Who are business angels and whether they seek
His Work Educational Program / / December 19, 2019
Who are business angels
So-called private investors who invest in promising, in their opinion, developments and projects.
The term "angel" in this sense appeared in the beginning of the XX century in America. Then this word meant rich theater enthusiasts who have invested money in the theater. These were risky investments as profits angel received only if the setting was becoming successful.
Now investors are more interested in IT-developmentsBut this does not mean that other entrepreneurs have to give up.
The business angels differ from other investors
According to Alexander Loktionova, Director General LOGA Group and founder of the investment Forum Seed Forum in the European part of Eurasia, conditional investments can be classified into two categories:
- Structured Capital. This money funds, which have certain eligibility criteria and the obligations to investors.
- Own funds of business angels. These people do not depend on third-party claims and decide how to deal and when to exit from the project.
Accordingly, the communication with the business angel can be quite unpredictable. He not only investors, but also a man with his opinion, Desires and personality.
Maxim Arkhipenkov
Project Founder SmartMerch.
There is a notion among the startups' venture godfather. " He gives the money and takes control of the management of the company, it intervenes in the case, that is not conducive to development. Such investors often. Enough to see reviews: 95% faced with similar proposals.
Should I look for a business angel
Paul Lisowski, CEO «ADA Russia", among the advantages of working with a business angel highlights:
- Accelerating the development of the project. In many cases, no money to implement the idea is almost impossible, especially when it comes to production or development.
- Get important contacts and ties, Assistance in sales - but only if the angel really interested in active development of the project.
The list of disadvantages with the somewhat longer.
- Interests of an angel and the entrepreneur may vary.
Paul Lisowski
For the vast majority of angels key input into the project idea - it's the next exit with a good cartoonist. Dividend history of not much interest. The entrepreneur can also get sick to work and play vdolguyu, step by step, moving the company to a bright future. And the better it gets, the less you want to sell it.
- The new participant brings new rules. Be prepared for the appearance of accountability, bureaucracy, a large number of papers and so on.
- It increases the risk of new problems. You let in business a man who in fact do not know, and it must be very clearly understood.
Alexander Loktionov
If the project allows profits to reinvest in future growth, it is necessary to do it and not be distracted by the search for investors, while retaining control over your project.
Where to look for business angels
Alexander Pechersky, the founder of the service "NaPopravku" divide these people into two types:
- Professional business angels - it is private investorsInvolved in supporting start-ups on a regular basis.
- Business angels are among friends. And we are not always talking about experienced people in the financing of projects.
Alexander Pechersky
We at one time went to the second path. The first start-up investment "NaPopravku" attracted seemingly by accident. I was talking with friends and talked about our idea with his wife for the business - a site where will be collected all doctors of the city and confirmed by reviews about them.
Friends so liked the idea that they offered to invest their own money in the project start. I do not even think that they have the savings for such investments. For example, in casual conversation, not waiting for the result, we found the first means.
Startup it is important to remember that sometimes people give money, from whom did not expect.
Caves notes that professional investors are more favorable to startupsWho can attest to the idea - even if done on the knee and the first product of the actual sales. The presence of these customers fundamentally change the perception of the project. Therefore, at the beginning of the path is better to assemble a small group of like-minded people in order to formalize the idea and give it at least some start.
With regard to professional business angels, they are not so much in Russia, but learn about them just enough. For example, business publications often write about their dealings with companies. Of course, the list of investors on a silver platter no one will bring you, even though the ratings are drawn up periodically. So it is necessary to conduct some research. The easiest way - participation in specialized investment activities.
Alexander Pechersky
After the first round of investment, we have turned to professional business angels and venture capital funds. I wrote a long time and a lot of "cold" contacts. Looking for people in the public domain, the monitor reports business publications viewed on Facebook, and LinkedIn. Was dozens of emails every day. Completely despaired several times, but then found a new contact or transaction and try again.
How to find a professional business angel
Dmitry Kalaev, director of "Accelerator FRII" advises to follow this algorithm.
1. Make a list of all available business angels
Use all possible sources: ratings (for example, angel List Search for foreign investors and RVC - for Russian), published in the media, stories friendsTo gather the most complete list.
Dmitry Kalaev
In Russia, about their investments in startups announces about 100 business angels. Not all journalists track 100% of transactions, some of the remains are not articulated. So do not hesitate to use these online sources to find a deal with companies with which you work in close segments.
2. actualized list
Note that when the angel for the last time invested. If during the year there were no transactions, perhaps a sign that he was disappointed in the processes in the venture capital market or has run out of money. Actualizes the list, you do not spend time in vain to organize a meeting with a man who does not invest in start-ups at all.
3. Explore the angels support business similar to your
If an investor invested in similar projects (for example, you are doing Children's applicationAnd the angel in the portfolio have a few start-ups for children), it is a good sign.
Please note that we are talking about similar projects, rather than direct competitors.
4. Rank the list of investors in order of priority
Kalaev advises primarily to meet with those who are less suited to you.
Dmitry Kalaev
It is necessary that at the time of the arrival of investors to topu your pitch, presentation and answers to the questions were well developed. If you start with those most attractive to you in terms of business growth, segments, networking, you risk to prove themselves unprepared and lose the opportunity to present themselves to the study of the maximum. At the time of the meeting in order for someone great hope, you have to answer all the possible objections of other investors and be as savvy in all aspects of their business.
5. Look for access to business angels
Find those who will help you get acquainted with the business angel and present it you. A large percentage of your success depends on how investor trust in the man who brought you.
Dmitry Kalaev
Take the time to understand who has already proven itself in the market and can help you. I often encounter with the founders, who after unsuccessful negotiations me as an investor ask me to introduce them to someone else.
Of course, if I had already decided not to invest in a startup, I would not advise to do it to someone else. Most likely, I apparent insoluble problems in the team and the business and have a stop-factors that I believe are essential. Most investors use the rule "did not believe it and I will not recommend to anyone", and such requests you less help.
Conversely, if the investor says he is ready to participate in the transaction, most of all, he can recommend and even a co-investor, and it is quite possible to ask.
6. Find an individual approach
Appeal to business angels should be personal. No "we are looking for an investment, see the presentation." Make it clear that you are accessing with skill.
7. Present yourself properly
Dying startup, the last hope that - a business angel, no interest. Experienced investors do not want to save the drowning. be companyTo which there is a desire to join. And tomorrow is the attachment may be more expensive than it is today, because you are actively growing.
Alexander Pechersky
The most unpleasant - it's constant denials and complete disregard. Investors dozens come daily, or even hundreds of proposals, and not easy to break through them. Do not be afraid and overcome the shame. If you are not persistently write and talk about the project to all the chance to find an investor to zero. The main thing - to wait for one of the most "yes" to 99 "no."
The hardest thing to find first investors. Further acts of mouth. Investors communicate with each other, discussing projects. If your idea or product is cool, you already have the support of the first business angel, the rest will catch up gradually.
What is important to remember
- Weigh the pros and cons before seeking business angel. Make sure that the pros outweighed the cons not to cooperate.
- Communicate more on the business theme. One can never know in advance who will be willing to invest in your a business.
- Search business angel - a lot of work, on which much depends.
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