WHAT IS ANGEL INVESTORS?
Angel investor is a private informal investor financing new promising corporate/business ideas/projects, at the same time sharing his/her own knowledge, experience, business contacts. Angel investor invests into high-risk projects, which neither risk capital funds nor banks would agree to finance. Statistical average business angel's investment: EUR 20,000 - 200,000.
WHY ARE THEY WORTH USING?
- It is an alternative source of financing, accessible even to a project of a very high risk, financing of which from other sources would not be available.
- In addition to financing, the investor also "brings along" his/her knowledge, experience, business contacts, managerial assistance, etc.
- No additional guarantees for financing are required, such as security, mortgage, etc.
- Investor assumes part of business risk, thus reducing the other party's responsibility.
- A corporate decision making principle is formed, which improves the quality of business management.