A Business Angel is a specific type of investor, who will provide capital and support for startups and entrepreneurs (so called Smart-Money). Usually they act as individuals investing their own money into early stage companies (startups). They tend to bare high risks, as they will expect very high returns for their investment after 3 – 10 years.
Business Angels will actively support their portfolio companies, in order increase the chances of success and for good returns. This support ranges from financial, production, network to interim management services and is very different from Investor to Investor.
Angel investors often have made their way as entrepreneurs or through amazing careers. Having experienced both successes and failures, they have important learnings to share. Business Angels are very important for the overall economy because they fill a funding gap. Angels therefore have a strong influence on innovation, growth, and prosperity.
An estimate of 10% of the Business Angels are organized through Business Angel Networks (LINK EBAN), which are spread all over the world, the rest will stay “undercover” but closely connected to the startups scene, as they visit important events, have deal-flow agents, advisors and co-investors working closely with them.
Business Angels will usually invest between EUR 20.000 to EUR 200.000,–.