A business angel is a private individual, often with a high net worth, and usually with business experience, who directly invests part of their assets in new and growing private businesses. Business angels can invest individually or as part of a syndicate, where one angel typically takes the lead role.
Besides capital, angel investors provide business management experience, skills and contacts for the entrepreneur. Experienced angels also know that they may have to wait for a return on their investment. They can, therefore, be a good source of ‘smart and patient’ capital.
Business angels play an important role in the economy. They are increasingly important as providers of risk capital and contributors to economic growth and technological advances.
Many EU countries provide incentives to private individuals who are willing to invest in enterprises and use public funds for co-investment with business angels.
The European Commission is working together with EU countries to support business angel investments, for example, through the InvestEU Fund or by facilitating matchmaking opportunities, such as during the European Angel Investment Summit.
Business angel networks
- The European Trade Association for Business Angels, Seed Funds and Early Stage Market Players (EBAN) represents the early stage investor community in Europe, including business angel networks and angel investors
- Business Angels Europe represents European business angel federations and trade associations