Business angels provide capital for new businesses and startups. They invest their own money in amounts smaller than venture capitalists. In addition to funding, business angels also offer guidance, connections, and mentorship to help businesses succeed. They fill an important role by helping new ideas grow into viable companies ready for larger venture capital investments. Business angel activity varies globally, with some areas like Silicon Valley dominating the United States market. Many governments offer tax incentives to encourage angel investing and support entrepreneurship.

1. Business Angels
Prepared by Liza Andriichuk 111-i

2. What is a business angel?
• A business angel is an independent individual who
provides capital for the development of a business
• The influx of capital can help an idea develop into a
viable company and provide the base to begin
producing the product or service proposed.
• This private investor not only provides money, but also
generally is interested in becoming involved in the
project by acting as a guide or mentor.
• They invest their time as well as provide connections to
their larger network in order to help guide
the entrepreneur in the new business venture.

3. What defines a business angel?
Angel investors are easily distinguishable from other types
of investors, such as venture capitalists, through several
factors:
•They invest their own money into the project, less than
would be invested by a venture capitalist
•They make their own decisions concerning investments
•They invest according to the viability of the project, with
expectations of future gains
•Their main objective is to receive a return on their
investment

4. Types of business angels
There are different types of business angels and
their relationship to your business. They can be affiliated;
which can include suppliers, customers, or even
competitors. They can also be nonaffiliated; which means
they are individuals without a previous connection with
your company.
Business angels can be an excellent way for a new
company to gain ground quickly and step into a new stage
of growth. By providing capital and guidance, the
investment can have a substantial impact on the business.
Angel investors essentially provide a bridge
between a fledgling business concept and a company that
is developed enough to receive funds from a venture
capitalist.

5. Geographical differences
Canada
According to the Business Development Bank of Canada, there are 20,000-50,000 angels in Canada. Over 3000 are
members of 35 angel groups that belong to the National Angel Capital Organization (NACO).
China
Prior to 2000, it was difficult for startups in China to find local angel investors. Entrepreneurs such as Jack
Ma of Alibaba Group needed to raise funds from Softbank, Goldman Sachs, Fidelity and other institutions. However, by
2015 several Chinese Angel groups were in operation.
Russia
In 2012, the International Business Angels Assembly took place in the Russian Federation. This was an exclusive event
devoted to private investing into innovative projects in Eastern Europe.
United Kingdom
A study by NESTAin 2009 estimated that there were between 4,000 and 6,000 angel investors in the UK with an
average investment size of £42,000 per investment. Furthermore, each angel investor on average acquired 8 percent
of the venture in the deal with 10 percent of investments accounting for more than 20 percent of the venture.
The UK Business Angel market grew in 2009/2010 and, despite recessionary concerns, continues to show signs of
growth
United States
Geographically, Silicon Valley dominates United States angel investing, receiving 39% of the $7.5B invested in US-
based companies throughout Q2 2011, 3–4 times as much as the total amount invested within New
England. Reaching nearly $23 billion in 2012 in the US, angel investors are not only responsible for funding over
67,000 startup ventures annually, but their capital also contributed to job growth by helping to finance 274,800 new jobs
in 2012. In 2013, 41% of tech sector executives name angel investors as a means of funding.

6. Business angels & Law
• The Romanian law on Angel Investing allows any
individual to become an angel investor in relation to a
micro or small-size company, irrespective of the
company’s net worth or certification. For an investment
to qualify for the benefits granted by the Law, the
following conditions must be met:
(i) the target company should be a limited liability
company (societate cu raspundere limitata), which is
statistically the most common form of incorporation for
start-up companies (over 80% of existing companies);
(ii) the business angel should not be “connected” with the
company;
(iii) the value of the investment should range between
Euro 3,000 and Euro 200,000; and
(iv) the shareholding of the business angel should not
exceed 49% of the share capital of the target company.

7. • Tax relief for business angels
Investments in start-up companies – and generally
in non-listed companies – often carry high risks, and
tax relief has been introduced to compensate to a
certain extent for them. The current tax scheme
offers relief for both income tax and capital gains tax
which have generally been welcomed by the business
community.
In particular, the Law on Angel Investing offers the
following tax breaks:
(i) Business angels are exempt from the tax on
dividends for a period of three years from the
investment.
(ii) Business angels are further exempt from capital
gains tax for share disposals initiated at least three
years after the investment.

8. 15 of the Biggest Angel Investors of
All Time
1. Jeff Clavier - Personally, he's made nearly 20 investments doling out up to $6 million per
startup that intrigues him.
2. David Lee - Lee's biggest solo investment to date was $250,000
3. Benjamin Ling - Also topping out personally at $250,000, Ling made the same list as Lee
although he hasn't founded his own firm--yet.
4. Dave Morin - Capping out at $50,000, Morin splits his time between angel investing and
working with the company he founded, Path
5. Keith Rabois - Personally investing up to $250,000 and with over 50 investments under
his belt, Rabois is part of Khosla Investments and recently invested in DoorDash.
6. Aydin Senkat
7. Ron Conway
8. Fabrice Grinda
9. Jason Calacanis
10. Chris Sacca
11. Paul Graham
12. Jeff Bezos
13. Marissa Mayer
14. Matt Mullenweg
15. Kevin Rose

9. Thank you for the attention!