Fundraising: How to Choose the Right Business Angels?

Published 7 Dec 2021 at 12:01

So far, we have talked about investors in general or more specifically in venture capital. Today I offer you a Capsule with a focus on business angels (BA).

These are individuals who invest a portion of their personal money in start-ups. They can do it in a very structured, even professional way, or in a more relaxed way.

The good news (or the problem) is that there are more and more of these passionate technology investors. 💰 You are probably asking yourself the following questions: “How do you spot a good business angel? It’s perfect because it’s the topic of the day!

Here is a quick summary of the points discussed in the video. This content is not intended to replace the video but to be complementary.

The investment motivations for a business angel

– Long-term return on investment

– A favorite project – an interest because of his background or his personal affiliation

A BA can be an entrepreneur, a former entrepreneur, a start-up employee, an expert …

Just like for an investor in a fund, do not hesitate to look at his past investments as well as his professional career to understand if your project meets his motivations.

The four main criteria for choosing your business angel:

1 – Business expertise

– His professional background must be in line with your start-up

– He must be able to understand your company and your vision correctly

– It must add value to your company’s strategic decisions or vision for your product

2 – Its network

Business angel must be able to bring you its network to save you time and help with the development of the company.

This network can consist of:

– Potential clients

Talent: recruit new assets for your development

– Other investors: now or later!

3 – His reputation

The ecosystem is often an echo of the relationship between investors and entrepreneurs. You can find out from other investors or entrepreneurs he has already funded. If the reputation is:

Positive, it is reassuring for your relationship afterwards but also a guarantee of credibility with your key partners (other investors, customers and talents)

Negative: a sign that BA may be too involved in the operation and be a source of negative pressure or waste of time for you. It can also deter other key partners.

4 – The agreement

You need to ensure alignment and good understanding with your investors to build a healthy adventure and work under good conditions.

Some investors have a more professional investment practice than others. Going to experienced investors who have already been financing several companies for some time reduces the risk of having a bad experience.

Content curation

Each week, I share content with you to delve deeper into the covered theme. 🗞

Where to find business angels? Good news, I have some documents to share with you.

Here are the largest communities of French business angels:

– French founders

– AngelSquare

– WeLikeStartup

– Female business angel

– Super Capital VC

→ Here is a list of some great names from French BA!

Finally, I recommend that you listen to the testimony of Marie Outtier, co-founder of Aiden.ai and business angel, in the Oui Are New York podcast, which begins at minute 25.

The last word

A good business angel is a great asset in the development of a start-up business. The latter can be a source of good advice, opportunities or even a guarantee of credibility for your business.

Beware, however, of all the “wanabee” entrepreneurs who finance businesses as a hobby and who bring nothing but cash. You are developing the project of your life, so be sure to surround yourself with people who are involved, but above all professionals.

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