Where business angels are looking for projects. The history of business angels for a startup. How to prepare a quality presentation

How to find a business angel: step by step instructions

Step #1. Self-identification.

Basically, the search for business angels is carried out by those who have invented something new and received a patent for a new product or service. But the concept of an innovative product is much broader - it does not have to be a technical invention, it can be a new look at what already exists. For example, a cafe with an unusual service or a car wash can become an innovation. It is necessary to answer the question: what is new in the proposal, what are its advantages? Therefore, you need to conduct a minimum of marketing research to help you understand the market. Means can be different: from empirical knowledge to Internet search.

Step #2. Definition of the audience of the product.

You need to decide who will be the buyer of your product. How big is the market for the product you offer? Both an invention and a new approach to an already existing product or service can be applied to different audiences. Business angels are interested in highly profitable projects with more than 29% per annum, otherwise they are unlikely to take risks. Perhaps the algorithm you proposed can be bought by large companies. But their search can take a long time. Another option is to make, for example, a software product and burn it to disk. Accordingly, the consumer audience of your product becomes much wider.

Step #3. Team.

A business angel is a private investor who most often has either a job or a business. The business angel has some experience and will help in the implementation of the project, but the investor needs to have a team of at least two people. If an investment seeker proposes some new approach to a product or service, then, as a rule, an experienced manager is behind the project. If the applicant proposes an invention, then there should be a manager next to such a person: no matter how brilliant the idea is, it must be correctly implemented.

Step number 4. Drawing up a business plan.

You can write a business plan yourself or order it from a consulting firm. The cost of the service will cost $ 1-5 thousand. The business plan should contain: the name of the project, a description of the product (special attention should be paid to independent research and its results), the stage of development of the product, the estimated unit price of the product and the cost of its production, as well as the main functions product. The description of the market should include information about the annual size of the market, its growth rate, segments, as well as your ambitions to capture market share (in percentage). In addition, the business plan should contain information about the necessary investments, competitive advantages and competitors, the management team of your project, the expected share of the investor in the company, the planned return on investment, etc.

Step number 5. Communication with a business angel.

Usually communication with a business angel takes place at presentation sessions. As a rule, applicants for three or four projects come forward at once. It is important to tell all the most important and all the most interesting about the project in 10 minutes allotted for the presentation. Because, as a rule, questions begin after the presentation. The presentation should cover all of the issues mentioned in step #4. The presentation should not be all oral. It is better to prepare handouts and make a presentation in the Power Point program.

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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.

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 of the wealthy patrons of the arts, who sponsored new theatrical productions 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:

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.
manager- most often this is a former employee of corporations who, along with an investment, is trying to find a place for his employment.
Not a professional private investor- usually he is interested in a project or a new product, a 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 striking example of this 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 valuable practical advice to new company managers.

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 "startup" and "seed" stages is a hobby, and 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 novice business angels was launched, and various conferences were held to coordinate the work of investors. In the first year alone, more than $100 million was invested. The average investment now is about $120,000, with which it is quite possible to start a small business.

"Business angels" are one of the main elements of the modern international economy. The first "angels" with a wallet were recorded at the beginning of the 20th century among New York theatergoers. "Angels" on Broadway were called financially wealthy theater fans who invested in new performances, and made a profit only with the success of the production. In 1978, William Wetzel, a professor at the University of New Hampshire, used the term "angel" in his work on the process by which businessmen obtain start-up capital. The word "angel" he called investors who invest personal money in other people's enterprises at their very early stage. Let's figure out why informal investors are called "business angels" (business angels), and how they earn.

Who are they?

Business angels are professional investors (individuals and legal entities) who invest part of their own finances in innovative companies at the early stages of development - "seed" (seed) or "initial" (start-up).
The vast majority of "business angels" are successful entrepreneurs with extensive experience in developing their own business.
Most often, "business angels" are men (99%) aged 45 to 65 who have a university degree and managerial experience.
Every fifth of them, according to research by Western sociologists, is a millionaire.

What are they doing?

"Business angels" most often invest in technology and intelligence, preferring high-tech startups and Internet projects.
"Business angels" with their own capital help innovative projects to overcome the period of formation, and become the main source of external financing for companies with the potential for rapid growth.
"Business angels" can invest not only in a finished project, but simply in an idea, which is impossible for an institutional investor (a large financial institution).
Many "business angels" advise and provide free assistance to their wards, as they are business experts.

What is the payoff?

Investing in the early stages of a business project is known to be highly risky. Business angels expect to make a profit by increasing the value of the companies they invest in as a result of the development and promotion of high-tech products to the market. "Business angels" receive their income by selling their share (block of shares) for a price that is significantly higher than the initial costs. The work of "angels" is considered one of the most highly profitable types of entrepreneurship, capable of bringing an investor about 100% -200% per annum.

Methods of "angels"

"Business angels" use a venture (Venture Capital) investment mechanism, in which financing is provided for a long (3-7 years) period, without collateral and guarantees, for a share (block of shares) in the company.
"Angel" investments are called "smart money", as angels often support projects in which they can apply their own experience, knowledge, and business connections.
"Business angels" achieve success by creating favorable business and friendly relations between investors, inventors and company managers.
"Business angels" reduce their risks by investing in several companies and projects at once, after verification and selection (the so-called due diligence procedure).
"Business angels", having started financing the project, increase its attractiveness in the eyes of other financiers. Angel investments can attract the interest of venture capitalists to enterprises.
Business angels are able to invest jointly by pooling resources and reducing individual risks.

What is the difference

"Business angels" are professional lone venture investors who are focused on supporting start-up entrepreneurs. Unlike classic investors, who may pay attention to a new business, but this will not become their main strategy.
"Business angels", unlike investors who manage other people's funds, invest their own money.
"Business angels" always have personal involvement and expertise, investing in projects.
"Business angels" have the opportunity to make more flexible financial decisions than venture capitalists. They have wider investment horizons (“long money”), a simpler registration process and a lower rate of return.
Raising funding from business angels is cheaper than from other financial institutions.
"Business angels" can be found not only in large financial centers. The financial market of "business angels" is geographically more diverse than the venture capital market.

famous angel designs

Thanks to business angels, Intel, Yahoo, Amazon, Google and many other well-known brands began their journey to success.

Summing up

So, "business angels" prefer to finance in high-risk entrepreneurial companies with great growth potential, preferably at the very first stage of their development. Russian "angel" investments are not yet well developed. Given the small number of domestic projects, Russian "angels" still prefer startups with Russian roots in the US, Europe and Israel.

Roman Molchanov, "School of the Investor".

"Secret" presents the annual rating of the most active Russian business angels, compiled by Firrma Group with the support of RVC and the National Association of Business Angels (NABA). The participants are private investors, for whom investing in Russian and foreign startups is their main business, not a hobby or philanthropy. The main criterion that determines the place in the rating is the number of transactions in 2016 that received public confirmation. For a detailed methodology, please refer to

Alexander Rumyantsev

public data

personal data

Invested startups

Average bill, $

A2 Leasing System, CyberGame.tv, My Schedule, Reg.fm, Flashsafe, Maroom, Agroinnovations, Zig-Zag, Little Pirate, MamaDoma.Biz, Teleport

Rumyantsev has been investing in startups for just over a year - and 15 deals at once. The former financier says that he came to the startup industry to earn money. As an investor, he is omnivorous, but he admits that he especially loves fintech, ecology and VR. He invests relatively small amounts - several million rubles. Judging by the handwriting, Rumyantsev acts mathematically: he has his own methodology and even a small team (although usually angels are still single filibusters). It is interesting that he does not communicate very closely with colleagues in the shop (which is rare in this business), and therefore he has no or almost no joint deals, but at the same time he is quite open (this is even rarer): 11 out of 15 deals are confirmed by public sources. Of the interesting transactions - Flash.so, whose founder Alexei Churkin managed to give his "endless flash drive" to Dmitry Medvedev, and the Agroinnovations startup with the Electronic Herd project, which monitors the number, health and quality of care for cows.

Alexander Borodich

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personal data

Invested startups

Average bill, $

GetShop.TV (twice), GrowFood, Inverse, WiMark System, Buklya, TicketsCloud, MingIvision

Boris Zhilin

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personal data

Invested startups

Average bill, $

100 000–200 000

UberChef, BoomStarter, ParkApp, Done

Zhilin lives in Lausanne, but at the same time, a significant part of his transactions are with partners from Russia (for example, with another well-known angel Alexei Menn and VTB24 top manager Nadia Cherkasova). In general, Zhilin is one of the few Russians who invest in domestic companies from abroad. And he does it very actively: 13 transactions per year (four are confirmed by sources), and 12 of them are in Russia, which is rare for a "foreigner". Zhilin is called a flexible investor, and he confirms this: “I believe in maximum flexibility and I am ready to consider investments both at the very early stage of development (a team with an idea) and at later stages when growth funding is required.” The average check is quite high - $ 100-200,000. From the interesting in the portfolio: Zhilin, together with Alexei Menn, invested 20 million rubles in the apartment renovation service Made by Ilya Oskolkov-Tsentsiper, co-founder of Afisha and the Strelka Institute. Other notable projects include food delivery services FoodFox and Elementaree, as well as a cook-to-home service called UberChef.

Bogdan Yarovoy

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personal data

Invested startups

Average bill, $

Style Consierge, MasterZen, WiMark System, HiConversion

Yarovoy from Kaliningrad is one of the few active business angels living in Russia and not in Moscow. The former chairman of the board of European Bank began investing in venture not very long ago, but rather quickly turned this occupation into a conscious process. He organized the SmartHub venture company, which combines the functions of the club of angels (Yarovaya and the team are developing it as a platform for co-investment) and an accelerator. In communication, Yarovaya is corporately restrained, but nevertheless he invests recklessly: 16 companies in two years, five in the last year (public sources confirm four transactions). He plans to close “one or two more deals” before the New Year. The average check is quite high - $50–70,000. The stages are classic for seed and pre-seed angels. Among the interesting companies in the portfolio are the Russian-British photo marketplace Lobster (deal in 2015), TicketsCloud, AppFollow application monitoring service (the first release of IIDF in the history).

Julius Zegelman

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personal data

Invested startups

Average bill, $

AirCall, AllSet, Rolith

A successful California law practice owner, Zegelman has been investing in startups for years. At the same time, while living in America, he also looks at Russian or Ukrainian projects, although, of course, there are more American projects in his portfolio. Zegelman's investment speed is mesmerizing. According to him, this year he alone and with partners invested in 19 projects (only one from Russia). Three deals have been confirmed publicly. In addition, this angel manages to make exits, which, of course, is the highest class for an investor. The technological focus of Zegelman's investments is wide: cloud technologies, fintech, devices, Internet of things, e-commerce and new materials. Stages - from pre-seed to series A. Here is a typical investor transaction in 2016. Paris-based help desk start-up Aircall, an $8 million round (that's a solid European Stage A), which, in addition to Zegelman, involved several large and medium-sized investors, including Balderton Capital and FJLabs.

Oleg Cheltsov

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Invested startups

Average bill, $

Doctrine, Giroptic, 90 seconds (all - France)

Venture partner of Runa Capital and creator of the Fotolia photobank, Cheltsov, a Frenchman with Russian roots, was once a music producer and is known for discovering the singer Patricia Kaas in Russia. Since the early 2000s, he has invested in more than 50 companies and made about ten successful exits. Cheltsov is still investing a lot. Mostly in France (the local venture capital market is considered quite vigorous). It is difficult to determine the average check, because this angel is usually invested as part of a syndicate. As a rule, this is a strong stage A (which is not very typical for an angel). In 2016, Cheltsov made three deals, all of them “French”.

Sergey Solonin

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Invested startups

Average bill, $

YouDo, Arena Marketing, Instamart

The co-founder of Qiwi, one of the main "blue chips" of Runet, has been investing in technology projects of various sizes for a long time - as an LP (limited partner), through the Qiwi corporate fund, and also individually. The focus of Qiwi is everything related to payment and financial technologies, but the focus of Corned beef is more difficult to understand. His portfolio includes the Arena-Marketing sports ticket distribution service, YouDo, and the Instamart grocery delivery service (by the way, Albert Sagiryan, managing director of Sberbank CIB, participated in this transaction). It is only clear that the investor Solonin prefers to invest at stage A or higher, and that he is interested in fintech in any case, so he headed the FinNet working group of the National Technology Initiative (NTI).

Igor Matsanyuk

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Invested startups

Average bill, $

One of the most closed IT entrepreneurs and investors has completely gone into the shadows in recent years. He lives mainly in Vilnius, where he actively participates in the life of the local technopark. His main brainchild, Game Insight, a major global developer of mobile games, also moved there. Previously, Matsanyuk invested in dozens of startups - first himself, then through his own IMI.VC fund and indirectly as an LP in several Russian funds (which, however, is not documented anywhere). Now little is known about Matsanyuk's investments, and there is a feeling that he was somewhat disappointed by the startup topic. On the other hand, this year he joined the board of trustees of the GenerationS accelerator. Matsanyuk's relatively recent investments include TicketsCloud, a new technopark in Vilnius, and an unnamed medical project.

Oleg Evseenkov

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personal data

Invested startups

Average bill, $

RollCon, Green Investments

Evseenkov invests a lot - in a year, according to him, he invested in 18 startups (however, only two were found). Basically, they invest at the preseed and seed stages in an area that is far from being the most popular among angels - "industrial technology". However, for the former top manager of Rosnano and RAO UES, as well as the Minister of Industry of the Ryazan Region, this is a completely logical choice. In addition, Evseenkov preach an unusual investment model. “My business model is less about exits and more about dividend yields,” he says. The average check is $50 thousand.

Edward Fiyaksel

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personal data

Invested startups

Average bill, $

50 000–150 000

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Perhaps one of the most successful Russian business angels. It was Eduard Fiyaksel who made several bright angel exits in the history of Russian venture, and immediately sold the projects to a strategist. So, in 2014, he sold the broadband Internet access operator Megamax and Internet Lab to companies from the Virgin group of Richard Branson. The multiplier for transactions, according to the investor, exceeded 28. This investor loves areas that are not very popular among angels: telecom, the Internet of things, medical devices. Invests from $50-150,000 at the seed and start-up stages - that is, on average, a little more than most angels. This year, Fiyaksel has invested in eight startups (public sources point to two). Fiyaksel is the Head of the Department of Venture Management at the National Research University Higher School of Economics. Permanently residing in his native Nizhny Novgorod, he leads the local association of business angels "Starting Investments".

Sergey Dashkov

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personal data

Invested startups

Average bill, $

Whatshelp, hellobaby

Dashkov is a member of the Venture Club, one of the most active angel groups. The range of investment interests is very wide: Big Data, fintech, new energy, VR, Internet of Things, biotech, etc. The portfolio includes projects such as Veeroute and Minglvion. Dashkov says he has closed eight deals this year, but only two are publicly available. The first is a customer support service via Whatshelp messengers (an $80,000 round, which also involved Pavel Cherkashin, a veteran of the angelic movement, and several other private investors). The second is the HelloBaby baby app. Dashkov invested in it together with the production center Riki Group (the owner of Smeshariki, Fixiki and Malysharikov) and several members of the Venture Club.

Andrey Golovin

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Invested startups

Average bill, $

Golovin, a veteran of the angel movement, began investing in the 1990s. At the same time, he does not really like the publicity and partying that is inherent in the angel market (Golovin is one of the few who does not make joint deals, and this is generally rare), so it is not so easy to meet him. He invests not only in venture capital, but also in infrastructure - for example, this year he invested in coworking in Spain. Geography, like all experienced angels, goes beyond the borders of the country: for Golovin, these are the Baltic states and Spain. There are also many topics of interest to him: platforms for developing bots and business communications through messengers, cross-border e-commerce, distributed online business systems, new interface technologies, etc. The main criterion for selecting projects is the quality of the team. “We need people not only with bright eyes, but with good experience and a professional background,” he explains. “I even had to make early “exits” due to the fact that I began to doubt the competence of project leaders.”

Oleksandr Chernyak

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personal data

Invested startups

Average bill, $

300,000–2 million

Instacarro (Brazil), Mobalytics (USA)

Chernyak is a big angel investing up to stage B inclusive (and this is definitely the domain of adult venture funds) up to $2 million. Mostly in his native Ukraine, but he manages to look at good projects in Russia and even in Brazil, where Chernyak , there is already one project. Interested in e-commerce, food tech, fintech, smart consumption and travel services. Perhaps one of the most stellar (at least among the known) transactions for an investor was an investment in CarPrice. Today it is one of the most promising young technology companies - you can’t even call it a startup anymore. Now such giants as, for example, Baring Vostok sit in it, but Chernyak was one of the first investors. Yak was one of the first investors.

Igor Shoifot

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Invested startups

Average bill, $

250,000–1 million

Sixa (USA), California in Ukraine (Ukraine)

This angel makes deals in the amount of $250,000 to $1 million - in fact, in the venture funds zone. Shoifot has lived in the US since the 1990s, but regularly invests in Russia and the former Soviet Union (especially in Ukraine). In America, he is also known as the founder of such companies as Epsylon Games, Fotki.Com, vInternship. Shoifot is on friendly terms with the RBC founders' fund - TMT Investments. The investor is interested in several topics: marketplaces, e-commerce, clouds, Big Data, media. Of the latest interesting transactions - the Sixa project. Shoyfot is also known for regularly making good exits - for example, he sold Kanvas to the giant AOL.

Alexey Menn

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personal data

Invested startups

Average bill, $

25 000–400 000

Done, Elementaree

Menn has been an active player in the market for about three years now. In addition, he founded his own venture fund Sun Capital, through which he also makes deals. How an angel invests $200-400,000 in a startup. Menn differs from many other participants in the rating in that he loves not only classic venture deals. “Traditional industries that haven't had technological changes for a long time are interesting,” he explains. “Retail, construction, food tech, e-sports, various b2b services are especially interesting.” At least one of his portfolio companies is known to many young Muscovites - this is the "food designer" Elementaree.

Igor Kaloshin

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Business angels is an important component of the modern international economy. These are informal investors who help to see the light of promising innovative projects, technologies and ideas, many of which can later become an indispensable part of our lives.

The content of the article:

Who are business angels

What is a business angel, where to find them and what do they look like?

business angel (business angels) is a private person who invests his personal funds in promising projects at the initial stage of their development.

For example, you have an interesting business idea. You have carefully worked out a business plan, assembled a team of professional assistants, calculated approximate benefits and are ready to launch a startup. If not for one "but" - the lack of finance, without which not a single business will start. This is where business angels can come to the rescue.

The romantic name for this category of sponsors appeared in America at the beginning of the 20th century. This was the name given to wealthy businessmen who invested money on a grand scale in chic productions on Broadway. And today the meaning of the name remains the same: angels are perceived as benefactors from business, well, or very loyal partners.

To better understand who business angels are, you need to highlight their distinctive features. These are experienced entrepreneurs who successfully develop their business, top managers of the largest companies, people who have built a successful career. The experience and intuition of a businessman are important qualities of a business angel, because they initially have no guarantees of success, and not every startup brings profit. Funds are invested for a period of 3 to 7 years, without collateral for a block of shares in the company.

According to statistics, every fifth business angel receives a profit from invested projects in the amount of 10-15% per annum, every fourth - more than 20% per annum, every third loses his money, the rest only manage to "recapture" the invested funds.

The task of business angels is not just professional investment in potentially profitable ideas, but also mentoring, consulting, curating, and possibly helping with leadership.
The goal is to develop supervised projects, increase their cost, promote the developed high-tech products to the market.

When a startup starts to bring real profit, angels sell their stake in the company (by that time it already far exceeds the value of the initial investment) - in this way they receive their income.

Video about who are business angels

Interesting fact. Few people know, but dozens of world-famous companies at the initial stage of development were invested by business angels. For example, Amazon, Google, Yahoo, Intel.

What you need to know about business angels

Business angels in simple words are " sowing» investors ( seed business angels), because they invest in the initial, or "seed" stages of a project (when there is only an idea). These are professional investors, 99% of them are men aged 45 to 65: experienced businessmen, managers and economists. As a rule, one in five business angels is a millionaire.

Business angels build open, friendly and trusting relationships with their wards.

Watch another great video about business angels, their principles and the essence of investments:

Types of business angels

Depending on the goals, methods and techniques of investing, there are top 5 types of modern business angels. This classification will help the project team in finding an investor, focusing on his interests and field of activity. So, about what business angels of startups are like.

Entrepreneur Angels. They are successful businessmen who are ready to invest large amounts of money (from 200 to 500 thousand dollars) in promising ideas to form their investment portfolio. Since the main employment is their own projects, they do not pretend to manage startups.
Professionals. They invest only in those industries that are close and understandable to them. They operate with different amounts, including significant ones (from 25 to 200 thousand dollars). They often practice joint investments with other business angels or individuals.
Angels - enthusiasts. They do not have much experience and professionalism in the field of investment. They can simultaneously lead several startups in different directions, investing small funds (usually no more than $10,000). They do not delve into the essence of projects in detail and do not interfere in the management process.
Micromelting. Like enthusiasts, they oversee several projects at once, but at the same time they invest different amounts. In addition to cash injections, they study in detail the business plan of a startup, apply for managerial positions and a share in the board of directors, due to which they better control capital expenditure and profit distribution.
Corporate. Usually these are former top managers of reputable international firms who, after their dismissal, received large monetary compensation (on average, $ 1 million). It is this money that they use for investments. They develop no more than one project, trying to participate in its management.

Regardless of the type, all business angels are entrepreneurs aimed at making a profit from their investments. A business person's sharpened senses and accurate calculation help them extract from 70% to 200% of the profit from one successful startup. This is one of the most profitable types of business.

Differences between business angels and investors

The activity of business angels has several differences from the work of classical investors: venture funds or credit institutions. First of all, the fact that angels are engaged in projects that are not of interest to traditional investors. And a few more points.

Use of personal funds. While venture capital investors or financial institutions invest attracted capital from third parties, business angels operate only with their own money.
Wider possibilities. This concerns the adoption of investment decisions, the procedure for drawing up contracts between project developers and fund contributors. Angels have a lower rate of return, and attracting them is cheaper than, for example, a financial institution: investments do not involve interest, cash payments, insurance. If necessary, they can also act as a financial guarantor, which will significantly raise the rating and capabilities of the startup team. In addition, angel investors can pay attention to the most original and extraordinary idea, if it seems promising to them.
High risk and self-interest. Yes, angel businessmen also study business plans and calculate the benefits. But this is not only a bare calculation of future profits: an important role is also played by the enthusiasm for the proposed project, the intuitive choice of startup partners. A business angel can simply “fall in love” with an idea so much that he himself will develop a detailed plan for its implementation. And often interest wins over pragmatism, which increases the level of risk for the investor. In other words, a venture fund invests in a project, while a business angel invests in an idea and people.
Detailed project management. Most often, business angels invest in a startup not only money, but also their own invaluable experience, knowledge, and wisdom. This type of investment is called "smart" - angels advise the development team, help develop and promote the project, attract their own business connections.

How to find business angels

Attracting a business angel to invest in your project is not easy, because there are many more ideas than those who want to sponsor and implement them. But, following a small instruction, you can increase the chances of a successful "hunt". Some tips on how to find a business angel.

Idea generation. The idea should be fresh and unique, attract attention, "catch". It is not at all necessary to invent a miracle of technology or ingenious developments. You can look at existing projects from a different angle - open a non-standard restaurant, salon. At the same time, the creator of the idea must clearly understand how much profit his project will bring, and be able to clearly convey this information to the investor. At least a small market analysis in the chosen industry is very welcome - then communication with the angel will become more productive.
Identification of the target audience. It is necessary to determine the circle of people who will be interested in the proposed product or service. The wider the target audience, the more likely it is to captivate an angel investor, since he is interested in long-term profit.
Selection of a team of professionals. In rare cases, angels take on sole projects, for this they must be truly unique. Therefore, a professional team is the key to success in attracting an investor. At a minimum, the creator of an idea needs a good manager for competent promotion and implementation of a startup.
Drawing up a business plan. Another advantage of the idea developer will be a clear business plan, the presence of which will significantly increase the effectiveness of the search for a business angel. The business plan usually contains comprehensive information about the innovative product: description, differences from competitors, benefits and cost. If necessary, you can use the services of consulting firms to draw up a business plan.
Communication with a business angel. Traditionally, the first meeting with investors takes place at presentations, where everyone presents projects. Each applicant has 10 minutes to draw attention to their startup. You need to try to make sure that in this short period of time you are interested in the angel. A video demonstration and handouts will be a good help: the brighter and more complete the presentation is, the higher the chance to arouse the interest of the investor and achieve his approval.
Search in your geography zone. Often angels prefer to deal with applicants who live in their immediate vicinity: it is easier to arrange meetings, maintain close communication and “ keep your finger on the pulse».

Many business angels have their own websites, e-mail, are open enough to contact talented inventors: it will not be difficult to contact them. These private investors willingly attend thematic events, forums and specialized exhibitions, the probability of meeting an angel businessman is much higher than getting an appointment with a venture fund. You can also leave your offers on open Internet sites. AskCap, StartUpStep, RusBase: they are periodically viewed by influential Russian business angels or their agents.

When several investors unite, associations arise, the activities of which are more productive. The most famous Russian associations of business angels:

Business angels of St. Petersburg
Investment Club Skolkovo
Internet Initiatives Development Fund (sponsoring start-ups at the seed stage)
National Association of Business Angels (provides an up-to-date list of business angels who are ready to cooperate)
National Commonwealth of Business Angels
Union of business angel organizations
AddVenture Business Angels Fund

TOP 52 business angels in Russia

In Russia, as well as abroad, angel investors are ordinary people with their own preferences and tastes, both personal and commercial. To date, the most famous and influential business angels in Russia are:

Head of the association of Russian business angels "Starting Investments". Fiyaksel founded the department of marketing at the National Research University Higher School of Economics, published his own books and textbooks on venture capital, marketing and management.

I started investing 15 years ago. Prefers investments in telecommunications, IT and biotechnology startups. He does not advertise his projects, but the average bill is 100-200 thousand dollars.

Founder of the laboratory for the development of mobile and Internet applications FutureLabs. Invests in Russian and Western projects in the early stages.

Behind him are 22 invested startups, among them: VKReader, Colorizza, Verbling, ConferenceCast. Invests in mobile applications, trading services, and education on the Internet.

Professional investor with over 60 successfully implemented ideas. In 2013 he was awarded the prestigious " Angel of the Year". It has its own fund, which attracts the funds of many successful businessmen who want to increase their income.

The most famous projects: Eruditor, Online ticket.rf. Works with Russian, American and Israeli partners. Preference is given to innovations in the field of education, finance, medicine and IT, entertainment and gaming and content.

Author of many investments, founder of the academy Farmers(invests up to 150 thousand dollars in projects for a 40% share of the business), has its own investment fund IMI.VC actively cooperates with other investors. Oversees at least 10 projects each year.

He prefers to invest in mobile and gaming applications, but is ready to invest $1 million in a promising startup. Among the successful projects: MyWardrobe, Proberry.

Karlov founded the association of business angels Angel Relations Group, he invests both at the expense of his own funds and the capital of the company.

Famous projects: Windows Phone applications, image visualization programs, SlyLamb studio. Invests in the field of medicine, mobile applications, and those projects that could introduce their products to African markets.

Head of the Angel Network The United Venture Company. Most successful projects: To Go TV, Boommy, Alloka, Interior.Pro.

Invests in the early stages of projects in mobile application management, innovative communication, entertainment and cloud technologies. The average check is 200-300 thousand dollars.

Chairman of the investor club at the Skolkovo School of Management, public figure. It is invested both at early and later stages of project development.

Preferred investment sectors include science, health, Internet services and technology. Of the 25 ideas, the most successful were: "Life Button", Printio.ru, Eduson.tv.

The formation of a businessman's career took place in companies Microsoft And Sputnik Labs. Now Cherkashin is investing in non-standard Russian and American projects: mainly projects for social networks, search technologies, ideas for entertainment and social services; projects related to photo and video on the Internet.

Most famous invested startups: applications Webbanker, Minute and AdWired. The average check is 200-300 thousand dollars.

The list of business angels continues:

Alexander Aivazov, projects - MartMania
Alexander Borodich, FutureLabs business incubator (MyWishBoard, WishCoins)
Alexander Vashchenko, projects - Narr8
Alexander Dresen, projects – Zin.gl, TechPitch.ru
Alexander Turkot – Qbaka
Alexander Yunyaev, projects - Cashsquare
Alexey Basov, projects - Pruffi, Habrahabr, Roem, Firrma
Alexey Karlov - SlyLamb
Alexey Kichaikin, projects – Displair
Alexey Prudnikov, projects - "Traffic from the window"
Andrey Golovin, projects - Russian Story, Promo.ru, Kinoplex
Arkady Moreinis - Klevosti, Plantains, Tagbrand
Askar Tuganbaev, projects - Videomore, Tolkien.Ru
Vadim Asadov, projects –Neurok, AlumniFunder
Vadim Kulikov, Kulikov Innovation Center
Vadim Tarasov, Investment Director at Bright Capital (Doctor at Work, Photo School)
Viktor Frumkin, projects - Flocktory
Vyacheslav Davidenko, projects - Alytics, Witget
Dmitry Maslennikov, projects - KudaPotratil.ru
Evgeny Zaitsev, Helix Ventures (medical)
Egor Rudi, projects - Eruditor, Printio, LinguaLeo
Igor Ashmanov, projects - Wada!, Roem.ru, Remparo Filter, Ayayay.ru
Igor Balk, Managing Director of Global Innovation Labs, TaskPoint
Igor Matsanyuk - Proberry, Woodla, MyWardrobe.
Igor Ryabenky, Altair Foundation (SocialMart, SailPlay, Alloka, HiConvertion, etc.)
Igor Ustinov, projects - ClipClock
Ilya Osipov, projects - I2IStudy.com, Numbuster, Bankrupt.Pro, MDDay events (Mobile Developer Day).
Konstantin Sinyushin, projects – Gbooking, director of the Untitled venture capital company
Leonid Volkov, Founder of Projector Ventures, projects - Callaround, Oktodon, Receptol, Domosite, Timeliner, Citrea, DalSlovo.ru, Evrent, SideNotes
Mikhail Kechinov, projects - Absly.com
Mikhail Paulkin, projects - RuTube, Minutta
Murad Sofizade, projects - TravelTipz
Nikita Khalyavin, projects - YaKlass, Professionals.ru, ShopogoliQ.ru
Nikolay Badulin, investments in innovative projects with the help of FiBr
Hovhannes Poghosyan, projects - Onetwotrip, Mainpeople.com
Oleg Mikhalsky, projects - AR2Life, B-152, partner and co-founder of iAaccelerator
Oskar Hartmann – Pharma Express
Pavel Glushenkov, investment director of Inventure Partners
Pavel Cherkashin, Vestor.In Foundation
Sergey Gribov - American and Russian projects
Sergey Zhukov, projects - "Goods from the 90s", "BeriDari"
Eduard Fiyaksel - projects not disclosed
Yuri Virovets, projects - Clickberry, Actio.tv
Yuriy Oreshin, lifescience projects - Angelico Ventures venture fund

Conclusion

After definitions and examples, it becomes more clear who business angels are. If you have a real business idea, its model and plan, but there are no funds for implementation, business angels can be one of the financing options.

Attracting a business angel to finance your project is a great chance to start and promote a business in the absence of a material base.

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