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Why angel investors remain optimistic despite startup failure rate

Nearly half reported positive gains, with 22% experiencing losses, whilst 36.1% did not track.

Seven in ten angel investors are diversifying across three to four asset classes to maintain portfolio health amidst high startup failure rates and limited liquidity, according to AngelCentral's report.

The report, which polled 70 angel investors in Southeast Asia, found that 40% have adjusted their investment tickets to $13,000 to $26,000, down from last year’s $26,000 to $65,000 range at 41%. 

Additionally, 61% of angels now invest via syndication.

Despite a funding slowdown in 2022 and 2023, eight in 10 remain optimistic about the startup ecosystem’s growth over the next five to 10 years.

Nearly half (41.7%) reported positive gains, with 22% experiencing losses, whilst 36.1% do not track portfolio gains.

New angels are entering the scene, with 30.6% having less than two years of experience. However, the investor demographic remains largely unchanged, with over 80% being male corporate workers or business owners in their 40s and 50s.

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