Entrepreneurs and business angels – Capital.fr

What is a business angel?

A business angel is a person, often a former entrepreneur, who invests his money in a start-up business. In total, according to the France Angels * Association (which brings together 72 networks), they would be 8,500 in France, independent or part of a network such as Investor (300 members), Women Business Angels (150) or Paris Business Angels (125) .

The principle: the “angel” invests 150,000 to 700,000 euros in the launch or development of your activity and in turn enters into your start-up capital. “For the first fundraising, we are under a blocking minority of 33%,” said Benjamin Bréhin, general delegate for France Angels. The creator remains master of his community.

Business angels are not happy to fund them, but offer creators their advice and their connections. Twenty-five of them were persuaded by Pierre Guiu to invest in Orosound, his noise-canceling headset company. “Three are part of the strategic committee,” he clarifies. They are former business leaders, their help is invaluable. We are currently contacting mutual funds. Many of our shareholders know them and they give us good advice. ”

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But beware: only 6% of applicants receive funding. To attract an investor, it is better to present him with an attractive team. “A solo project manager has little chance of success. We prefer a complementarity of skills and personalities,” explains Patrick Cantelli, president of Arts et Métiers Business Angels. Jérôme Galerne, founder of Running Care (a sports coaching app) convinced five networks thanks to his well-structured team: “I am an engineer by training and my two partners are doctors in artificial intelligence and a sports doctor.”

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Future vision

Other key points: the innovative nature of your product or service and your vision for the future. “We sell our shares after five to seven years,” explains Alain Ihle, chairman of Investor. To see if it will be easy, we ask managers about their projects: will they sell, stay, lean on another market player? finally not with contacting multiple networks.Someone’s interest will arouse others.So many chances to walk away with a check!

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Find an investor in 5 steps

1. Filen. Creators submit a file to a network where they describe their project.

2. The first sort. The network makes an initial selection among the projects and teams that maintain its attention. At this stage, more than two thirds of the requests are rejected.

3. Education. The founder has five to ten minutes in front of potential investors to explain his project. A time for discussion and questions and answers follows.

The decision. Business angels position themselves. They confirm (or not) whether they are investing and what modalities have been agreed for their contribution.

5 Closing. The valuation of the company is negotiated and the partnership agreement is drawn up. The funds are paid out. Since the filing of the case, it has gone from at least three to six months.

* franceangels.org

>> Read also – Financing Business Creation: Convincing a Business Angel

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