Austrian Investing Report 2022
With the Austrian Investing Report 2022, the pre-IPO investment activity in Austria was comprehensively examined for the first time. The knowledge gained now provides information about the investment motives and the behavior of both anglers and institutional investors. The report is intended to contribute to the design of conducive framework conditions for innovative start-ups. The order was placed jointly by the Austrian Angel Investors Association (aaia), the Austrian Private Equity and Venture Capital Organization (AVCO) and Austria Wirtschaftsservice GmbH (aws).
Over 82 percent of the investors surveyed named the business model as a decision-making criterion for investments, and almost 73 percent named the technology. The main motive for investors is the return (21 percent). Supporting the founders (18 percent), enjoying working together (17 percent) and passing on know-how (12 percent) are also mentioned as motives not much less frequently. “The high focus on investments in Austrian growth companies is quite surprising. More than 56 percent of the shares are held in Austrian companies. That’s positive and important for the location,” says Dr. Rudolf Dömötör, Director WU Business Incubator.
It is also interesting that according to the report, angel investors diversify more between individual forms of investment than institutional investors. Around 21 percent of the invested assets are in startups, scale-ups and spin-offs, 31 percent in real estate, 21 percent in stocks or bonds and 14 percent in SMEs and existing companies. Institutional investors, on the other hand, act with a stronger focus on startups, scaleups and spin-offs. These groups of companies account for around 77 percent of their invested assets.
Read the full report below (in German).
During a recent panel discussion featuring Brigitte Baumann, EBAN President Emeritus; Marta Huidobro, AEBAN Vice President; Guri Koiava, Co-Founder at Axel, Sona Veziryan, Director at BANA Angels, and Selma Prodanovic, EBAN VP, several key strategies were identified to increase women’s participation in BANs.
- Awareness Building
There needs to be greater awareness of angel investing, particularly among women who may not have heard of this investment opportunity. Additionally, it is important to raise awareness that angel investing can be started with a smaller investment of time, money, or knowledge.
- Joining a network
Networking is crucial, as it allows for the sharing of risks, responsibilities, and knowledge. Investors should contribute with what they know. They do not need to know everything, as someone else from the network can support them. Furthermore, networks allow for smaller co-investments, which can help build confidence in women investors who may be starting out. Diversification of investments across multiple businesses can also help reduce risk.
- Conscious Investing
Investing in sustainable businesses can be a good strategy to attract women investors who are often more interested in investing in companies with a deeper purpose. Flexibility of time is essential, as women (still) may spend more time taking care of their families. It is important to note that 6 pm to 8 pm is the worst time for women to participate in BANs, while morning might be a good solution.
- Capacity building
Education programs can be effective in attracting women to angel investing, as women tend to invest when they are educated and knowledgeable on the topic. Learning communities that provide a safe space for new investors to ask questions without fear of being viewed as ignorant can also help build confidence.
- Diversity benefits us all
To increase women’s participation, it is essential to let the whole network see the benefits of having women on board. Women-only groups can be an effective starting point for new female angels to learn and grow their confidence before investing in mixed-gender networks.
- Cross border investment and exchange
Finally, collaboration between networks in the same region can be useful, with dual membership being a possible strategy.
In conclusion, achieving gender balance in BANs is essential to ensure gender equality in the business world. By increasing women’s participation in angel investing, there is more money for everyone. To achieve this goal, greater awareness of angel investing is needed, along with networking opportunities, education programs, and flexibility in time. Creating safe spaces for women to learn and grow their confidence can also be an effective strategy. Gender equity requires adapting to specific needs, which can help achieve gender equality in the end.
You can rewatch the entire session below:
