Challenges in Nepal to form an Angel Investors Community

Here are the several challenges in Nepal to form an angel investors community:

a. Limited pool of potential investors: Nepal’s economy limits the number of angel investors, resulting in less funding and a smaller talent pool for startups. As well as entrepreneurship and startups are at a initial phase of believing in the growth.

b. Lack of awareness and understanding: Another significant challenge is the lack of awareness about angel investing and its potential benefits. This knowledge gap hampers potential investors from considering it a viable investment option.

c. Limited existing infrastructure: Support systems like angel networks, legal and regulatory frameworks, and readily available data on startups are difficult to find and still in progress in Nepal. This lack of infrastructure makes it difficult for angel investors to find suitable ventures and navigate the investment process.

d. Exit options limitations: Nepal’s lack of mature venture capital and private equity markets makes it challenging for angel investors to find suitable exit routes for their investments, impacting their interest in early-stage ventures.

e. Building trust and networks: Creating a collaborative and trust-based network among potential angel investors is crucial for sharing deal flow and expertise. This takes time and effort to cultivate.

Despite these challenges, there are promising initiatives underway to overcome them. Organizations like Nepal Business Angel Circle (NBAC) are actively working to build awareness, connect investors with startups, form an angel investors community, and advocate for supportive regulatory frameworks. Additionally, the growing success of Nepalese startups is attracting increasing interest from domestic and international angel investors.