Business angels are wealthy individuals, private investors, who provide early stage business capital for young companies at the start-up phase or during a level of expansion. Unlike venture capitalists - whose money is often pooled by investment firms, crowdfunding which can consist of a large quantity of small investors with no business influence, or angel groups which can be several business angels collaborating, business angels usually invest a large stake via their own funds.
Business angels are not only valuable for their financial contributions, but also for offering their angel investing and business sector expertise and in many cases, contacts to their invested company. Many business angels have had success and net-worth increase via past work as a small business entrepreneur or in executive positions at well-established companies or corporations.
While some business angels act as mentors and choose to invest in start-up companies either in their know-how within their chosen field, or based on new technologies in that field, many are simply looking for innovative, viable business ideas and good investment opportunities overall. Business angels work with entrepreneurs and companies in various industries - from the Web to real estate to the arts - and often don’t have a prior history with the company that they are investing in. Some may be silent partners that taken an equity stake in the company, some may be larger scale business advisors overall.
Like every stage of investment, whether seed capital, venture capital or business partner, the primary goals of business angels involve a steady deal flow where they start seeing their invested companies succeed and doing what it takes to ensure that success. Instead of using their own money and networks for seeking ownership in the company, business angels are usually more concerned with using their expertise to help make and manage day-to-day business decisions to help get the most from their investment funds.
The Angel Investment Network started in the United Kingdom but now has locations all around the world, including the United States, Canada, Australia and various countries in Europe, Asia and Latin America, helping bridge the gap between business angels and entrepreneurs with a network of sites in over 30 countries. Find accredited investors in your market or abroad in various stages of investment. In Canada, we've connected entrepreneurs from Toronto, Ottowa, Montreal, Quebec, Vancouver, Calgary, Edmonton and more with investors locally and globally.
Angel Investment Network Members can get in touch with business angels who are looking to connect with Canadian entrepreneurs in a wide range of industries. In all cases, business entrepreneurs and private investors alike should do their due diligence to make sure they get the right amount of info for their investment opportunity in order to reduce high-risk potential.