ROLE OF BUSINESS ANGELS.ppt

ROLE OF BUSINESS ANGELS CONTENTS WHO ARE BUSINESS ANGELS Definition Business Angels are private investors who invest in unquoted small and medium sized businesses. They are often businessmen and women who have sold their business. They provide not only finance but experience and business skills. Business Angels invest in the early stage of business development filling, in part, the equity gap. [EBAN website] WHO ARE BUSINESS ANGELS ANGEL CAPITAL MARKET Definition of Private Equity Private equity investing may broadly be defined as investing in securities through a negotiated process. The majority of private equity investments are in unquoted companies. Private equity investment is typically a transformational, value-added, active investment strategy. It calls for a specialised skill set which is a key due diligence area for investors assessment of a manager. The processes of buyout and venture investing call for different applications of these skills as they focus on different stages of the life cycle of a company. [EVCA Website] ANGEL CAPITAL MARKET ANGEL CAPITAL MARKET ANGEL CAPITAL MARKET ANGEL CAPITAL MARKET ANGEL CAPITAL MARKET TYPES OF ANGEL STRATEGIES TYPES OF ANGEL STRATEGIES KEY SUCCESS FACTORS SUPPORTING INNOVATION SUPPORTING INNOVATION BUSINESS ANGEL NETWORKS BUSINESS ANGEL NETWORKS TOP 10 LIES BUSINESS ANGELS 10 TIPS FOR ENTREPRENEURS WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@ * Christophe Beaud Page * 1. Who are Business Angels 2. Angel Capital Market 3. Types of Angel Investment Strategies 4. Key Success Factors 5. Supporting Innovation 7. 10 Lies and 10 Tips 6. Business Angel Networks Page * Expectation of high financial return Playing a role in an entrepreneurial process Satisfaction of being involved in an entrepreneurial firm Motivation Highly important Of lesser concern Exiting the firm Of lesser concern Important Involvement in mgt Strategic Active, hands-on Monitoring after inv. Compreh