Boom times ahead for angel financing

Angel investment is also expected to play an important role in the development of start-up companies, it said.

According to the report, since startup companies are small and do not have clear profit models, it is difficult for them to get funding from financial institutions and venture capital companies.

Angel investors can provide a helping hand in the critical stage of development for these companies.

Angel investors are usually wealthy individuals (or occasionally groups of individuals) who invest their own independently earned funds. Venture capital firms are corporate entities that use funds from other investors - sometimes large institutions - and manage that money by investing it in growth businesses.

Li Xueling, CEO of YY Inc, who has more than 10 years of experience in setting up companies, said entrepreneurs need to be patient for getting funding. They should focus more on finding talented employees who will stay with them.

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