Business angel investors contacts. Business angels

Who are business angels and what do they do?

Today, these are investors who invest their own funds in all kinds of innovative developments and promising projects. They see their task in supporting young companies that introduce innovations in production, trade, and other areas of life.

Business angels invest their own capital in exchange for a stake in a business or acquire a large enough – sometimes blocking – stake to have a voting vote to pass financial and management decisions.

Wikipedia says that Business angel(English) business angel, informal investor, angel investor) is a private investor who invests in innovative start-ups (projects) even at the stage of creating an enterprise, and he himself receives a return on his investments and a certain share in the capital (most often a blocking stake, not a controlling one).

Where did business angels come from?

Investors, who received such a romantic name, first appeared in the 20s. XX century. It is believed that this was the name given to wealthy patrons of the arts who sponsored new theatrical performances in New York.

According to another version, the name was first applied to private investors who invested in promising venture IT projects in Silicon Valley. The first lucky person whose innovative project was financed by a private investor was the American Eugene Kleiner.

An engineer and entrepreneur who decided to start his own business in the production of silicon microcircuits could not find investors for a long time. Big financiers considered the project utopian, and Eugene was already thinking about abandoning his plan. However, Arthur Krok suddenly appeared on his way, who had extensive connections in the financial sector. He helped find the missing amount, and in 1959, having received $1.5 million from a private investor, Kleiner opened his company, Fairchild Semiconductor.

Why do investors become business angels?

The goal of any investment is to get a good income, and in the case of venture projects, it should be maximum, since the risk of losing funds is quite high. Ordinary investors are far from always ready to venture on such an allocation of capital, preferring to invest in financial instruments with a lower but guaranteed income.

Modern business angels, on the contrary, invest in innovative projects, in nascent enterprises, in companies at the stage of formation, which can potentially turn out to be very profitable. As a rule, the "angel" chooses 1-2 new projects out of 10-15 offered, focusing on those that seem to be potentially profitable. It is believed that competent venture investments should bring at least 50-70% per year.

Typically, the return on investment occurs at the time of the sale of a block of shares or a stake in the company. If the project is successful, their cost can significantly exceed the initial investment. You can sell the company's securities on the stock exchange or through closed trading. Investors interested in further business development buy them at the offered price.

The main types of business angels:

1. Lead Investor- this strategy is mainly used by fairly experienced investors who have already completed several transactions and have experience in entrepreneurship. These business angels are actively involved in the life of the company in which they have invested.
2. manager- most often it former employee corporations, which, together with the investment, is trying to find a place for its employment.
3. Not a professional private investor- usually he is interested in the project or New Product, the desire to invest in a new company.

What is the difference between business angels and venture investors?

Both of them invest in high-risk innovative projects, but they do it on different terms. If a business angel always risks only his own money, then venture investors usually unite in a fund that can raise funds from citizens or other legal entities. A prime example such option are venture mutual funds.

In other words, a business angel is a private investor who invests directly in a company, and not through brokers, investment funds, and so on. A business angel usually bears 100% of the risk and the company starts its activities solely thanks to him. A business angel is an investor who believes in a company at the stage of its inception and in every way supports its development by financially accompanying it, probably from here the name “angel” came from.

In addition, business angels invest not only for the purpose of making a profit, but also for self-realization as a person who helps others to stand on their own feet. Many of them take great pleasure in passing on their commercial experience to young entrepreneurs whose firms are still in their infancy.

Portrait of an ordinary business angel

It is believed that this is an experienced entrepreneur of 35–55 years old, who has not only theoretical knowledge about business, but also his own positive experience in implementing new projects. Such an investor has excellent business acumen and can therefore provide the managers of the new company with valuable practical advice.

Angels from the USA usually have an annual income of $80,000-100,000. At the same time, the standard investment amount ranges from $10,000 to $300,000, depending on the type of business, the stage of the project and the field of activity of the young company. According to American financiers, an innovation project is usually invested from $50,000 to $200,000.

History has some amazing examples of ordinary investors becoming successful business angels. First, it's well-known. The $91,000 once invested in it turned into $154 million for the business angel! Thomas Ahlberg, invested $100,000 in Amazon, and received his $26 million. And Ian McGlynn invested $4 thousand pounds sterling, for which he was awarded 42 million pounds.

Are there business angels in Russia?

Almost all Russian "angels" are people who have serious funds and have experience in building a successful business. Conventionally, they can be divided into 3 independent categories.

• People from technology business or science who are looking for innovative projects in a certain area, often for integration into an existing business. They are excellent experts and know exactly what they want to get from their investments. Such business angels are a great success for an aspiring entrepreneur, since the combination of original viable ideas and enough funds to bring them to life usually gives excellent results.
• Representatives of large corporations and groups who do not want to advertise their interest in any developments. They usually look for an interesting project, invest in it, and then transfer their share of the business to the parent company. The firm that is the target of such angel investments is often in danger of being taken over, and its leader is usually trusted to lead the newly created structure within the parent corporation.
• Amateurs are a small category of investors for whom "angel" activity at the stages of "startup" and "seed" is a hobby, not a way to make a profit. They make investments in projects based on personal preferences, or the desire to contribute to the development of any area of ​​activity. Although their investments are non-professional, such projects often turn out to be quite successful.

To search for promising objects, pool capital and work more efficiently, business angels unite in networks. Abroad, their number is in the hundreds, in Russia today there are more than 20. The most famous are: the National Commonwealth of Business Angels, the St. Petersburg Organization of Business Angels and the Moscow Network of Business Angels.

In 2013, Russia began the process of systematizing "angelic" activities: a specialized portal for start-up business angels was launched, and various conferences were held to coordinate the work of investors. Over $100 million was invested in the first year alone. The average size investment is now about $ 120 thousand, with which it is quite possible to start small business.

Today we will talk about a class of investors who invest their personal financial resources into new and growing small firms. They are usually called "informal investors", or " business angels» (business angels). They got such a name, because few people besides them decide to invest in risky projects which are often unsecured.

Most business angels are successful entrepreneurs with significant experience in developing their own business. As well as highly paid specialists in large companies: top managers, consultants, lawyers, etc. The motivation for the actions of business angels can be different - someone seeks to master new areas of activity, someone transfers experience, seeks self-realization in new projects, is confident in the social significance of their activities. However, the ultimate goal of any business angel is profit.

As a rule, he chooses investment projects in accordance with his competencies, main or past activities. Investors can also limit themselves geographically and make local investments. In this case, they choose projects that are within reasonable reach of their place of residence in order to monitor the progress of affairs on a daily basis.

Earlier in previous articles, we partially touched on the topic of when and when you already have a ready-made business plan on hand.

The most famous business angels:
Igor Ryabenky, Altair Foundation (SocialMart, SailPlay, Alloka, HiConvertion, etc.)
Pavel Cherkashin, Vestor.In Foundation
Alexander Borodich, FutureLabs business incubator (MyWishBoard, WishCoins)
Vyacheslav Davidenko, projects - Alytics, Witget
Alexander Vashchenko, projects - Narr8
Alexander Yunyaev, projects - Cashsquare
Alexey Basov, projects - Pruffi, Habrahabr, Roem, Firrma
Alexey Kichaikin, projects – Displair
Askar Tuganbaev, projects - Videomore, Tolkien.Ru
Vadim Asadov, projects - Neurok, AlumniFunder
Vadim Kulikov, Kulikov Innovation Center
Viktor Frumkin, projects - Flocktory
Dmitry Maslennikov, projects - KudaPotratil.ru
Evgeny Zaitsev, Helix Ventures (medical)
Egor Rudi, projects - Eruditor, Printio, LinguaLeo
Mikhail Paulkin, projects - RuTube, Minutta
Murad Sofizade, projects - TravelTipz
Nikita Khalyavin, projects - YaKlass, Professionals.ru, ShopogoliQ.ru
Hovhannes Poghosyan, projects - Onetwotrip, Mainpeople.com
Oleg Mikhalsky, projects - AR2Life, B-152, partner and co-founder of iAaccelerator
Pavel Glushenkov, Investment Director, Inventure Partners
Sergey Zhukov, projects - "Goods from the 90s", "BeriDari"
Yuri Virovets, projects - Clickberry, Actio.tv
Yuriy Oreshin, lifescience projects - Angelico Ventures venture fund
Leonid Volkov, Founder of Projector Ventures, projects - Callaround, Oktodon, Receptol, Domosite, Timeliner, Citrea, DalSlovo.ru, Evrent, SideNotes
Igor Ashmanov, projects - Wada!, Roem.ru, Remparo Filter, Ayayay.ru
Alexander Aivazov, projects - MartMania
Vadim Tarasov, Investment Director at Bright Capital (Doctor at Work, Photo School)
Igor Ustinov, projects - ClipClock
Vladimir Kholodov - Russian million project

With what to go to a meeting with an investor and a business angel?

In one of the articles, we have already considered. Now it's time to prepare for the meeting so that it goes well.

Prepare pitch(pitch - presentation of an idea in order to obtain funding) in three versions - for 3 minutes, 5 minutes and 10 minutes. For more information on how to learn how to write the perfect pitch, I recommend reading Oren Klaff's book "The Revolutionary Conclusion Method". big deals Publishing house "Mann, Ivanov and Ferber". Depending on how much time the investor will give you, present your project according to one of these three options.

Mind Map "What to meet?"

1. Presentation in Power Point or a similar program. Volume: depending on the time allotted to you - an average of 10 slides.
2. Project summary or teaser. This is the first section of your business plan with a summary of the project. This document should be no more than 1-2 pages and be read in one breath. According to venture capitalist and author of the cult book "Startup" Guy Kawasaki, during the presentation you need to explain in the first minute WHAT exactly you are doing.
3. Actually, myself business plan. To write it correctly yourself, use step by step guide.
4. financial model . It is the calculated part of the business plan and should be detailed enough so that you can answer any investor's question.
5. How much investment do you require and your specific offer to the investor. Most start-ups are aimed at great prospects and suffer from megalomania. Ask the business angel for the amount that he can give you. Business angels often give seed investment: to launch a business, to prepare and understand the market, to create a prototype or first prototype. You must have each of the options thought out.
6. Trial Sample. Ideally, before contacting an investor, I would advise projects to develop as long as possible due to own funds. Then you can show something: a trial product, first customers and testimonials from them, sales channels. The more the project is developed, the higher the share of the owner will be. If you came to the fund completely “green”, you will most likely be taken away a controlling stake: 50% plus 1.

All this will be a handy tool to answer any questions of the investor, and you should be able to tell the essence and description of the project without them. That is, you should understand what you offer as deeply as possible. This is possible only if you have worked out your project in detail and made a business plan on your own or in close cooperation with a consulting company. Step by step, you must engage the investor in your vision for the product or service you are creating, show deep knowledge of your market and customers, and demonstrate that you and your team are best equipped to turn your vision into reality. Only in this way will they believe you and invest in your project.

In contact with

Business angels are private investors who provide funding and support to start-up businesses. As a rule, business angels are fairly wealthy people who have their own entrepreneurial or specific industry experience. They offer various forms of financing and support for new businesses at various stages of formation and development, but most often at the stages of the “incubation period” (seed) or at the stage of starting a business (start-up).

The origin of the term "business angel"

The term comes from "theater angels" who were private investors providing the seed money needed to launch a new theater production on Broadway in New York. In return, they received a share of the proceeds from the production.

A report by the Organization for Economic Co-operation and Development (OECD) on financing high-growth companies highlights the important role played by business angels.

Today, business angels are the main source of financing, which helps to fill the gap between the initial stage of development of a business project and, accordingly, initial capital(typically less than $25,000) and the point at which official venture capital funds become interested in the business (typically over $3-5 million).

Another OECD report talks about new trends in the financing of small and medium-sized enterprises (SMEs). He showed that the global financial crisis of 2008 seriously affected this area.

Bankruptcy rates have risen significantly and there has been a severe reduction in the availability of bank financing. While large firms were able to secure funding through means such as bond markets, most SMEs were restricted from getting funds by banks.

There has also been a "dramatic decline" in the growth of venture capital funding between 2008 and 2010.

And at this time, the financial support of SMEs by business angels became especially important.

Although business angels are potentially important, very little data is available about them.

This is partly due to the informal nature of their investment practices, as well as the fact that they prefer to keep their investment activities private.

Portrait of a business angel today

There is relatively little research on the phenomenon of business angels. The definition of "business angel" remains loosely defined, and the terms "business angel", "informal investor" and "informal venture capital" are used interchangeably.

AT interesting article on angels, published in Strategic Change, Weland Ramadani notes that in the early years, companies such as Bell Telephone, Ford Motor Corporation, Apple Computers, the Body Shop, and Amazon all had angel funding.

A typical business angel is a middle-aged man with a secondary education and professional experience. Most of them have experience of working in their own companies or managing enterprises and organizations. They also have a high personal value.

As for the invested amounts. It has already been said that, in general, business angels fill a niche between the owner's equity capital - up to $ 25,000 - and the moment when he becomes interested in venture capital or bank financing - from $ 3 to 5 million.

For example, studies conducted in Australia show such a profile. The average Australian business angel is a middle-aged male with a personal net worth of around $2 million and an annual income of over $180,000. They invest an average of $200,000 in new business ventures and hold between 10% and 14% of the capital in these ventures.

The feature that distinguishes business angels from more formal venture capital investors is the personal nature of their investments. Business angels invest their own money and therefore take on more personal investment risks than venture capital managers.

An interesting touch to the portrait of a business angel in the West. They tend to invest close to home, with most of them investing in businesses that are in their local community, usually within 1-2 hours drive from their home.

Business angels also prefer to invest in private business ventures that have not yet been listed on the stock market.

The high risk of their investment is fraught with potential failure. Typically, they invest 5% to 15% of their assets in new ventures and aim to earn a return of 20% to 30% on their investment.

Motivation of business angels

A study published in the Journal of Business Venturing suggests that business angels rely more on the entrepreneur's individual characteristics when making investment decisions. Entrepreneurs who display a high level of passion for their venture may receive more favorable angel treatment.

However, the study also suggests that differences can be found depending on whether the business angel is older or younger (older people are more likely to perceive passion favorably), and their level of creativity or intellectual potential.

Therefore, entrepreneurs seeking to impress an investor - a business angel, must, as they say, “burn” with their idea.

Here we come to the classification of business angels by the motivation for their investment. Knowing an investor's motivations is the key to a healthy working relationship that can last for decades.

• Family investor. Their motivation stems from an interest in supporting a family member or friend.
• Relationship Investor. The investor is an employee from a previous company or a business friend you know well. This investor may or may not understand what your new company but have a successful experience with you.
• Idea investor. He is very familiar with where your company is aiming. This is the most best type angel because this person supports your idea.
• An investor who has a personal or professional relationship with a relationship investor or an idea investor.
• An archangel investor can be either a relationship investor or an idea investor who has the ability and successful experience of raising money from other angels (and possibly non-angels). They have built a successful company in the same sector or have strong personal contacts with other investors.

They tend to review proposals based on eight broad criteria.

The first four of these include market readiness for new product adoption, new product development stage, how intellectual property is protected, and how likely customers are to adopt the innovation.

The other four factors are the path to market for the business model, the market potential for growth, the relevant experience of the management team within the enterprise, and the validity of the financial modeling.

Most business angels keep their investments in a young enterprise for about 4 years. Typically, they seek to exit their deals through sales rather than IPOs.

Compared to formal venture capital fund managers, angel investors make fewer investments when they lose money, but they often make a significantly higher proportion of investments that either only break even or generate very modest returns.

Also fundamental difference business angels from banking organizations and venture investors is that they invest only their own capital in new projects.

What benefits do business angels provide to companies?

They tend to be very helpful in bridging the funding gap for fast-growing small firms, especially at the incubation or start-up stage. The main contribution is their ability to bridge the gap between initial capital and later investments.

They also help the management of such firms to gain knowledge and experience. In addition, angels have been helpful in their ability to facilitate networking and networking, especially when a firm is in need of additional capital and subsequent funding.

From the point of view of falling into business angels, they can be classified:

1. Typical angels are entrepreneurs with extensive business experience who run their companies. Their capital accumulated throughout their career. They serve as valuable mentors and consultants to the firms that fund them.
2. trend angels. Have less experience than typical angels but invest heavily in latest developments modern technologies. Monitor the emergence of technological innovations on the market. As a rule, they prefer not to take an active part in the management of companies that are financed.
3. Corporate angels. CEOs of large corporations who have been laid off or retired early. Although the profitability of their investments is their goal, they also seek personal motivation when investing. Many of them invest in one company and are looking for a paying position in it, which is often part of a business deal.
4. Entrepreneurial Angels. Successful investors who own and manage own business. Their steady income stream gives them the ability to make riskier investments, but also provide more cash for start-ups. They are rarely actively involved in the management of the new company.
5. Enthusiastic Angels. These investors are usually older businessmen (65 and older) who have small investments in many different businesses and consider investing as a hobby.
6. Angel of angels. They can finance a serious project of another business angel. They often demand a seat on the board of directors, but rarely seek an active management role.
7. professional angels. Work professionally as doctors, lawyers, accountants, etc. and invest in companies in the related field. As a help to a young enterprise, they can provide their professional services at a reduced rate or even free of charge. Professional angels are of great value to receive initial capital and rarely make subsequent investments.

Let's not forget about reverse side phenomenon of business angels. Sometimes it happens that the motivation for investing is the acquisition of an idea, know-how, business, etc. Therefore, taking into account all the risks of attracting third-party capital should be an integral part of the process of finding financing.

Business angels in Russia

There is no doubt that such a trend in business technologies could not but appear in Russia.

In the past few years, both associations of business angels and brave singles have appeared.

Among the associations we note:

• National Association of Business Angels (NABA). NABA has been a member of the European Business Angels Association since 2011;
• Russian Association of Business Angels;
• Siberian Business Angels Association;
• AddVenture Business Angels Fund.

But, as in the West, these associations are more informational, advisory and educational organizations. Individual investors are engaged in real investments.

According to statistics, the main investments of Russian business angels are made in Internet technology projects, mobile applications, telecommunications, IT.

Investment volumes range from 20 to 300 thousand dollars.

According to the results of 2017, among the most active business angels playing in the Russian business field are:

• Alexandra Rumyantseva - 30 transactions from $8,000 to $51,000;
• Vitaly Polekhin (NABA) - 10 deals from $50,000 to $150,000;
• Sergey Dashkov - 10 transactions, each for an average of 150 thousand dollars;
• Andrey Golovin - 7 transactions from 7 to 12 thousand dollars.

Of course, the Russian experience has its own peculiarities.

In exchange for their investment, the angel receives a stake in the newly created company. In Russian realities, this part reaches 80-90%. While in the West this share is much less.

This is due to the high risks in the Russian market, and undeveloped investment technology, and tax features. Although regarding the latter, in the information released by the Government, there are plans to stimulate business angels with various tax incentives and deductions. In 2018, these benefits should be included in the tax code.

If you and a team of like-minded people do not know where to get the missing money for the implementation of an interesting project that promises considerable profit, then you are here.

A business angel is an individual who will support your startup with their finances, knowledge and connections in the early stages of development, and in return will demand a share in the capital of your company.

Unlike large investment organizations that scrupulously study the business plan, data and financial models, he can believe in you based only on his sympathies and emotions.

To do this, he needs to see the potential of the idea, the adequacy and cohesion of the team, the amount of effort and money you have already invested, your own faith in the undertaking. And then he will become a real guardian angel for your business!

Who are business angels and what do they do?

Today, these are investors who invest their own funds in all kinds of innovative developments and promising projects. They see their task in supporting young companies that introduce innovations in production, trade, and other areas of life.

Business angels invest their own capital in exchange for a stake in the business or acquire a large enough – sometimes blocking – stake to have a decisive voice in financial and management decisions.

A business angel (English business angel, informal investor, angel investor) is a private investor who invests in innovative start-ups (projects) at the stage of creating an enterprise, and he himself receives a return on his investments and a certain share in the capital (most often a blocking stake , not the control).

Where did you come from

Investors, who received such a romantic name, first appeared in the 20s. XX century. It is believed that this was the name of the wealthy patrons of the arts, who sponsored new theatrical productions in New York. According to another version, the name business angels was first applied to private investors who invested in promising venture IT projects in Silicon Valley.

The first lucky person whose innovative project was financed by a private investor was the American Eugene Kleiner. An engineer and entrepreneur who decided to start his own business in the production of silicon microcircuits could not find investors for a long time.

Wall Street financiers considered the project utopian, and Eugene was already thinking about abandoning his plan. However, Arthur Krok suddenly appeared on his way, who had extensive connections in the financial sector. He helped find the missing amount, and in 1959, having received $1.5 million from a private investor, Kleiner opened his company, Fairchild Semiconductor.

Why investors become business angels

The goal of any investment is to get a good income, and in the case of venture projects, it should be maximum, since the risk of losing funds is quite high. Ordinary investors are far from always ready to venture on such an allocation of capital, preferring to invest in financial instruments with a lower, but guaranteed income.