What’s the difference between an Impact Investor and an Angel Investor?
To put it simply, an Impact Investor is someone looking to invest in businesses that generate profits, but also address social or environmental issues. An Angel Investor is an accredited investor who specifically provides early-stage capital for small businesses.
What is an Impact Angel?
An Impact Angel is an investor who is looking to provide seed-stage capital to social enterprises. Essentially, then, i2i Angels are Impact Angels.
i2i Angels FAQ
Who can become an i2i Angel?
The ideal i2i Angel is a member of the Pakistani diaspora and/or an experienced foreign or Pakistani investor with interest in the impact investing space. He or she must be willing to give not only capital, but also time, thought and effort to the community and the enterprises in which he or she invests.
What types of investments does an i2i Angel make?
The investment type depends on each enterprises and its specific needs. For-profit enterprises are funded through debt, equity or a convertible debt. Non-profits can be granted money that is paid back through revenue sharing programs.
How can I become an i2i Angel?
The first step towards becoming an Angel is to submit an application [click here]. Our team will review each application and respond to you shortly.
What are the goals of the i2i Angel Network?
i2i is establishing an Angel Network to 1) increase the flow and efficiency of capital to seed-stage social enterprises in Pakistan and 2) increase the effectiveness of the Diaspora’s participation in Pakistan’s entrepreneurial ecosystem.
What are the benefits of membership?
There are numerous benefits to becoming an i2i Angel. Members will benefit from i2i’s involvement leading up to an investment. i2i screens enterprises & entrepreneurs from across Pakistan and conducts rigorous due diligence angels would otherwise perform themselves. In addition, members will gain from the network by getting to meet and interact with other i2i Angels, participate in training sessions, and build a community of knowledge-sharing that will benefit i2i’s Angels as well as our enterprises. Most importantly, i2i Angels will engage with young entrepreneurs with exciting & innovative business ideas that address long-standing social/environmental problems.
What are the returns on investment like?
This depends on the enterprise. While traditional angels are often high-risk, high financial return, impact Angels must understand that in some cases, the social returns may be high, but financial returns are below market-rate. In other cases, an i2i enterprise may present attractive financial and social returns (market-rate or above). i2i Angels are involved in the selection process of i2i Enterprises to help find and source high-potential deals.
Why is the i2i Angel Network different than other impact investing networks?
The i2i Angel Network allows Angels to be involved in the earliest stages of a social enterprises’ development, helping them maximize their potential. i2i’s focus on new markets such as Pakistan is also a unique characteristic of this network. Rather than focus on current “hubs” of impact investment, i2i’s Angel Network provides an opportunity to help grow enterprises in untapped markets.
How does i2i mitigate risks for Angels?
i2i connects high-potential social enterprises to funders, who are typically local Pakistani investors, part of the Diaspora, or individuals or institutions with an interest in Pakistan. i2i not only partners with local organizations and networks to find high-potential deals, but also provides services that mitigate the risks for these investors, thereby ensuring their capital makes a large social impact in the country.
Will I meet the other Angels?
Yes! One of the key benefit of the i2i Angel Network is the opportunity to meet with other Angels, learn from each other’s experiences, exchange ideas, and build a community fostering knowledge-sharing which will benefit both the Angels themselves, and the enterprises the Angels are supporting.
The i2i Angel Commitment
Is there a minimum financial commitment asked of an i2i Angel?
Yes, i2i requires members to commit to invest at least $25,000 in i2i enterprises over a two year period. This commitment is more of a scout’s honor pledge, but it ensures our angels are actually investing in the entrepreneurs pitching to the platform.
Are there membership fees?
Yes, for individuals there is an initiation fee of $500 and an annual membership fee of $500. The fees for institutional members are $1500 for the initiation fee and $1000 for the annual membership fee.
What kind of time commitment does i2i need from an Angel?
i2i requests that i2i Angels commit not only capital but also time to the enterprises in which Angels invest. We understand that our Angels have demanding schedules, so the time commitment is flexible. i2i also asks that some Angels become involved in the due diligence process with i2i staff and expert consultants to help in the selection of i2i enterprises.
Can I choose which enterprises I would like to invest in?
Yes, i2i Angels choose the i2i Enterprises he or she invests in. i2i does require i2i Angels to pledge to invest at least $25,000 in i2i Enterprises over a two year period.
Is i2i involved in the negotiation of my investment?
i2i screens, accelerates and provides other services to grow i2i Enterprises. i2i also provides i2i Angels with access to our due diligence and information on our Enterprises. i2i does not assist i2i Enterprises or i2i Angels in investment negotiations.