In 2017, Insper Alumni created Insper Angels. It is a network specifically made to talk about angel investment — that is, an investment an individual makes in a startup from any sector that is at the beginning of its trajectory. The essence of the initiative is to foster Brazilian entrepreneurship by connecting exceptional entrepreneurs with engaged investors.
Currently, the Insper Angels network has over 250 angel investors from the most diverse backgrounds who, besides providing financial capital, contribute to entrepreneur development through networking and targeted mentoring. Members are usually in advanced positions in their careers. Therefore, they can help startups with contacts and market-specific knowledge. It is important to emphasize that the angel investor does not yearn for the majority interest, either for an executive position at the startup. However, they participate as a mentor and can reach the company’s board level.
Insper Angels already have invested in seven startups. To be a member of Insper Angels, you must be an alumnus from an Undergraduate, Graduate, or Executive Education program and be appointed by the Insper Angels member base. Also, you need to have the interest and availability to invest at least R$ 25,000 annually in startups.
Check below for more information about Insper Angels in an exclusive interview with our Business Administration alumnus Vitor Kawamura. He is an investor, co-founder, and president of Insper Angels.
1) How does Insper Angels work for startups?
First, Insper Angels’ dealflow team decides for, among all startups that have applied, only those they consider the best to proceed to the next stage.
In the second stage, the selected companies introduce themselves to Insper Angels’ members. Such members can ask questions regarding each company. Therefore, the member board will decide whether the project has brought interest or not.
Then there is a more detailed and in-depth analysis of the company. Such an analysis is the basis for angel investors individually deciding whether or not to invest in the project.
The next step is the part of the contract, in which candidates give information on partners’ data and the company’s financials. Finally, Insper Angels make the contribution to capital, which is followed by a continuous follow-up by its team.
The cycle means that only the most qualified people and ideas are approved (generating a higher return). Moreover, entrepreneurs who receive investment have the safety of quality support.
2) What does it take to be a member of Insper Angels?
To become an Insper Angels member, you need to comply with three requirements:
3) What are the benefits of being an Angel Investor?
Among the benefits are:
4) What are the benefits of becoming a member of Insper Angels?
The main benefits are:
4) What does it take to become an angel investor?
Angel investors can be either people with no experience with entrepreneurship or entrepreneurs who are experts in the matter and intend to help new businesses.
It is not necessary to have in-depth knowledge of the angel investment market. After all, one of our network’s purposes is to promote education and train new investors in the ecosystem. The important thing is to be interested in the topic and willing to invest in new businesses.
5) What is the biggest challenge Insper Angels face?
In general, Insper Angels has as its purpose, and also as its biggest challenge, fostering the entrepreneurial ecosystem in Brazil. We do this through our investments, the creation of content on the topic, and by training our member base.
In the day-by-day, our main concern is to ensure that we are presenting our members with good business opportunities so that investments are beneficial to entrepreneurs, investors, and society in general.
6) How does angel investment have a positive social impact?
Angel investment is a way to invest in the real economy and promote innovation, technology, and entrepreneurship in Brazil. The focus is on high-potential innovative companies. Those businesses’ success will be responsible for generating qualified jobs and a large amount of taxes collected.
Unlike in traditional investments, the angel investor plays an important role in invested startups, which goes beyond injecting financial capital into them. There is a relationship of partnership and sharing experiences, expertise, and contacts, with the purpose of helping the company to grow.
The importance of angel investors is so great that an OECD (the Organization for Economic Cooperation and Development) study in more than 30 countries identified that “angel investors have a critical role in startup success.” Thus, governments should have incentive policies for that type of investment.
Through this news story, you can learn more about the investment we made with Harvard Angels and Angels do Brasil, of over than R$ 1 million, in Incentiv. It is a startup that promotes social development by enabling projects approved in tax incentive laws.
7) How can people interested in Insper Angels learn more about it?
We invite all interested parties to visit our website. In it, they will find more information on how our investment process works and how to become a member. Also, we have profiles on Instagram and LinkedIn, and both created for us to get closer to members and stakeholders.