Investment Opportunities in China and India

By Mike Lebus


While relatively new in these countries, the overall rise of global entrepreneurship combined with China and India's rapidly growing economies has produced a wave of angel investors. Still in early development stages, angel investment groups are a far rarer sight here than they are in the western world.

Still, built on their own entrepreneurial wealth, many private investors operate independently - looking to make investments in the business sector that they are experienced in, and in some cases looking for ways to easily expand their own businesses with sound investments that bring a strong return.

With local companies like Baidu, Ctrip and Sohu built from Venture Capital and Angel Investments, along with joint ventures such as Tata Docomo, the buzz out there has allowed many small businesses and entrepreneurs to start pursuing the angel investor route. As a result, the Angel Investment Network has opened a branch in China, with the hope of providing a communication channel between local investors and businesses.

Exact statistics on angel investment in China and India are hard to find due to how some records are kept (or not kept for that matter), but some estimates claim that over 10 million people in both countries are seeking investment channels with private funds and assets. Unlike traditional investors, angel investors are more personal with their investments, combining financial forecasts with their own interests of what the entrepreneurial idea has to offer.

However, just like most other markets, angel investment is a risky strategy. A lot of angel investments do not succeed, and so many people prefer to invest through investment groups which share the profits and soften the impact of any loss. This could be what is needed for the Asian angel investor communities to progress. Rules in the market are still being written as it seems, but even though the risks are there, the potential for getting a strong return is quite appealing.




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