A private individual who directly invests some of their assets in start-up and expanding private firms is known as a business angel. They are typically high-net-worth individuals with prior business experience. Business angels can make individual investments or participate in syndicates, where one angel often assumes the leadership position.
In addition to funding, angel investors offer the entrepreneur contacts, company management expertise, and talents. Angel investors with experience are aware that they might have to wait for a return on their investment. As a result, they may be a reliable supply of “wise and patient” capital.
Angel investors in the business are crucial to the economy. They are, behind family and friends, the second-largest source of outside capital for newly founded businesses in many nations. They play a bigger role in advancing technology and providing risk capital, which helps the economy expand.
EU nations must develop resources to encourage business angel investment. For private individuals that are eager to invest in businesses, they should establish incentives. The use of public funding for joint investments with business angels should be part of this.
The European Commission supports business angel investments, particularly those that span borders, and works with venture capital firms to help other EU nations learn from successful models. The Commission also encourages best practices in training for investment preparation.
The study’s foundations include survey results, interviews with business angels and entrepreneurs from 33 different European nations, and documental research. It provides an in-depth analysis of their monetary and professional conduct in both regional and global venture capital markets in Europe. In addition, the publication offers novel business angel investment plans, bepracticesses for support measures, and policy initiatives to help business angels.
We produced a research in 2017 that evaluated current venture capital and business angel tax incentive programs, examined and evaluated prospective new program designs, and made policy suggestions for the future.
In industries, areas, or EU nations where business angels are still underrepresented, this manual explains how to assist their investments and co-investments.