The main reason for the wealthy investors include in this type of project is the desire to “entertainment”, only later mentioned are such arguments as the satisfaction of being involved in the development of the company, or return on invested capital. Regarding the development phase the company is the largest popular among start-ups “and less of the company has long been operating in the market. In the latter case, cooperation may involve, for example, the development of a particular product or service innovation within the consortium.

Each transaction is different and in detail the process of its conclusion is tailored to the specific circumstances. Sent mostly on the basis of a business plan, the project passes the internal evaluation process. Particular attention is paid to the concept of the project, the competence of managers and expected financial results. – A very important element subject to the opinion of our analysts is the CVs of key project. Team of people, which is responsible for project implementation is one of the main criteria taken into consideration during the evaluation. Of course, at this stage, verify the completeness and authenticity of submitted documents – says Fester.

- The positive outcome of this assessment usually ends in a meeting with representatives of the LBA and the completion of a template prepared a summary business plan, which is then sent to the investors (Business Angels). If the investor reports sent to him their interest in journals, LBA leads to business meetings with investors. Generally, the role of the LBA in this place finishes and winning Business Angel funding is a matter of successful negotiations with the investor entrepreneur – says Cuba Giedrojć the Polish Confederation of Private Employers “Leviathan.”Typically, a conversation with an investor comes in the case of five out of 100 submitted projects, while at the same investment can expect about 1% of cases.

Research shows that the investment time horizon is approximately 5 to 10 years. At that time, actively participates in Angel’s life. This involvement can take various forms. The most common is a member of the Board, to advise in the preparation of a business plan to attract other investors or financial development project monitoring. – The more important factor than the capital investment, the value of property and investor experience, which helps keep the young company’s business. It also offers a network of valuable contacts, which allows you to negotiate better terms with business partners and an opportunity to attract outstanding managers who will work for the company – emphasizes Adrian Fester. – Only the business angel can be obtained not only financial support but also substantive. It is in fact a man of great business experience, which is prepared jointly develop a project in which it engages. This is the only such offer on the market. All other sources of funding (eg banks, funds, stock market) is a capital “nameless”, then we work with institutional partners, and not the individual person with whom the person depends on the success of the new company – acknowledges Giedrojć Cuba.

Of course, the angel of Business does not offer its assistance for free. Most include a stake in the company and provides the ability to influence the management of the company. – Do not be afraid, however, that because the investor has objectives consistent with the objectives of the entrepreneur – wants to expand business and increase its value in 5-7 years. Many examples show that the long-term co-operation, it shall apply to both sides – provides Fester.

Business angels are sometimes the only form of funding at a very early stage of development, sometimes even a vision that puts this form of investment increased risk. That is why the Angels are looking for ideas of business chances of above-average profits. The obvious risk is the risk of failure of the project, such as excessive optimism in its planning, operation of competition, little interest in the market. Despite the risks, the importance of Business Angels will grow continuously.

Has an impact on several factors, most important of which is setting a global economy based on innovation and development of new technologies and intense in recent entrepreneurship.Besides, it suffices to mention such names as Google, Skype, Starbucks, Dell, Yahoo, Apple Computer, Amazon.com, whose stunning success, no one runs a visionary imagination.

Anna Niemczycka

Inwestycje.pl