Business angels
Business angels are private individuals who invest money and knowledge in start-up, growing companies. As an entrepreneur, business angels can provide you with access to capital, expertise and useful contacts.
A business angel often has experience of running a business. They also have the time, commitment and capital to invest in new, promising business ideas in fast-growing sectors. At the same time, the business angel wants a good return on their investment and is therefore prepared to contribute to the development of the company through their own efforts.
A complement to venture capital
Business angels often act as a complement to venture capitalists, often for smaller amounts than venture capitalists can provide. Business angels instead usually appear earlier in the process than venture capitalists. In part, this is because private investors are often able to make investment decisions more quickly because they invest much smaller amounts and combine their investment with personal interests. But business angels can of course also be present at other stages of the company's life cycle. Even together with venture capitalists.
Significance of the sector
In classic sectors, such as the manufacturing industry, ordinary bank loans are still the most common. But in the case of e.g. IT developments, business angels and venture capitalists are common early-stage investors. Unlike banks, business angels are active investors and therefore usually stick to the sector they are or have been active in.
How do you connect with business angels?
In recent years, a number of networks of business angels have been set up. The role of these networks is to bring entrepreneurs together with business angels and to help with advice.
You can connect with business angel networks via Connect Sverige.
Connect Sverige's website (in Swedish)