Business angels play a crucial role as providers of early stage, informal, venture capital and competences at the seed and/or development stages of the business lifecycle. Angel intervention is long-term, active, and may take a variety of forms.
According to The European Trade Association for Business Angels, Seed Funds, and other Early Stage Market Players (EBAN) Business Angels is:
- An individual investor (qualified as defined by some national regulations)
- Investing directly (or through his/her personal holding) his/her own money
- Financially independent, i.e. a possible total loss of his/her business angel investments will not significantly change the economic situation of his/her assets.
- Invests predominantly in seed or start-up companies with no family relationships
- Making his/her own (final) investment decisions
- Invests with a medium to long term set time-frame
- Ready to provide, on top of his/her individual investment, follow-up strategic support to entrepreneurs from investment to exit.
- Respecting a code of ethics including rules for confidentiality and fairness of treatment (vis-à-vis entrepreneurs and other BAs), and compliance to anti-laundering.
Read more: www.eban.org