Tuesday, October 19, 2010

Business Angels - are they?

An angel investor is a private person who invests capital and expertise in unlisted companies. Affärsängelns goal is to develop the company so that it becomes attractive to private equity firms and other buyers. Often avoids business angels to advertise their existence. They might otherwise be overwhelmed by requests. Therefore we are often in touch through various types of personal or formal network.

How will you find an angel investor and the manner in which you must prepare yourself?


• Be in good time if you foresee a situation of increased demand for capital in the business. There is no good starting to negotiate with an angel when the liquidity crisis is a fact.

• Some ways to find business angels is to participate in the CONNECT activities, contact the Swedish Venture Capital Association, your bank or accountant.

• The business plan is an important document when the risk the investor should assess your business. Customize it so that the reader can judge the potential, risks and potential for good business at risk the funding of the company.

• Emphasize and describe the people who are in and around the company. Business angels are much more focused on you as an entrepreneur and your environment than what the banks are.

• Before you connect you should examine the nature of the business as a business angel specialize. It is of course preferences on sector, geographic location and size but also the phase in the life of the company that the investor prefers to invest in.

• Remember that you are the business angel offers a business opportunity. It is you who sit on company growth and thus has better hand for the negotiations.

• Perform a self assessment of the company so that you get a picture of what is reasonable requests when to initiate negotiations.

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