Business AngelsWealthy, entrepeneurial individuals who provide risk capital.Further characteristic: risk capital ánd coaching (additional expertise,knowledge and networks)
Business Angel or Informal Investor?• Mostly (former/active) entrepeneurs who have sold their companies• Want Return on Investment, but also “”Kick and Fun””• Hands on involvement• Investments between € 50 k and € 500 k € 100 - € 200 k most common• (pre-)start and expansion• Mostly in the combination of shares and loans• To develop a personal relationship
Bridging the Equity gapTime Need€Start-up Early Growth MaturePre-Seed
How to build a good proposition? IYour product is developed or near completionYou have existing custumers or potential custumersYou’ve invested your own euros and exhausted ohter alternativesYou can demonstrate that the business is likely to grow rapidlyYour business plan is in top shapeHigh return, realistic offer % shares and loan conditionsClear view what kind of investor is sought
Quality of a PropositionWillingnessQualityEntrepeneur?Demand in themarket?Solution?Realise?ExitScalability?DEAL!Coach, advise?
Trends in the business angels market1. Not only start-ups but also growing companies2. Difficult for start-ups to find ba3. Investing lower amounts in start-ups4. Syndication/group investing business angels competing withVC’s5. Governmental co-investment facility’s for start-ups6. Social Investing7. Cross border investing