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'Angel investing' can help startups, boost PHL economy — experts

The injection of capital by private individuals to startup businesses or angel investing is seen to boost small and medium enterprises (SMEs) in the Philippines, experts said.

"Angel investing and venture capital push economies, and with more educators from abroad who teach business, this will help a lot of small and SMEs," Maria Francesca Tan, CEO of angel investing group MFT Group of Companies, said during a media round table on Saturday.

Angel investors are private investors or individuals who provide initial capital support to companies and businesses.

For his part, international thought leader for angel investing Jordan Green said that the country's consumption driven economy is an opportunity for angel investing.

"Strong consumer habit in the Philippine means you have more opportunity to support businesses," Green said.

"Driving more money to this venture will creates jobs, therefore generates more wealth," he said.

However, he said the challenge for such business activity is that it is not formalized.

"The government needs to support angel investing. We need government regulation to erase the doubts of those who want to engage in this venture," Tan said.

Green took note that in the Philippines there are only 10 to 15 entities engaged in angel investing.

He added that since angel investing is a private activity the risks are high.

"To enter angel investing, you need to invest only 5 to 10 percent of your portfolio because of the high risk. It shouldn't be your primary investing activity," Green said. — VVP, GMA News