What is a Business Angel or Angel Investor?

Ash Baggott

Have you ever heard of a business angel? If so, you’re probably wondering how to get one? After all, a business angel can be the support an entrepreneur needs to begin a business. So let’s take a look at what exactly this supporter is.

When starting a business you need to have the necessary initial capital to open the doors and keep them open until you’re making a profit. There are many ways to acquire this capital, some save up for a lifetime, to give their dream a go later in life. Whilst others are fortunate enough to receive the help from an angel investor. This type of support can set you off on the right foot from day one.

What is a business angel?

An angel investor, or business angel, or an investor angel, are all the same thing. It’s essentially a person who acts like a ‘saint’, they contribute an economic amount – and sometimes their time and experience – to a business, one that is unquoted, and run by an entrepreneur who needs guidance and support. The investment can come at any point within the history of the business, however a business angel is usually more associated with a new business in its first steps.

The term was first created in the early twentieth century in the United States, and it referred to people who financially supported Broadway theatre productions, that without help, wouldn’t have made it or survived.

It’s no surprise that the term has adapted and changed over the years, and we can refer to a business angel as anyone who meets the following requirements;

  • Investing financially. However, it is not a venture capital entity that invests third party money.
  • Makes business decisions freely and independently.
  • Investing in a business who are owned by someone you do not have a relationship with.
  • Your overall goal is to make money, although it’s not your only reason to invest.

Who are business angels in the UK?

So, it’s all good discussing a business investor, the benefits and how great it can be … but if you have no idea how to acquire one, what’s the point. SO you’re probably asking yourself the first initial questions, who do I go to? Who’s the best business angels in the UK? Let’s have a look.

Firstly, you should know that most business angels invest in businesses anonymously. So should you know why it’s very important that some official networks exist and are dedicated to connecting mentors with entrepreneurs. Some of the best known in the UK are UK Business Angels Association (UKBAA) and The UK Investment Network. There are others too that you can find with a simple web search. 

Being based in the UK, you’re very lucky because a lot of investors exist that want to put their money into UK businesses, let’s highlight six of the top investors in Europe that have done just that.

  • Jesper Buch – He is considered as one of the top internet entrepreneurs in Europe, he’s also the co-founder of just-eat.
  • Paola Bonomo – She is an Italian investor and invests into the digital technology space.
  • Christian Vollman – He is a German serial-entrepreneur and is one of the most active business angels in Germany.
  • Niklas Zennstrom – He is a Swedish experienced entrepreneur and is most known for being the co-founder of Skype.
  • Christopher Maire – He is Berlin-based and is a repeat investor in digital startup companies.
  • Xavier Niel – He is often referred to as France’s most influential technology entrepreneur and visionary. He’s also one of the most active angel investors in the world through his fund, Kima Ventures.

And whilst you’re in search of your desired angel investor, make sure you have an invoice making software in place, so you can invoice your clients like there’s no tomorrow and watch you profits soar.

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