references
Entrepreneurship
UP-TO-DATE
How a Business Angel is born
There are many active or retired entrepreneurs, company executives, representatives of family offices and other people with financial capabilities who are interested in startups with a high growth potential. These are people with a vocation to become Business Angels.
According to the Investing in Private Companies study of HBAN* and EBAN**, Business Angel (BA) investors are high net worth individuals who provide smaller amounts of finance at an earlier stage than many venture capital funds are able to invest. Investors are entrepreneurs, directors, family offices and venture capital funds representatives with experience in creating and running companies.
kets, providing capital, experience in business management and participating in the management team to support the decision-taking process.
the angel investors; and active involvement in the company. ESADE Alumni offers the tools and methodologies for systematising and properly managing the various stages of the start-up investment process to all alumni who would like to become BA. Specifically, through its Business Angel network, ESADE BAN, awarded in 2014 as best Business Angel network by the Spanish Association of Business Angels (AEBAN) as part of the Second National Congress of the Spanish Association of Business Angel Networks. “To be a private investor you must remember that it is a matter of chance, and that you must diver-
Motivation
Recent studies in both the United States and the United Kingdom have indicated that angel investing can generate significant returns through portfolio investing. Angels do not necessarily measure success purely by return on investment. An individual investor determines success according to personal interests and needs. And that the rate of return improves with the following three core factors: increased due diligence prior to investment; experience of
Benefits
BAs usually contribute much more than just cash and will often take non-executive board positions in the companies in which they invest. They thus facilitate the growth of projects in highly dynamic mar-
* The European Trade Association for Business Angels, Seed Funds, and other Early Stage Market Players ** Halo Business Angel Network
APRIL--JUNE 2015