Author: Dr. Klaudia Klaus
The specific investor attributes of Business Angels make them frontrunners in Startup investing. Business Angels are able to thing long-term and usually represent an extensive network of institutional investors. Direct investments and “Buy-and-Hold” strategies have the potential to create higher investment costs, which make the direct network of available financial investors the best advantage for all involved parties. Due to their entrepreneurial spirit, they are more interested in new experimental Startups and are willing to invest in unconventional innovations. They have freedom of choice because they usually do not report to capital givers, corporate strategists, regulatory institutions, or banks. There is one basic requirement, however: The fundamental data has to work for them. This means the Business Angel has to be convinced of the idea, believe the investment is going to work out in the long term, and return a profit. The opportunistic approach means that working with a Startup will create a tangible profit. Summed up, it can be said that Business Angels want to protect their interests and those of their heirs while advancing innovative Startups that have an impact on the European innovation, that create employment, and actively contribute to the strengthening of the local economy.