What is a “Business Angel” and how can it contribute to your business?
Posted: Mon Dec 09, 2024 7:12 am
Many entrepreneurs find it impossible to take out bank loans. However, there are other ways to finance projects. One of the best known is to contact Business Angels. A Business Angel is a person who provides an injection of capital, experience and even contacts with already established companies. This is done in exchange for a share in the form of shares and a profit.
Among the characteristics of entrepreneurs who are Business Angels, we can see very clear actions that occur in almost all cases. They usually participate and contribute their women database capital in the development or expansion phase. In addition, they tend to get quite involved in the business, providing a lot of added value. They normally invest in sectors where they have experience and know well.
By their nature, entrepreneurs of this type do not simply seek a return on capital. Business Angels really get involved in the project. However, it should be noted that the investments they make are temporary. Their investments usually last between three and seven years. After this time, they withdraw their capital and profits in order to obtain a return and, in the same way, invest in other projects.
The question now is this: How do I find the right Business Angel for my venture? There are several networks that facilitate the search at national and international level.
A good example is the European Business Angel Network (EBAN), the European representative network that brings together more than 100 member organisations in more than 50 countries. It is estimated that it invests more than eleven million euros a year, especially in financing SMEs. It is the site where investors and entrepreneurs can share their projects.
Among the characteristics of entrepreneurs who are Business Angels, we can see very clear actions that occur in almost all cases. They usually participate and contribute their women database capital in the development or expansion phase. In addition, they tend to get quite involved in the business, providing a lot of added value. They normally invest in sectors where they have experience and know well.
By their nature, entrepreneurs of this type do not simply seek a return on capital. Business Angels really get involved in the project. However, it should be noted that the investments they make are temporary. Their investments usually last between three and seven years. After this time, they withdraw their capital and profits in order to obtain a return and, in the same way, invest in other projects.
The question now is this: How do I find the right Business Angel for my venture? There are several networks that facilitate the search at national and international level.
A good example is the European Business Angel Network (EBAN), the European representative network that brings together more than 100 member organisations in more than 50 countries. It is estimated that it invests more than eleven million euros a year, especially in financing SMEs. It is the site where investors and entrepreneurs can share their projects.