'Angel investments' to hit $50B, Turkish event hears

By Tuba Sahin and Dilara Zengin

ISTANBUL (AA) - So-called “angel investors” – wealthy individuals putting up their own money to back small and medium-sized businesses -- are expected to spend $50 billion in the coming years, an Istanbul conference heard on Monday.

Baybars Altuntas, chairman of the World Business Angels Investment Forum, said the capability of angel investors should be leveraged to increase the efficiency of investments, along with market size.

Altuntas also said 320,000 business angels invested €6.7 billion ($7.1 billion) in Europe and $26 billion in the U.S. last year.

Speaking at the forum’s opening ceremony -- backed by Anadolu Agency as global communication partner -- Altuntas said:

"Only angel investors have the know-how and the networks to put start-ups and scale-ups into the capital markets.

“If we can create an innovative financial plan for early exits, this will mean more jobs in a shorter period of time."

The forum focuses on how corporate businesses can foster open innovation and deliver more business value by setting up partnerships with angel investors, start-ups, scale-ups and SMEs, Altuntas said.

"We are all coming together to create new ways for angel investors to access finance. Today we are here to shape the global agenda of the early-stage equity markets of the world," he said.

The two-day event -- which sees the London Stock Exchange Group (LSEG) as its main sponsor -- hosts more than 400 angel investors, angel network managers, policymakers, academics, high-growth business owners, presidents of international associations, and stock exchange executives from 54 countries.

"The $50 billion market for angel investment promises a $150 billion exit in the next 5 to 7 years," Altuntas stated.

Most early-stage equity markets today are in G20 countries and for this reason cooperation with G20 administrations is very important if angels are going to meet the challenge, he added.