Bill Morrow, founder of the Angels Den investor network, says the number of angel investors who have signed up to his network has skyrocketed as a result of a new Singapore tax incentive, according to AsiaOne.

Investment angels typically provide financing to new or fledgling companies, either in the form of debt, equity or some combination of the two. They typically invest in, or lend to, firms that sometimes struggle to obtain bank financing. The issue has become more pressing since bank lending has weakened due to the credit crisis.

The publication’s article says that since the Singapore government rolled out a new tax break on 22 February, the number of angels signing up to his network has risen from only one or two per day to 42 on the day of the announcement.

Since Angels Den Asia was set up in the city state on 1 March, it now counts more than 300 angels, mainly from property and financial services circles here, and 11 companies, including a fish farm, a yoga club, a palm oil factory and three high-tech firms, the publication said.

Mr Morrow attributes the surge of interest to nothing more than a sign of people not wanting to get left behind. Explaining how angels think, he says that they invest with their “fun money” - a small percentage of their wealth set aside for “cars, rugs, cigars, fine wine or equity funding”, the publication said.

To view the Angels Den website, click here.