Angels

Nordic Business Angels

Business angels are private individuals investing their knowledge, networks and capital in unlisted potential growth companies.

A typical Nordic Angel

Business angels are private individuals investing their own time, networks, and capital into early stage growth companies. The investment size, according to FiBAN, is approximately 20.000€ per angel/round. These investments are usually made in syndicate groups where a financing round is ca 200.000€. There are several types of angel profiles: full-time, half-time, and hobby investors. As there is no accreditation needed to call yourself a business angel in Europe, the entrepreneur should make sure not to confuse potential angel investor growth support with mentoring (altruistic) or consultation (fee). An angel receives ownership (equity) from a startup in exchange for his/her input, making their main salary through an exit.

The startup community easily forgets the role of angels when discussing startup investing. Compared to for example VCs, angels are not forced to invest and startup investing is considered for many “as an expensive hobby”. Startups often find themselves competing for the attention of an investor who spends time with other private activities. In addition, angels also know that half of startup investments usually fail, so from the entrepreneurs perspective a lot of effort is needed to close a round with angel investors. One of the main reasons for angels to invest in a startup is the emotional relation, the interest of being part of something significant and meaningful, with a potential for huge impact, which is often as important, if not more, as the financial possibilities. There is also a strong culture of “giving back” to young entrepreneurs as well as society.

Find more angel statistics here.

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