Email a collegue.| Headline: | Business angels mostly motivated by profit |
| Description: | Getting a high return on investment is the number one reason why business angels give their backing to small firms.
This is according to new research carried out by the University of Bristol and AngelBourse, an intermediary that matches investors with businesses. The opportunity to sharing knowledge and personal enjoyment ranked much lower down the survey respondents' list of reasons why they would invest than making a good return. The majority of angels questioned said they also look for a board seat or part-time role in the business in return for their backing. Other findings of the research include: *most investments are worth £50,000 or less, although syndicates can make the overall investment larger, *nearly half of business angels prefer to invest in the "pre-revenue stage" rather than a complete start up,which facilitates negotiating a larger equity stake, *the largest number of those surveyed preferred a board seat, with others being satisfied in mentoring or silent investor roles, *angels make an average of one investment per year, most angels have been entrepreneurs in their previous careers, *with professional services and the IT/communications sectors taking equal second spot. |
| Date: | 01.02.2005 |
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