For a few years now, the concept of business angels is no longer as unknown as before. However, many people still do not have clear ideas about what this figure implies.
If you have an eCommerce, or a business or venture in general, did you know that these people could help you get off the ground? We are going to tell you everything you need to know about them.
What are business angels?
We could say that a business angel is something similar to a mentor. But the truth is that it goes further. The concept of him leads us to talk to you about a person, whether physical or legal., which provides its financing and/or experience to new entrepreneurs. Obviously, you are not doing it selflessly, but rather the goal is to make a profit in the future.
In other words, and giving you an example so that you understand it better. Imagine that you are an entrepreneur and have opened a company. But since you are starting things are not going as well as you would like, although you persist. An entrepreneur notices your work, your company, and decides to be your "angelic investor" investing money in your company and, also, helping you understand the market and make the right decisions so that you start to be successful.
Well, that is what business angels would be, people who have experience and money, and who use it so that the businesses they "sponsor" are profitable for both of them.
Characteristics of business angels
Based on everything we have told you so far, you may be clear about its characteristics. But to give you a summary, they would be the following:
- They invest their capital, their experience and also their time in helping to build that business in which they believe.
- They can make their own investment decisions. That is, who to invest with and who not to. Sometimes, they can also make decisions in businesses that help.
- The companies in which they invest are usually not related to them in any way, but rather They are completely anonymous.
- Their goal is to make the business profitable.
- In exchange for your money, time and experience They hope to earn a future profit.
Advantages and disadvantages
There is no doubt that having a private investor who, in addition to supporting you with their money, does so with their experience, helping you in the day-to-day running of the business so that it grows like wildfire is a positive thing. But how Everything in life has its good things and its bad things.
Therefore, although a priori it may be a good option to think about looking for business angels to help your business, when the pros and cons are put on the table, things change.
It is clear that the benefits you obtain from these investors are many. First, because you can learn from people who are successful and who can introduce you to many contacts. Let's say you will be "someone" in the sector under their tutelage.
Your own business will grow much faster than if you built it alone. By having this experience, the decisions made will always be the most effective and precise. And by the way You learn how everything should be taken.
And since money is not the problem, because you will have someone behind you who can contribute capital, day-to-day life goes much more smoothly.
But of course, Is everything really so beautiful? The truth is that no. First, because it is not easy for a business angel to notice your business. What's more, they will never pay attention to those who are not going to bring them any benefit; They will go big, to those innovators and creatives who they see potential. Something like a "diamond in the rough."
Furthermore, it is clear that if you start a business it is to be your own boss. On the other hand, with a business angels you will not be one, because part of the control of the company will belong to that person. Yes, she is the one who understands the most. But it may do things differently than you would want to do them.
It is clear that putting the good and the bad on the table to make the final decision is the best. But you always have to approach it from an objective point of view so as not to get your hopes up that later hide discomfort (for example, imagine your business with millions of orders but without being able to decide what the packaging will be like because the business angel has already decided).
Where to find business angels
If after weighing the idea you think that a business angel would be good for your business, you have to get to work. It is not easy to find them, much less sell them your idea so that they see its potential.
But if, in addition to not being easy, you don't know where to find them, the topic becomes tricky.
Therefore, here are some sites that you could look at to find someone (or several) interested in your business idea.
Network of private investors and family offices
This name was what the IESE Business School gave to a platform it created with the aim of uniting investors and entrepreneurs.
Thus, Entrepreneurs can present the idea to potential business angels and they make the decision (or ask for more information) if they are interested.
Business Angels Association
Also known by the acronym AEBAN, this association was created in 2008 to promote the activity of business angels (and at that time make them known).
It currently has more than thirty investor networks.
BCN Business Angels
It is an investment forum in which, as in the first case, the objective is to unite investors and entrepreneurs.
You are right, In this social network you can also find profiles of business angels. This way, even if you don't contact them first, if they accept you, they could see your posts and become interested in your business if they see potential.
Of course, it will not be easy for them to accept your contact.
to find them, You can choose to search for business angels in the Linkedin search engine or find articles that talk about some profiles and add them.
Have you ever heard of business angels? Are you of the opinion not to miss the opportunity if it presents itself to you for your business or do you think it is better to go it alone? We read you in comments.