Business Angel: What is it?

Entrepreneurship is a unique experience that attracts a large number of people, young and old. Being your own boss and being completely independent is the dream of many. The feeling of personal satisfaction, of decision making power… it’s priceless! However, sometimes you have to finance yourself and call on business angels.

finance

Be careful, not everything is good in entrepreneurship … and one of the first problems when you want to start this “crazy” experience is related to the need for financing. Funding is often needed to make a dream come true, which can be done in a number of ways. In any case, you have to answer the question: “How will I be able to get the necessary funds? », If we think about personal funding, love money, contests, grants, loans of honor or even investment companies that believe in your project and agree to lend you money. Nothing is less certain… There are different solutions for finding capital that meets specific needs.

Use Business Angels

Many companies use business angels to start up. The latter are generally real enthusiasts of the entrepreneurial adventure! They decide to invest a part of their money in a company they believe to be innovative and have good growth potential. So they provide financial aid, but it doesn’t stop there.

Some do not want to be more involved than this and do so for tax exemption purposes with the opportunity for future profits but the risk of losing everything. Others provide their skills, experience and network to the entrepreneur. They are very involved in the project and dedicate part of their time to the success of the company.

The relationship between a project leader and a business angel is based on transparency of intentions and trust: it is a true long-term commitment, typically at least five years. The success of the project is then a real objective that is common to the entrepreneur and his Business Angels.

Project Selection by Business Angels

You may be wondering: How do Business Angels choose their “Fals”?

What matters most is the potential of the project and the personality of the entrepreneur or even the entrepreneurs. To get funded, it doesn’t have to reach a good level of development or be very innovative technologically, even though some are fond of it.

It is a question of having a clear business plan, in simple language that is easy to understand, for business angels to explain in 5 minutes. In short, convince them by going over the essentials and presenting the benefits of your offer compared to the competition. You need to be punchy and concise. There’s no point in laying the best plans if you can’t convince yourself.

You should also have a good rapport with them as they are betting on you. We often neglect the presentation of project leaders when it is necessary. It is on your resilience in the face of difficulties that they are betting on as well as on your ability to communicate with them in time.

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