnership for Financial Inclusion (GPFI), the World Business Angels Investment Forum (WBAF) aims to empower the world economy by connecting world-class start-ups with world-class investors through its Start-up Investment Promotion Agency (WIPA).
WBAF invites main players of Foreign Direct Investment (FDI) ecosystem (economic development boards, regional development agencies, investment promotion agencies, national and regional development banks, chambers of commerce and industry, business councils, government ministries, SME development agencies, innovation agencies, technology transfer offices, techno parks and economic development departments of municipalities) to cooperate with WIPA to connect their country’s most exciting start-ups with global qualified investors (angel investors, VCs, private equity funds, co-investment funds, corporate venture finance, wealth management institutions and family offices). This co-operation will pave the way for the creation of national start-up champions, who will, soon, become unicorns with minimum $1 billion company valuations. Through WIPA countries will see Foreign Direct Investment (FDI) volumes grow, resulting in increased economic growth and development.
Start-up Exchange Programmes (WSEP)
WBAF invites all start-up founders to join WIPA Start-up Exchange Programmes to benefit from WBAF’s extensive network around the world, including its 725 International Partners in 127 countries, WBAF Business School, WBAF Publication House, WBAF International Committees, WBAF’s Institutional Members, Global Fundraising Stage and WBAF Angel Investment Fund.
The ultimate goal is to pave the way for world-class investments by engaging more FDI agents and more start-ups, which will contribute to the creation of jobs, social justice and wealth for local economies.
Invest in Start-ups of this Country
The financing of emerging high-growth-potential businesses through angel investment and investments from VCs and CVCs are at record levels, despite negative global FDI trends. WBAF believes that, by combining regular contributions from the numerous dynamic players of early and growth-stage equity and capital markets around the world, we all benefit from shared learning, better networks and increased exposure.
We therefore invite all players of the FDI ecosystem to discover opportunities in equity and capital markets, the start-up economy, and innovation ecosystems. We encourage both corporations and individuals to make cross-border investments and co-investment into start-up ventures, thereby leveraging the capacity of FDI globally.
Cross-border Investor Delegations
As an affiliated partner of the G20 Global Partnership for Financial Inclusion (GPFI), the World Business Angels Investment Forum organises investor delegations to emerging markets and destinations of the world to create a global communication with the purpose of increasing cross-border investments. Delegates on these visits will see how to organise their managerial talent and resources to act where governments are unable or unwilling to do so. These leaders have a sense of being called upon to seek the common good, to make a difference and to make the world a better place from their actions.
We think exponentially, unrestrained by barriers, especially when it comes to people talent
Hiring the right people can be challenging. WIPA gives entrepreneurs and founders of start-up ventures access to a huge talent pool and helps them to define the right HR architecture for their start-ups.
Together we create a strong and unique brand for each and every start-up, with whom we work. We help founders to establish the values and guidelines that will characterize their company; all perfectly shaped to their needs.
We think exponentially, unrestrained by barriers. With WBAF’s extensive global network and our broad network of passionate entrepreneurs and investors, WIPA leverages our resources for individual success of Entrepreneurs-in-Residence (EIR) incubated at the WIPA.
WBAF invites you to join our global efforts to ease access to finance for entrepreneurs and increase financial inclusion. For societies around the world to flourish economically, we need more successful entrepreneurs and SMEs. We are confident you will find WIPA a worthwhile endeavour!
Yours Sincerely,
Christopher Drescher
Managing Director, Start-up Investment Promotion Agency (WIPA)
World Business Angels Investment Forum
An affiliated partner of the G20 Global Partnerships for Financial Inclusion (GPFI)