SOURCES OF EXTERNAL FINANCE - Business angels
Business angels - Usually high-net worth individuals who invest either directly or via network syndicates into start-up businesses in return for a share of the business i.e. percentage equity.
Can be seen as high risk as the business is not established but angels will assess the potential for reward.
The entrepreneur will need to demonstrate a good understanding of their business model and present a detailed business plan in order to secure the investment.
BUSINESS ANGELS MAY ALSO OFFER SUPPORT AND EXPERTISE,
ADVANTAGES OF BUSINESS ANGELS
BEST FOR .... newer and possibly high risk, early stage or high growth business.
Can be seen as high risk as the business is not established but angels will assess the potential for reward.
The entrepreneur will need to demonstrate a good understanding of their business model and present a detailed business plan in order to secure the investment.
BUSINESS ANGELS MAY ALSO OFFER SUPPORT AND EXPERTISE,
ADVANTAGES OF BUSINESS ANGELS
- They are normally very knowledgeable and experienced in business matters; may act as a mentor for the business, providing advice and guidance.
- May require some form of equity (share) which gives them a measure of control.
BEST FOR .... newer and possibly high risk, early stage or high growth business.
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