Lately, many people talk about business angels, especially when it comes to the business field. What is a business angel and what does he do? All these things will be clarified in this article, so everyone will understand the concept, and, why not, to look for a business angel in order to start a business.
A business angel or an angel investor is a person willing to use its own resources for a start-up business. The resources are not only about money, but also the experience, time and contacts of the investor. The business angel term was used for the first time on Broadway, in order to describe persons who used to offer money for theatrical productions.
Entrepreneurs with small capital needs and who can’t access other types of financing – like bank loans. Even if it’s about an unreleased business, which is still an idea, or it is about a small business, in an early stage, it can be funded by a business angel. The areas funded by a business angel can be various, but the small businesses which aim to have high yield and can cover a high risk rate are much better.
Unlike a business loan, a business angel will never ask for a warranty for the offered funds. More than that, a business angel won as a partner gets personally involved in the business strategy, offering his know-how and contacts. Also, it is good to know that a business angel can invest from thousands to hundreds of thousands euro.
Being a business angel is not a job, so you won’t find these persons in a specific place. There are consultants, intermediate people, which can help you in order to find a business angel who wants to fund your start up. The consultants will help you to:
– Contour your business idea;
– Make a plan or a business structure;
– Choose from a portfolio the business angel you think is appropriate for your business;
– Prepare the required documents;
– Implement the obtained investments.
Investors are often interested to stay in contact with the evolution from a certain field, to guide new generations of entrepreneurs, to use their own experience and contacts.
If this article answered your questions and queries you had about business angels and you want to benefit of this kind of funding, contact us!