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If you're in search of angel investors South Africa, you should be sure to take certain steps to make sure you have a plan. There are a few things to keep in mind and a business strategy must be in place prior to you present your idea. You should also consider the risks and benefits of angel investing in South Africa. For instance, 95% of all businesses fail in South Africa, and many concepts never turn into profitability. However, if you've got the right business plan and can sell your equity in the future and increase the value of your equity multiple times over.  
  
Entrepreneurs  
  
In South Africa, there are many methods to raise funds for your new business. Based on your financial circumstances you can choose to invest in a business that is driven by passion or get funding from government agencies. The former is the most feasible option. Angel investors invest their money in helping businesses that are just starting out succeed. Entrepreneurs who are interested in raising funding should contact the Angel Investment Network to find the right partner.  
  
Entrepreneurs must present their ideas and earn investors' trust to obtain funding. Although they're unlikely to be involved in daily business operations, angel investors may require management accounts as well as a business plan and tax returns. The most popular types of investment available to new businesses are equity investments as well as debentures. Both are viable options for raising funds, but equity investments are the most well-known. However, if you don't have enough capital or equity to be able to secure financing, you should think about an investment from a venture capitalist.  
  
While the government of South Africa is actively encouraging new business ventures and attracting international talent, a number of angel investors are investing in South Africa. Angel investors play a crucial part in the development of a nation's investment pipeline and assist in unlocking the potential of entrepreneurs. Angel investors aid entrepreneurs in getting off the ground by sharing their expertise and networks. The government should continue to provide incentives for angel investors to invest South Africa.  
  
Angel investors  
  
Media reports have criticized South Africa's increasing interest in angel investment due to its difficulties in obtaining private investors, and for business funding its inability to invest in new ventures. Despite facing many economic challenges, South Africa's high unemployment rate has been a major obstacle to its development. These issues can be overcome by investors investing in new businesses. Angel investors can be a valuable source of working capital for the new businesses without requiring any money upfront. Angel investors usually provide equity to startups, which allows them to expand how to get investors the business multiple time.  
  
There are many advantages for investing in angels in South Africa. While a tiny percentage of investors are angels but the vast majority are business executives with a lot of experience. Most entrepreneurs in SA are not able to get funding due to the fact that they lack experience, education background, or collateral. Angel investors need no collateral or other requirements from their entrepreneurs and invest in start-ups for the long-term. The results make angel investing the most desirable type of capital for start-ups.  
  
South Africa is home to many notable Angel investors. Former CEO of Dimension Data, Brett Dawson has created his own investment firm, Campan. His latest investment is Gather Online. This social website offers the ultimate gifting experience. Dawson has also partnered with Genesis Capital in a Wrapistry deal in November of last year. Gather Online founder also revealed that Dawson had invested in his startup. If you're looking for Angel investors in South Africa, be sure to reach out to him.  
  
Business plan  
  
It is vital to have a well-constructed business plan when approaching South African angel investors. They will want to see a solid plan that clearly defines your goal. They will also be looking for areas where you can improve your operations, such as key personnel, technology or other components that aren't working. They will also want to be aware of how you intend to market your company and How To Get Investors you'll be able to sell to them.  
  
Angel investors typically invest between R200,000 to R2 million and prefer to invest in the initial or second round of funding. They are able to purchase 15 to 30% of the company and can bring significant strategic value. It is important to remember that angel investors can also be successful entrepreneurs themselves, so you must convince them that you are planning to sell their equity to institutional investors once they invest in your company. If you can accomplish that you can rest assured that your business will attract the attention of institutional investors, and you will be in a position to sell their equity.  
  
Approaching angels should be done slowly and in small steps. It is recommended to approach angels by starting with smaller names and gradually building your pipeline over time. This will allow you to collect information about potential investors and prepare for your next call differently. This process can take a long time, so you'll need patience. This process could still bring great rewards.  
  
Tax incentives  
  
South Africa's government has provided tax incentives for angel investors. Although the S12J regulations are due to expire on June 30 however, they provide substantial tax breaks for wealthy taxpayers. However, they are not working as intended. While the tax benefit for angel investors is attractive for those who invest in angel investors, the majority of these investments are risk-free and include property, which offers guaranteed returns. Although more than ZAR11 billion was invested in 360 S12J venture companies however only 37 percent of these companies generated jobs.  
  
Section 12J investments, enacted by the South African Revenue Service, provide investors with a 100 tax write-off for the investment they make in SMMEs. The reason for this tax break was to encourage investing in SMMEs, which can create jobs and economic growth. Because these investments usually carry higher risk than other investments, the law was intended to encourage investors to invest in small and medium-sized businesses. In South Africa, these tax breaks are particularly beneficial to small businessesthat typically have little resources and aren't able to raise large amounts of capital.  
  
Tax incentives for angel investors in South Africa are designed to attract more HNIs to invest in companies that are emerging. These investors do not have the same strict timelines as venture fund managers, so they are able to be patient and collaborate with entrepreneurs who require time to build their markets. The incentives and education programs can help create a more healthy investment environment. Combining these two factors can increase the number of HNIs who invest in new ventures and help companies raise capital.  
  
Experience  
  
It is important to consider the experience of angel investors if you intend to establish a business in South Africa. In South Africa, the government is divided into nine provinces namely the Gauteng province and the Western Cape province, the Northern Cape province, and the Eastern Cape. The South African economy is diverse although each province has its own capital markets.  
  
One example is Dragon's Den SA's Vinny Lingham. He is a well-known investment in angels, and has invested in many South African startups, including Yola, Gyft and Civic Identity Protection System. Lingham has a rich background in business and has poured over R5 million in South African startups. While you might not anticipate your business to receive a similar amount of funding If you have a good idea, you may be able to tap into this wealth and network with a lot of angel investors.  
  
In lieu of a traditional financial institution the investment networks and the government in South Africa are turning to angels for funding. This means that they can invest in new businesses which eventually will attract institutional investors. It is essential to make sure that your company can sell its equity capital to institutional investors due to their connections at a high level. Angels are South Africa's most connected people and how to get investors are an excellent source of funding.  
  
Rate of success  
  
The average rate of success for angel investors in South Africa is 95%. However there are several factors that could be responsible for this high percentage. Investors and founders who can convince angel investors to invest in their venture are much more likely to attract institutional investors. The idea itself has to be profitable enough to attract investors, and the business owner must prove that they will be capable of selling their equity to these institutions once the business has developed.  
  
The number of angel investors in the country is the first thing to think about. The numbers aren't precise but it is estimated that there are twenty to fifty angel investors in SA. These figures are estimates because there are many more angel investors who have made ad-hoc private investments during the early stages of the business and aren't accustomed to investing in new ventures. Christopher Campbell spoke out about the difficulties South African entrepreneurs face when trying to raise funds.  
  
Another factor is the amount of experience of the investor. Angel investors in South Africa need to look for entrepreneurs who are in the same spot as them. Some of them might be successful entrepreneurs with high growth potential and have built their businesses into successful enterprises. Others might need to spend time researching and selecting the most suitable angel investors to invest in. In general, the success rate of angel investors in South Africa is about 75%.