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The Fintech Times
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Helping Angel Investors Support Startups: Hub71 Announces Angel Support Package at ADFW
- Abu Dhabi’s global tech ecosystem, Hub71, has launched an Angel Investor Support Package during Abu Dhabi Finance Week (ADFW). The package aims to enhance opportunities for angel investors to develop networks and establish investment companies within the region’s startup market
- The package, which recognises the vital role angel investors play in early-stage startups, includes a financial incentive of AED 150,000, and equips investors with digital infrastructure for voting on startup projects and tracking investments
- By empowering angel networks and simplifying the investment process, Hub71 aims to facilitate more early-stage ticket investments, in turn accelerating the growth and scalability of startups
- The capital’s ecosystem is only 10 years old, meaning the earliest VCs are still only around a decade old too. Mohamed Al-Binali, value creation lead, Hub71, says, “Part of what we do is identify the gaps in the ecosystem and figure out how we can fill them. We have launched programmes and offerings to accelerate the ecosystem, and the latest one is our angel support package
- Angel investors are usually the first to invest after family and friends. Ecosystems have been developed because of astrong angel presence. Based on Al-Binali’s comments, angel investors are key to taking startups from ideation to product
- The angel support package provides Angel Networks formed through Hub71 with AED 150,000 for two years, as well as supporting them as they deploy into Hub 71 startups, with legal costs and terms sheets. The networks can either join or create their own
- The initiative aims to fill gaps in the fintech ecosystem linked to regulations, business advice, and angel investment. Five years on since the launch of the Hub71 platform, the mission is to attract startups and bring partners to enable their growth
- The UAE has a diverse ecosystem, with more than 200 nationalities working within it. Al-Binali explains, “They know how to invest, how to deploy it and where to do it - Hub71 is one of those platforms that showcases these opportunities.”
- Angel investors provide small tickets, but if 3-5 angels join together, this quickly becomes a $50,000 or even $100,000 ticket to a startup which is better for the startup to have one group invest together as opposed to individual investors
- Al-Binali concludes that filling the gap is more important than playing a numbers game. Al-Binali says, “We’re starting to see more specialised angel networks. For example, doctors are coming together to create health angel networks that fuel the health sector. We’re seeing the same thing in the climate tech and fintech sectors too.”
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