How To Find Angels in Australia (+ Top 7 Angel Investors Networks)

If you’re looking to get funding for your startup in Australia, angel investors are a great starting point. Yet, how to find angel investors for your startup in Australia? There are a number of ways to find angels for your business, from networking to angel investors groups.

In this article we’ll tell you everything you should know about angel investors and how to find them in Australia. We have also included below a list of the top 7 angel investors websites you can use.

We’ll cover:

What is an Angel Investor?

Also referred to as “angel”, an angel investor is a private individual who has the financial capacity to provide initial capital for a business or a startup. In return for their investment, angels get shares in the company in the form of equity or convertible debt.

Angel investors may sometimes provide a one-time investment to startup businesses in order for them to launch their company. Most often however, angel investors pledge continued financial support: they reinvest in further rounds as the startup scales up, until it makes a profit.

Make no mistake: angels rarely invest out of pure altruism, and their investment is never free money. Instead, angel investors look to generate a profit out of their investment.

Because angels often invest very early on (unlike VC funds – more on that below), they typically look for significant return on investment. A study actually looked at the returns of 3,097 investments by 538 angels worldwide. On average, their return was 2.5 times, meaning an impressive IRR of 27%.

When we think about Angels, we often only refer to high-net-worth individuals yet there are other types of angel investors. Actually there are 4 different types of angels: friends & family members, private individuals, groups of investors, and crowdfunding platforms. For more information on what they are and how they differ from each other, read our article here.

5 Ways To Find Angel Investors In Australia

There are a number of ways to contact, and find angel investors. They are:

1. Networking

Friends and family are the most common sources small business owners turn to when finding angel investors.

While this is usually fine if you happen to be related to a multi-millionaire, you might want to pass on considering financial help from your loved ones if you want to avoid falling out with them. If you are determined to seek financial aid from family and friends, make sure you have a legally binding contract, not just an informal agreement.

Don’t hold out on telling your friends about looking for funding. Even if none of the people you know can invest in your business, you can get their help in asking their contacts for an angel. The more people, the likelier somebody is to know somebody willing to invest. In addition, a personal referral can go a long way. 

By attending industry events and meet-ups, you can potentially meet angel investors yourself. Even if Dedicated “angel events” help you connect with investors looking for new opportunities. Since angels are usually acquainted with other angels, they may introduce you to other investors.

2. Angel investor groups

Some angel investors work in groups. This partnership makes it easier to cover a larger geographical area or pull their resources to focus on one specific industry. They also form groups to invest more funding and resources to businesses than they can muster independently. 

Every angel investor group has a different application process. Also, like any other investor, they receive a ton of pitches. The best way to impress them is to make sure your pitch deck stands out among the crowd.

Note that we’ve listed further below the top 7 angel investor groups in Australia so you can reach out to them.

3. Website platforms

Other than social networking platforms like LinkedIn, other websites are specifically dedicated to connecting angel investors and startups that need funding.

Examples of these website platforms include AngelList or FundingPost.

4. Do your research

Several websites like Crunchbase and Pitchbook allow the public to access their curated lists of angel investors.

That way, you can review through their lists of investors, search for those that fit your niche, region, and requirements. While Pitchbook requires you to pay, you can access the list curated by Crunchbase for free.

5. Startup incubators and accelerators

Startup incubators and accelerators are organizations that offer support and services to startups at their earliest stages.

They have an extensive network of mentors as well as angel investors and venture capitalists. When you avail of their services, they often put you in contact with these investors and other networks that may benefit your business. They also offer mentoring from other local businesses and accomplished professionals. 

Have a look at our article on the top 9 startup accelerators and incubators in Australia,

Top 7 Angel Investors Websites In Australia

If you don’t have any connection in your own network, internet is your friend here.

We’ve compiled below a shortlist of the top 7 angel investors websites in Australia you can use to reach out to angel investors:

1. Perth Angels

Perth Angels is an angel investor network that focuses on startups in the Western Australia region.

They typically invest anywhere from $100k to $500k in a variety of sectors including: fin-tech, medtech, media and entertainment, fashion and retail, industrial, transportation, mining, and renewables.

Since their inception in 2010, they have invested in 24 startups.

2. Byron Bay Angels

Byron Bay Angels is a rather recent angel investor network, it was founded in 2018. Since its inception, the fund invested in 12 startups.

3. Brisbane Angels

Brisbane Angels is an angel investor group focusing on startups in Brisbane, Queensland. The fund invest in seed rounds with tickets from $50,000 to $500,000.

They’re also one of the most active angel investor group in Australia, with over 37 investments in 2020 alone!

If you think you fit their criteria, make sure to apply.

4. Southern Angels

Southern Angels is an angel investor group founded in 2018. It has 18 members to date that provide capital and expertise to startups in industries ranging from biotech, fintech, advanced manufacturing, data analysis, software and IT.

5. Melbourne Angels

Founded in 2007, Melbourne Angels is one of the most active angel investor groups in Australia. As of 2021, they have over 500 members.

Since their inception, they have invested in over 120 rounds and 75 companies for a total of $26 million.

6. Scale Investors

Scale Investors is the first and only Australia’s female-led angel investor network that only invest in female founders’ businesses.

Their network has 250+ angel investors. Since 2013, the network has invested over $12 million in 28 startups in Australia.

If you’re interested, apply here.

7. Sydney Angels

Sydney Angels is one of the largest angel investors network in Australia. They typically invest 50/50 alongside their own $10 million VC fund in promising startups.

They’ve also partnered with the leading incubator Cicada Innovations which we discussed in our article on the top 9 accelerators in Australia here.

The network invest anywhere between $200k and $500k for pre-money valuations of $1 million to $5 million maximum.

If you think your startup fit in their criteria, apply here.

More Free Resources For Australian Startups

We have lots of free resources for Australian startups. Have a look at our articles below:

• Australia’s Top 5 Government Grants For Startups [2021]
• How To Find Angels in Australia (+ Top 7 Angel Investors Networks)
• Australia’s R&D Tax Incentive: Is Your Startup Missing On Free Money?