First of all, who are business angels?
They are wealthy individuals with capital who want to invest in startups in exchange for ownership equity in the company. Working with a business angel usually means that the investee additionally receives advice, expertise and connections. For some startups, working with a business angel is a better alternative than trying to pursue bank lending, which is usually difficult due to the risk involved in the beginning stages of company growth. Additionally, Venture Capitalists steer away from seed capital investments and focus on companies in later stages instead.
How do angel investors find companies to invest in?
Often companies are referred by a contact in the network of the investor, they meet at entrepreneurial events or by joining a business angel network. This introduction is key to capture the interest of the investor and to continue the decision process of whether the company should be invested in or not. Usually, the investor will want to see a pitch deck and a business plan to decide if they are interested or not and conducting their own due diligence on the company.
It is important for startups to network in order to meet or be introduced to business angels. A good option for networking are pitch events and getting involved with angel investor networks.
The European Business Angel Network organises 2 large events annually which bring together investors and startups looking for funding. You can find out more on their website.
Our next Space Academy Europe on 16-18th June will be held back-to-back with the EBAN Annual Congress 2021, and 10 selected startups will have a chance to present their pitches to investors at the event. If you want it to be you, apply before 11th April!
As part of the personalised services which the 10 selected companies will receive, SpaceUp experts will provide studies of the companies on their products/services and business model design, intellectual property rights, access to finance and human resources. On 16th June, the companies will have 6 one-to-one meetings with international experts to discuss the findings and ask them questions.