The Body Shop Los Angeles
A Business Angel is an individual who makes his own investment decisions and who brings his own money, and sometimes their time, non-listed companies promoted by people who are outsiders. While investing in any stage of development, the Business Angel plays a key role in the creation of innovative companies to support entrepreneurs in the early stages of the life cycle of their businesses (seed and start). Companies as successful as The Body Shop, Amazon, Skype, Starbucks and Google had in its infancy with the support of a Business Angel. Known as Angel Investors in the U. S. or simply Angels, in reference to entrepreneurs in the early twentieth century supported the Broadway theater productions in Spain have proposed different translations as business angels, private investors, business angels, investors angel investors, investors without proximity or angel investors for the moment none of them have moved to end Business Angel, which is the most frequently used in Europe to refer to this type of investor. Although the Business Angel responds to a heterogeneous profile and therefore difficult to establish, there are some features that are common to all and serve to differentiate them from other types of investors:. The Business Angels help cover the lack of funding entrepreneurs that are in the initial stages of the life cycle of their company (equity gap). Investment in these early stages is associated with high levels of risk and illiquidity. These factors, coupled with the absence of guarantees, make bank financición be inappropriate in these phases. At the same time the volume of funds demanded by the new companies, although outweighing the possible contribution of entrepreneurs and their group of family and friends, are generally too small to capture the interest of private equity (venture capital ) whose operational dynamics are forced to invest increasing amounts of money on each transaction and in later stages of their life cycle. Another important aspect of the contribution of the business angel is when its contribution to the company, in addition to money, their time acting as mentor to the entrepreneur. Thus, the Business Angel contributes to the development company that invests in the team by providing entrepreneurial network of contacts and experience. In the U. S. Business Angels are the main source of funding for companies in the early stages of their life cycle (seed and start-up), playing a key role in economic development and employment generation in the country. It is estimated that in 2007 became the Business Angels invest $ 26. 000 million to 57. 120 companies, mostly in early stages, up from less than 4,000 companies backed by venture capital firms, mostly in the later stages. In Europe, despite the momentum of recent years, an estimated market size of Business Angels is about 10 times lower than the U. S. . UU. EBAN AEBAN a member of The European Trade Association for Business Angels, Seed Funds and other Early Stage Market Players, as the Spanish National Federation of Business Angels Networks. . . .