Halal Angel Network, a networking platform focusing on investment opportunities in the Islamic economy, is looking to tap the start-up industry by connecting angel investors to Halal businesses.
The Halal Angel Network was launched to promote innovation, entrepreneurship and start-ups to tap the largely growing US$5 trillion Halal consumer market that is expected to hit the US$9.71 trillion mark by 2025. Introduced during the COVID-19 pandemic, the network backed by blockchain technology, hopes to help investors, businesses, entrepreneurs and start-ups overcome these challenging times. Targeting 500 angel investors with an estimated net worth of US$500 million, the platform aims to onboard 250 members this year.
“The Halal consumer has been identified for two decades, but since the last decade many have attempted to tap this market through establishing Halal certifications, expos, financial services and marketing, to name a few. But to date, the start-up market remained untapped,” shares Dr Tausif Malik, the founder of Halal Angel Network.
Start-ups from the Halal sector, particularly in key Islamic financial markets, are increasingly becoming a focus of investors including non-Muslim investors as the commercial opportunities in the multitrillion dollar global industry gain appeal. China-based Gobi Partners for example, which manages over US$1 billion in assets, has a fund focusing specifically on start-ups in the Halal economy while the likes of Malaysia’s Ficus Ventures Capital and COPE Private Equity are dedicated to investing only in Shariah compliant entrepreneurship.
Investment focus
Being an entrepreneur based out of India and the US, it only seems fitting that the Halal Angel Network is based in the two countries. The network is not regulated; investors are advised to do due diligence before making investments into certain companies or individuals.
“We have identified sectors such as blockchain, fintech, modest fashion and cosmetics, retail, pharmaceuticals, food cafes and restaurants, processed food and tourism for investments. As Shariah compliant investments play an important role, fintech and blockchain would be the investment focus,” Dr Tausif says.
Halal Angel Network is currently interviewing angel investors for their membership. The number of potential investors being shortlisted was not disclosed to IFN.
The platform is also working on launching two events over the next few months, including one in Silicon Valley.
Sidebar: Halal Angel Network’s investment process
The network goes through a six-step selection process for its potential investees.
Starting off by conducting a showcase event, shortlisted companies are required to present their pitches to investors followed by a Q&A session. Interested investors will form a subgroup for each company where a leader will be nominated to lead the discussions on deal valuation, structure and closure with the interested entrepreneur.
Interested investors will then make a decision if they would like to invest in a particular company while the Halal Angel Network team will take over the reins to execute the deal. For every deal that is struck, the network will regularly monitor the progress of the portfolio companies and send the reports to the subgroup investors.