Starting an Angel Investment Network in Bosnia and Herzegovina?
On Thursday we organised online panel about angel investment network, as a part of the program on startups that we are implementing together with GIST Network. There are a few people who heard about it and even fewer who know what it is. So what is Angel Investment?
Angel Investment is investing in ideas and teams that are about to become a startup or have very recently become one. It encompasses a lot of risk due to the stage of the startup at which one is investing, but it promises big returns, where 20 to 30 times return over a five- to seven-year period is considered a good investment. It’s also characterised by “smaller” amounts in comparison to standard investment, where smaller should be put into specific context. It takes a couple of thousands of dollars to start a software company, while it takes a couple of millions for a life science one.
Statistical and bureaucratic differences aside, what differentiates angel investment the most from other forms is its non-monetary aspect. Angel investors typically invest a lot of their time, counseling and contacts. They are more of a caretaker than a typical investor, your startup’s nanny helping you raise your little, fragile baby.
Special thanks goes to our speakers who shared their knowledge and insight with our audience:
⭐️ Mirza Cifric – CEO Veritas Genetics, Serial Biotech entrepreneur in Boston, USA
⭐️ Eli Valasquez - Director of Venture Development at VentureWell, USA
⭐️ Dr. Mirza Tihic - Entrepreneurship Research Fellow at Syracuse University, USA
⭐️ Amra Omeragic – Senior Investment Officer, Finance in Motion, Bosnia & Herzegovina
⭐️ Edin Mehic – Co-Founder, Ant Colony, Bosnia & Herzegovina
⭐️ Selma Prodanovic – Founder/CEO, 1MillionStartups, Austria
Taking all this into consideration, it’s easy to understand why angel investments are essential for the development of startups and more broadly the development of the ecosystem. They are an important link between having an idea and having a locally recognized startup on its way to stardom. Hence, the Foundation recognized this as an important challenge that should be addressed as soon as possible if we are to spur innovation in our country. The first product of our determination is this panel we organized on Thursday on the topic of the establishment of Angel Investment Network in our country. Here are the main takeaways:
Begin with a discussion - many AINs and especially the ones in developing countries were started as a discussion, like this one, around the topic of angel investment. What’s essential is that like-minded people come together, share their vision and build trust.
Start with the end in mind - the success of the AIN will almost certainly correlate with the clearness of its aim. Is it going to be focused on science startups? Women founders? Exclusively local angels? Regional initiatives? It doesn’t matter much, as long as the collegium is in harmony with the network's goal(s).
Don’t wait for the government - we come to this again and again. People from our country have a hard time accepting that the government is not responsible for their failure and that no nation on Earth doesn’t complain about their government and point fingers at it. Just stop complaining and do it!
There are more opportunities than you think - even though the current BH Startup Ecosystem is fragmented, it still offers a lot of resources - money, education, networks, etc. Besides this, we have an incredible diaspora that is finding ways day in and day out to boost our economy and innovation in meaningful ways. Instead of looking for excuses, we should rather focus on formulating a high quality idea, assembling like-minded, proactive people around ourselves or joining organisations that do that already, like BHFF, and get to work! Then work, work and work some more!
These are some of the most important things we learned on the panel. For a broader pictures and better understanding, feel free to rewatch it on our YouTube channel.