Often hailed as ‘the savior of London’s fintech scene’ by Business Insider, Errol Damelin stands out as one of the most accomplished angel investors in the startup world, particularly within fintech.
Damelin, who earned degrees in Business Science and Law from Cape Town University and later completed a Master’s in Management at Boston University, has amassed significant wealth through his investments. His most notable venture, the payday loan website Wonga, which he co-founded with Jonty Hurwitz in 2007, netted him £1 million upon his departure in 2013. At that time, Wonga was valued at £300 million and employed over 500 people.
Innovation and financial support are critical to success, a principle Damelin understands well. After leaving Wonga, he shifted his focus to investing in startups. Over the past decade, he has backed numerous fintech companies, such as Nested, Habito, Tide, and Farewill. His early investments in companies like Cazoo (£72,000) and Wise (£48,000) have recently yielded a combined return of £11.6 million, a staggering 9900% gain.
Unlike other high-profile entrepreneurs like Elon Musk or Richard Branson, Damelin, recognized as South Africa’s most successful angel investor, shuns the spotlight and typically invests his own money. He commits 2% of his company’s equity to philanthropic efforts through the Founders Pledge, an organization of tech entrepreneurs that he helped establish. Additionally, he donates to Jewish charities and advocates for increasing the number of female investors to achieve a balanced portfolio of male and female company owners.
Before Wonga, Damelin had already achieved success with various innovative ventures. He transitioned from corporate banking at an Israeli investment bank to co-founding a steel wire business in Israel and later a cloud-based supply chain software company, Supply Chain Connect. This London-based firm supported the supply chains of major companies like Dow Chemicals, DuPont, General Cable, Phelps Dodge, Mondi Packaging, and Corning.
Damelin’s Key Investment Principles:
- Innovation is Crucial
- Offer something unique or present an existing concept in a new way to ensure your business stands out.
- Ensure Scalability
- Your business should be capable of growth. Delegate responsibilities to a trusted team and implement effective processes from the beginning.
- Address Market Gaps
- Identify and solve common customer complaints in the market to improve satisfaction and gain a competitive edge.
- Embrace Disruption
- Don’t just replicate existing models; improve and simplify them. This approach was key to Wonga’s success, offering quick online access to loans.
- Keep Moving Forward
- Avoid complacency after achieving success. Damelin often exits a business once it is established to pursue new challenges, finding excitement in building companies.
By following these guidelines, investors can enhance their chances of success and create impactful, innovative businesses【3†source】 .
