RENEW Strategies

Why Are Angel Investors Important?

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Emily Ziethen
| July 7, 2015

On June 30th, RENEW provided a private equity training for the World Bank’s Ethiopia Climate Innovation Center (ECIC), an initiative that “supports Ethiopian small and medium enterprises (SMEs) that are developing innovative solutions to address climate change challenges”. The training provided an introduction to private equity, with the goal of familiarizing ECIC entrepreneurs with equity mechanisms for raising funds.

One such mechanism is through angel investing. Private equity angel investors (like members of RENEW’s Impact Angel Network) provide SMEs much-needed access to investment capital and business expertise, as well as access to new markets and foreign partners. This in turn allows companies to scale at a much faster rate than they would be able to do on their own. And while changes to the structure and management of the company are to be expected (such as the implementation of an advisory board), the relationship aims to ultimately provide long-term growth potential and stability to the company.

Overall, the training was a success with around 20 entrepreneurs in attendance. At the end of the training, participants came away with a better understanding of private equity, why it is important for entrepreneurs who are looking to expand their company’s operations, and the essential role of angel investors.

If you are interested in additional information about RENEW or an upcoming private equity training, please contact us at renew@renewstrategies.com to learn more.

*Ethiopia Climate Innovation Center