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From Food Tech Innovation Portal

Business angels

Why to deal with this? An angel investor or angel (also known as a business angel or informal investor) is an affluent, entrepreneurial individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Angels typically invest their own funds, unlike venture capitalists, who manage the pooled money of others in a professionally-managed fund. Apart from investing, business angels often act as coaches for the start-up founders.
When is it suitable/applicable? Angel capital typically fills the gap in start-up financing between "friends and family"—who provide seed funding—and venture capital. Although it is usually difficult to raise more than a few hundred thousand euros from friends and family, most traditional venture capital funds are usually not able to consider investments under EUR 1–2 million. Thus, angel investment is a common second round of financing for high-growth start-ups.
When is it NOT suitable/applicable? Angel capital is not suitable if
  • the requested amount of financing is out of scope for business angels (typically between 20.000€ and 250.000€)
  • the founders are not willing to sell a shareholding in return for financing.
  • the owners and managers of the business are not willing to develop a personal relationship with a business angel
  • the business cannot, or is not prepared to offer the business angel the possibility of a high returnwarning.png"Angel capital is not suitable if
  • the requested amount of financing is out of scope for business angels (typically between 20.000€ and 250.000€)
  • the founders are not willing to sell a shareholding in return for financing.
  • the owners and managers of the business are not willing to develop a personal relationship with a business angel
  • the business cannot, or is not prepared to offer the business angel the possibility of a high return" cannot be used as a page name in this wiki.
What costs are related to it (financial, time effort etc.)? Calculate time to find a business angel , e.g. through personal friends and family, wealthy business contacts, major suppliers and clients of the business or formal angel networking organizations.

What’s the relevant HTE output? Business angels are not at the focus of Hightech Europe. The Food Tech Innovation Portal is focused on knowledge, resarch infrastructure and technologies. However, the partners in your region may be able to help you establish contact to Business Angel Networks.
Whom can I talk to from the HTE team? ZENIT, Agropolis International, TEIN, Qualiméditerranée, TRITECC

DLG, ARC

Relevant internet links Links:
Online databases and tools Tools:
Where to get advice, consultancy? Support
  • National and transnational business angel networks
  • Enterprise Europe Network
  • business incubators
Related innovation sheets European financing instruments (loans, guarantees, etc.) , Venture capital, Financial x feasibility, Financial x development, Financial x launching

Title Business angels
Aspect Financial
Latest Version 04-07-2012
Completed by ZENIT


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Created by Hte zenit on 4 July 2012, at 15:00