Toggle sidebar

Business Angels?

  • Thread starter Thread starter Jayne
  • Start date Start date
Sort by date Sort by votes
J

Jayne

Hi,

What do business angels do exactly, i've seen their name a couple of times and was unsure of what they did?

Thanks

Jayne :D
 
Never watch Dragons Den, may have to watch one, to see what you lot go on about it for so much :D

Jayne
 
Upvote 0
Business Angels tend to be more proative in the companies they invest in than VC's.

In short a Business Angel will invest money in a company and take an equity stake in it. Many will be available to mentor the entrepreneur. I've sold many companies to Business Angels and VC's and know the rationale of these. In the main, VC's and Business Angels have a similar strategy: "If I ivnvest in five companies and four of them fail, but one is a success, then the one success will offset the four failures". It's known as "risk money".
 
Upvote 0
That was interesting Steve, thanks. I guess you have to be quite a large company for them to be interested in you.

Jayne :D
 
Upvote 0
The deals we're involved in start at (circa) £500k. As such, I don't honestly know muh about the smaller end of the market. I would imagime that there are business angels interested in smaller deals, but I would't know where to start looking.

Bear this in mind though. VC's and Business Angels are MUCH more concerned with the "person" and not the company/idea. If you think about it, you could have the best idea in the world but if you're not cute enough enough in business development then it's going nowhere. As such, when presenting an idea to an investor more focus should be put on your business savvy than on the idea itself.
 
Upvote 0
From what I have heard and seen,

Business Angels tend to be more of mentors, and take an active interest in the business, also extending any kind of support and opening up their networks.

Whereas, VC's are the more serious types, seriously interested in numbers, are more likely to keep you under constant pressure to come up with results. VC's usually tend to hunt in groups.

Ash
 
Upvote 0
You must log in or register to reply here.

Latest Articles

Top Bottom
Back