The Southern region of Africa is about to benefit from the newly launched African Angel Academy (AAA) that aims at accelerating the Angel Investment Scheme through the creation of angel investment curriculum, tools, and mentorship from already established Angels, via online and in-country workshops.
Established by the tripartite coalition of Fraser Consulting, Viktoria Business Angel Network (VBAN), and the African Business Angel Network (ABAN), the newly launched African Angel Academy envisages reaching out to a wider audience that aspires to become Angel Investors. The Academy hopes to contribute to the rising need for a stronger community of Investors across Africa. This community of Angel investors will provide mentorship, training, and capital to start-up businesses.
Some might ask, “Who are the Angel Investors?” They are sets of wealthy individuals that fund businesses and therefore, claim a certain percentage of equity in the business’s stake. That is, they are ready to bear the brunt in case the business goes south and have their accounts smiling if the businesses flourish. To be an Angel Investor, you, literarily, must have good “smelling” sense. That is, you must be able to sense businesses that will have a good Return on Investment (ROI) within a specific period.
The tripartite founders have observed that Africa has myriads of start-ups that have little or no capital to launch their businesses. Leveraging on this fact, African Angel Academy (AAA) hopes to increase geometrically, the number of Angel Investors and groups that will fund and mentor these promising entrepreneurs. With this innovation, the unemployment and poverty rate in Africa will reduce drastically and the Gross Domestic Products (GDP) of African Countries will receive a quantum leap.
Currently, African Angel Academy has opened its application portal for the pilot program as it envisages 50 new Angels. These 50 Angels will be grouped into five, with each group having at least four female Investors. The purpose of this grouping is to make simple, the training process for the Angels for the next 12 months. This program is opened to both corporate bodies and individuals. However, the project is kicking off in Southern Africa and five out of the six countries (Zambia, Botswana, Mauritius, Tanzania, South Africa, and Namibia) will make the selection.
The curriculum covers topics such as investing strategy & mandate, Deal sourcing, Deal structuring, Teams, Valuations, Negotiations, Due diligence, AAA Group Management & Structures, Post investment & value addition, and Exits, and these will be thought online and through in-country workshops.
The investors that make the selection will be provided with tools, support, and training to become successful AAA Investors. They will know the strategy of investing wisely and ways of reducing or mitigating the failure rate. Training and practical teachings could be in the form of workshops, online videos, tools, and virtual mentorship for the groups.