These are people who invest in a business from scratch, that is, at the initial stage of the project. Business angels are rich people who have enough finances and can afford to risk some of them. If you manage to attract such a person to your project, then, most likely, the funds they contribute will be enough to stop looking for other investors.
In exchange for financial resources, a business angel receives a share in the organization and, in most cases, has the right to vote at the shareholders' meeting. Such a person expects a high return on their investment, so the financial justification of the project should leave no room for doubt. A business angel may pursue different goals. Some want to receive a stable profit from the activities of a successful company, while others are focused on the subsequent resale of their share at a profit.
How to Find a Guardian Business Angel
Examples of investment in stockholder data package business by wealthy people include large companies such as Apple and Amazon.
A business angel can be found on specialized Internet resources. In the modern world, there are communities offering catalogs of projects and potential investors. An example of this is the portal "Angel List". You can also use the help of the Internet Initiatives Development Fund.
The Russian venture company annually publishes an up-to-date rating of private investor activity. In addition, news about deals and ratings of venture investors are published on specialized resources and in the media such as Firrma, Rusbase, IncRussia, etc.
The best option would be a business angel who is an experienced person in your business area. Such an investor will not only be able to provide funds for the development of the project, but will also introduce you to the right people, and also consult on emerging issues. Thanks to the participation of an experienced business angel, the chances of the project's success will increase significantly. This type of investment is called smart money.
To find a business angel among potential investors, you need to analyze the person's recent deals. It is best to communicate with an individual directly. For this, you can use his personal website or page on social networks. It would be ideal if you can meet the future investor in person. Find acquaintances who can recommend you and your project.
Benefits of working with business angels:
Financing a business from scratch.
No need to look for other investors.
The company's rapid growth rate.
Consulting support, obtaining contacts of the right people and knowledge in the chosen field from the investor.
A wide range of options in which this type of investment can be used.