How Angel Investors Are Powering Startup Growth in Emerging Markets
Syndicates are helping angel investors support early-stage startups and build stronger local ecosystems.
Angel investors are playing a growing role in supporting startups, especially in emerging markets. By joining syndicates—groups that pool money and knowledge—these investors help young startups grow while making investing easier for newcomers.
As an active angel investor for the past decade, I’ve supported startups around the world and in Kazakhstan, my home country. Here’s how angel investors and syndicates are changing startup ecosystems.
Why Angel Investors Matter for Startups
The global startup market took a hit in 2023 when venture capital funding dropped to $285 billion—the lowest since 2017. While full recovery hasn’t happened yet, the first quarter of 2025 showed signs of improvement with $113 billion raised, including a $40 billion deal for OpenAI.
Early-stage startups were hardest hit by the downturn. But in emerging markets, local angel investors helped keep the ecosystem alive. In Turkey, nearly 60% of venture funding in 2023 came from domestic investors. In Kazakhstan, local backers took part in 80% of deals, with more than half going to very early-stage startups.
Angel investors typically provide smaller checks—starting around $10,000—but they fund startups when few others will. In Kazakhstan, business angels made up 50% of all venture deals in 2023, outpacing traditional venture funds.
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The Power of Angel Syndicates
Most angel investors are experienced entrepreneurs who invest part-time. But many don’t have the time or expertise to vet deals on their own. Syndicates solve this problem. These groups are led by experienced investors who find promising startups and invite others to join with a minimum investment.
At MA7 Angels Club, the syndicate I launched in Kazakhstan in 2024, we require a minimum check of $10,000. As the lead, I personally evaluate each startup and invest my own money—between 30% to 50% per deal. This approach builds trust and attracts more angel investors.
One well-known example is Israel’s OurCrowd. Despite tough market conditions in 2022, it remained one of the top investors in the country and has facilitated over $250 million in startup funding since it launched a decade ago.
The COVID-19 pandemic also sped up the rise of syndicates. With digital tools making it easier to invest, angel investors are now joining syndicates faster than ever.
What Makes a Strong Syndicate?
In Central Asia, syndicates like MA7 Angels Club are growing quickly. In just six months, our group grew to 100 members and invested over $2 million in startups like Pioneers, Zeely, Zibra.AI, and Hero’s Journey. Here are three key lessons:
- Trusted leadership: Every deal is carefully reviewed and led by someone the group trusts.
- Personal commitment: When the lead investor puts in significant personal funds, it boosts confidence.
- Easy investing: We use platforms like Sydecar to simplify the process. Investors sign up once and can join future deals without extra steps.
The Future of Angel Investing
Angel investors aren’t a complete solution to funding challenges in emerging markets, but they are a vital part of the startup journey. By supporting early-stage companies and building syndicates, angel investors help create more opportunities and drive faster ecosystem growth.