What is an Angel Investor?  - LaunchVic

What is an Angel Investor? 


An Angel Investor is an investor with a high-risk appetite who provides seed investments into early-stage startup ventures, prior to institutional investors including venture capitalists.

Typically, Angel Investors provide more than investment alone – they bring business experience, mentorship and networks that can help the invested startup accelerate its growth.

What is an angel network?

An Angel Network is a formalised group of Angel Investors that collectively evaluate and invest in entrepreneurial ventures.

Key benefits for members include:

  • An increased pool of capital to make larger investments (and hopefully larger returns)
  • Greater diversification through smaller investments in several ventures
  • Shared costs of due diligence
  • Access to dealflow and connections to the best up and coming startups
  • Access to expertise of other sophisticated, active angels and angel networks

LaunchVic-funded angel networks

To date, LaunchVic has funded nine angel networks.

These groups have recruited 587 new angel investors and invested a total of $25.9 million in Victorian startups.

The Playbook Angel Network is a syndicate of experienced founders and operators who want to lean in and support the next generation of founders.

Ecotone Ventures is a new climate-focused Angel Network based in Victoria connecting the growing number of climate-conscious investors to early-stage ventures with climate solutions.

Cut Through Angels is a new angel group from the makers of the hit startup newsletter Cut Through Venture. The fund is industry agnostic and technology-centric.

Australian Medical Angels is predominately made up of practising clinicians that offers both clinical validation and invaluable links to the healthcare industry for Victorian-based HealthTech Startups.

Flying Fox aims to back teams solving big problems in large markets that are undergoing macro shifts, with a preference for solutions that bring people together, improve everyday life, or address physical and environmental health.

Scale Investors is Australia’s first and only network of angel investors committed to investing in and empowering exceptional women entrepreneurs.

Innovation Bay brings together a group of passionate investors to meaningfully connect and fuel the future of startups.

Archangel is an early stage venture capital fund investing in Australian startups. They work with great technology founders and investors to build game changing companies together.

Angel Partners targets emerging professionals and recently successful startup founders to collectively invest in early-stage technology companies within Victoria through a syndicated structure.

Case Study: Archangel

One example is Archangel, an angel network originally established with a 2020 grant from LaunchVic which has now “flipped up” into an early-stage venture capital fund with 150 investors and over $20 million ready to deploy into new deals.

The Archangel team has grown to six people, who have made 85 investments into 55 companies and achieved a handful of exits already.

Archangel Founder Ben Armstrong said angel networks provide a crucial access point for investors new to the startup sector.

“Angel networks provide a supportive environment for new investors and allow them to get comfortable with new terminology, the risks involved and learn before taking their first investment step.”

“I think it would be fair to say we would never be where we are today if we hadn’t taken the leap to apply for funding from LaunchVic,” Ben adds.

“The funding was a big benefit of course and helped us cover all our formation costs and most of our operational costs. Another benefit was forcing us to be more thoughtful about how we’d go about building the business and hitting milestones.”