Fast-moving times demand goal-oriented actions. Innovation and drive are needed to overcome challenges, close knowledge gaps and view processes from a completely new perspective. You too are facing the challenges of current circumstances and have set yourself the goal of proactively shaping the future within your vision. The path you go as a founder is an exciting and certainly demanding one. Highs are followed by lows and demand competent, fast, and goal-oriented action. The greatest challenge is to unite the strategic and operational activities along one’s own vision and to align this with the demands of the market. In this context, the liquidity and financing of the company play a central role.
Certainly, there are different ways to secure financing. In the following, however, it can be quickly grasped on the basis of three criteria that the cooperation with business angels represents the most competent basis to further develop your startup in early company phases and to skillfully face the challenges of a company foundation.
1. In order to implement business ideas and startup visions in a market-valid way, you need people who believe in them. A business angel is such a promoter who has grasped the potential in you, your team, and your vision. For this purpose, he provides capital, mostly in the form of a convertible loan, for the further growth of the company and supports you in using it in an appropriate way.
2. The far more important resources, which a participation of a business angel brings along, are found apart from monetary forms. The extended resource package known as smart money includes know-how, technical expertise, and personal experience of the investor. This serves to further develop your processes and products, to avoid wrong actions and to set follow-up actions correctly. A business angel is involved in strategic planning and in many cases also participates in operational issues.
3. Smart money also includes access to the investors network and valuable industry contacts. The business angel acts as an intermediary and represents a quality criterion for external persons, which conveys credibility to your startup idea and allows the external view of your startup to skyrocket.
Working together with a business angel requires mutual trust and a good interpersonal basis as there are many challenges to be mastered during this long-term partnership. Therefore, the choice should be carefully considered. Nevertheless, it is highly recommended since getting a business angel on board is sometimes the most important step on your way to new entrepreneurial success.
We support you in finding the right business angel and help you to sustainably expand your competence portfolio. For further information, check out our website or apply directly to get in touch. We are looking forward to hearing from you!
Author: Niklas Benesch, Head of Startups & Network at aaia