Business angels: who are they?

The most common definition of a business angel is the following: it’s a type of investor who specializes in investments in innovative projects at an early stage of their development. That is, investor puts in relatively small amount of cash, but this is a great starting point for the startup. Doing this, business angel gets a stake in the project. And in case of substantial revenue, he gets quite a good payback.

Another peculiarity is that in majority cases, business angel invests his own money (contrary to venture capitalists). As a rule, he operates with a small amount of cash, about $50-100k. Sometimes, business angels form up a group and invest a larger sum of money.

The bigger the risks, the bigger the revenue

A typical business angel is a 35-55 y.o. man with substantial investment experience, and mostly likely an ex-entrepreneur. That’s why if angels already have quite a lot of their own money, they are ready to take risks and invest in startups.  In most cases, investment size is no bigger than 5% of angel’s overall funds. Majority of business angles invest in several projects at a time.

Talking about risks, they are really high in this sphere. The reason behind this is that IT is quite a new field, which is constantly developing and undergoing changes. Besides, at early stages startups and business angels are far from being “a family”, and their interference bears just informal character. Of course, this makes it more difficult for investor to take any control of the startup.

Nevertheless, neither of these factors stops business angels to invest their own money in risky ventures. Even if 1 startup out of 10 gets successful, the revenue received form this one project will cover expenses for the rest of “not so successful” projects. As a rule, this ratio works in real life.

No doubt those early investors in Google are now billionairesJ

Differences among business angels

It’s also capturing to take a look at the so-called modern classification of business angels:

Adrien Henni
Adrien Henni

Chief Editor @EWDN

Aleksander Mokrecki
Aleksander Mokrecki

Co-founder & CEO @StartUp Hub Poland

Aleksandr Danchenko
Aleksandr Danchenko

General Director @Datagroup

Aleksey Lazorenko
Aleksey Lazorenko

Country Manager Russia / Ukraine @BlaBlaCar

Ales Spetic
Ales Spetic

CEO & Co-founder @CubeSensors

Alex Anikin
Alex Anikin

President @Global Technology Foundation

Alexander Galitsky
Alexander Galitsky

Managing Partner @Almaz Capital

Alexander Gribenko
Alexander Gribenko

Head of operations, chief product owner @LIGA ZAKON LLC

Alexander Turkot
Alexander Turkot

Founder, Partner, Chairman of Investment Committee @Maxfield Capital

Andreas Otto
Andreas Otto

Investment Director @SevenVentures

Andrey Kolodyuk
Andrey Kolodyuk

Co-founder & Managing Partner @AVentures Capital

Andriy Dubetsky
Andriy Dubetsky

Founder @Bitcoin Foundation Ukraine

Angel Garcia
Angel Garcia

Founding Partner @Startupbootcamp

Bakhrom Ibragimov
Bakhrom Ibragimov

Investment Team @EBRD

Cem Sertoglu
Cem Sertoglu

Partner @Earlybird Venture Capital

Christian Graggaber
Christian Graggaber

Chief Digital Officer @Hubert Burda Media

Daniele Regolo
Daniele Regolo

President & Founder @Jobmetoo

David Greco
David Greco

CTO @Eligotech

Denis Gursky
Denis Gursky

Founder @SocialBoost

Derek Anderson
Derek Anderson

COO @invisibleCRM

Dmitriy Chikhachev
Dmitriy Chikhachev

Managing Partner @Runa Capital

Erik Anderson
Erik Anderson

Marketing @Startup Wise Guys

Florian Heinemann
Florian Heinemann

Co-founder & MD @Project A Ventures

Florian Schweitzer
Florian Schweitzer

Co-founder @b-to-v Partners AG

Gary Whitehill
Gary Whitehill

Founder @BURST & Entrepreneur Week

Giorgio Valaguzza
Giorgio Valaguzza

Managing Director @Ithaca

Igor Semenov
Igor Semenov

Venture Partner @TA Venture

Igor Shoifot
Igor Shoifot

Investor @TMT Investments & Chairman of the Board of Directors @Happy Farm Incubator

Ihor Malchenyuk
Ihor Malchenyuk

Senior Solution Sales Executive @SAP

Indrek Rebane
Indrek Rebane

CTO @Buildit Hardware Accelerator

Jaewon Peter Chun
Jaewon Peter Chun

CEO @APEX Investment & Company

Jeffrey Smith
Jeffrey Smith

Chief Information Officer @CEX.IO

Jose Marin
Jose Marin

Co-Founder & co-CEO @IG Expansion

Jude Ower
Jude Ower

Founder & CEO @PlayMob

Katherine Kostereva
Katherine Kostereva

CEO & Co-founder @Terrasoft

Keith Teare
Keith Teare

Founder @Archimedes Labs, CEO @Chat Center

Kerstin Schiefelbein
Kerstin Schiefelbein

Director Digital Publishing & Innovation @Burda International

Kieno Kammies
Kieno Kammies

Talk Show Host @Primedia Broadcasting

Kirill Cehoval
Kirill Cehoval

Director in Russia & CIS @Intel Capital

Limor Schweitzer
Limor Schweitzer

CEO @RoboSavvy & Franky the Robot

Luca Ascani
Luca Ascani

Co-founder & CEO @Populis

Martin Albert
Martin Albert

CEO @Bitalo AG

Martin Weber
Martin Weber

General Partner @Holtzbrinck Ventures

Max Ischenko
Max Ischenko

Founder & Director @DOU.ua & Djinni.co

Maxim Faldin
Maxim Faldin

Co-founder & Co-CEO @Wikimart

Mikhail Pergamenshik
Mikhail Pergamenshik

Senior Associate @Juscutum Attorneys Association

Moe Levin
Moe Levin

Director of European Business Development @BitPay

Nicolas Brousse
Nicolas Brousse

Sr. Director of Operations Engineering @TubeMogul

Nicolò Miscioscia
Nicolò Miscioscia

Head of Advisory @U-Start

Pavel Bogdanov
Pavel Bogdanov

General Partner @Almaz Capital Partners

Piotr Jas
Piotr Jas

General Manager CEE @BlaBlaCar

Rafael de Haro
Rafael de Haro

Partner @Variv Capital

Roman Prokofyev
Roman Prokofyev

Co-founder @Jooble

Roman Simonov
Roman Simonov

Managing Director @Siguler Guff

Stephane Kasriel
Stephane Kasriel

Senior Vice President, Product and Engineering @Elance-oDesk

Stephen Leguillon
Stephen Leguillon

Founder & CEO @La Belle Assiette

Tom Hooper
Tom Hooper

Founder & CEO @Third Space Learning

Tomasz Danis
Tomasz Danis

Investment Partner @MCI Management

Viktor Kryvenko
Viktor Kryvenko

Head @Technopolis

Viktor Tsykunov
Viktor Tsykunov

Developers & Platform Evangelism Lead @Microsoft Ukraine

Viktoriya Tigipko
Viktoriya Tigipko

Managing Director @TA Venture

Vitaliy Nuzhnyy
Vitaliy Nuzhnyy

Managing Director @Luxoft Ukraine

Vittorio Mauri
Vittorio Mauri

Country Manager Italy @U-Start

Yaroslav Romashko
Yaroslav Romashko

Co-founder & Operations Director @Carrot

Yevgen Sysoyev
Yevgen Sysoyev

Managing Partner @AVentures Capital

Yuriy Zaytsev
Yuriy Zaytsev

Business Development Director @Microsoft Central & Eastern Europe

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