Angel investment is an essential component in the world of startups and new companies. In El Salvador and Central America, this form of investment is constantly growing, providing opportunities for business development and innovation.
What is angel investing?
Angel investing is a form of investment that is usually done by individuals or groups of investors called angels. These angels provide capital to new companies and startups that have great potential, but have not yet reached the profitability stage. The term "angel" refers to the person or group that provides the money necessary to drive the growth of a company.
How to find angel investors in El Salvador?
In El Salvador, finding angel investors can be a crucial step for a startup's success. Here are some ways to find angel investors in the region:
Identify the angel community: AngelList is a web platform that provides information on angel investors in El Salvador and around the world. It is a valuable tool for identifying investors and their companies.
Search for suitable investors: AngelList also offers a database of angel investors in El Salvador that can be filtered according to different criteria. This allows you to find investors who are interested in the type of business you are developing.
The Investment Panorama in Central America
The investment environment in Latin America has experienced notable changes in recent years. Although 2022 saw a 57% decline in venture capital investment in the region, it is important to analyze these figures in context.
In 2021, startups in Latin America raised a record USD$19.5 billion. In contrast, in 2020, the financing figure reached USD$4.8 billion. If we compare 2022 with 2020, investment is 73% higher, indicating that, although there was a decrease compared to 2021, the outlook remains positive.
Retrospective of Large Investors
In 2021, large global investors increased their activities in the region, boosting venture capital investment. However, in 2022, many of them pulled back due to less favorable market conditions. Notable examples include the lack of investment disclosure by SoftBank Latin America Ventures and Tiger Global Management.
In 2022, 39 investment rounds were carried out in Central America, marking a constant increase in recent years.
Highest rounds in 2022:
Seed financing: USD$18 million raised
Seed financing: USD$5 million raised
Seed financing: USD$4 million raised
Funding Round financing: USD$2.7 million raised
Seed financing: USD$2.5 million raised,
Angel investing and the investment landscape in Central America are evolving rapidly. Despite the decline in venture capital investment in 2022 compared to the previous year, the region remains a point of interest for investors and entrepreneurs. The support of angel investors and the constant growth of new companies are indicative of the exciting business future in El Salvador and Central America.