Business Investment Clubs

Posted on 02. Jul, 2011 by admin in Uncategorized

A network of Business Angels is an organization legally formalized for linking potential investors and entrepreneurs with an overall objective to make investments by business angels and be the focal point of regional entrepreneurs in research funding.
Why join a network?

• for easier access and expanded to more interesting and original files, a network is a focal point of regional entrepreneurs seeking funding,
• in order to share skills and expertise with other business angels,
• to analyze and study records several Business Angels thereby reducing the risk of misjudgment on the files and contractors,
• in order to possibly invest in a project with other business angels, which can either consider larger projects, or to invest in more projects and thus reduce the individual risks.

Different forms of existing organizations :

• Associative networks: structures dedicated to linking entrepreneurs / investors. Generally, the structure provides for regular meetings for the presentation of selected projects to an audience of potential investors. Access rights to the device, for entrepreneurs and investors, are inexpensive, there are no levies on capital raised.

• So-called ‘SIBA “(Investment Company Business Angels): Some Business angels (especially in small number, 10 to 50) want to stay” them “without seeking a strong regional profile. They then agree to put their money in a “common pot”, which most often takes the legal form ” SAS / status of SCR “. This structure requires strict rules of operation ( board , president …) and investment decision (Investment Committee).

• Joint Organization: Association + SIBA. More and more networks have experimented separately the association structure or structure SIBA conclude that a dual structure associations and venture capital (business angels or not being members of the two structures) has many advantages. The associative structure allows a “acculturation” easier for new Business Angels less experienced, diverse communication activities to recruit new members and systematic contact with entrepreneurs seeking funding. SIBA structure requires the rigor of organized collective decisions and effectively brings together a larger number of Business Angels, both active and passive.