Under the Wing of a Business Angel: Reliable Support for Entrepreneurship

Money is a problem that any business can stumble upon. Even the most brilliant idea and talented solution will be useless if they cannot be brought to life, and without funding, this is very difficult. Unless, of course, luck strikes, and the stars align so that the world learns of your invention on its own.

But that doesn't happen, so you have to look for money. And here angels can come to the rescue. Sounds strange? Yes, but behind this romantic name are very real people who help promising young companies get on their feet and change the world for the better.

So who are business angels and why do they do what they do?

Angels: Who They Are and Where They Came From

Angels are private investors who invest in the development of potentially profitable projects. This doesn’t mean they throw money around carelessly, but anyone who considers their idea effective—revolutionary or simply original—can approach them. Moreover, there are entire organizations of business angels that monitor the emergence of original projects and are eager to connect with talented engineers, inventors, and entrepreneurs.

The very name “business angel” reveals the essence of these individuals: they support, protect, and encourage those who need help. It is believed that this romantic name first appeared in the 1960s when one brave investor financed the project of engineer and entrepreneur Eugene Kleiner.

He decided to venture into the production of silicon chips; however, major investors were hesitant to support this innovative project, while Arthur Rock was interested in the novelty. Using his connections in the financial sector, Rock found a private investor who allocated one and a half million dollars, allowing the creation of Fairchild Semiconductor. In essence, this marked the beginning of Silicon Valley.

This case showed that risk is not only noble but also profitable, and new angels began to emerge across the country. This gave rise to various startups, many of which later transformed into large corporations such as: Apple, Amazon, Intel, Google.

Why Do Angels Help Startups?

If you are wondering what drives investors to take the risk of financing new business projects, the answer is simple: the desire to help talented people and change the world. Profit is merely a pleasant bonus. Many business angels are wealthy individuals who have secured their retirement and can now engage in what interests them.

We have spoken to many business angels, and their motivations can be roughly divided into three groups:

Enthusiasm and the desire to help young entrepreneurs. Many of these investors encountered good angels early in their careers, and now, being successful businessmen, they strive to continue the chain of goodwill.

The desire to realize their dreams. A person has always wanted to work in a certain field, but circumstances took a different turn. Now, having achieved success and financial independence, a businessman allows themselves to engage in what they love. Moreover, they can participate either as an investor who simply monitors the success of their mentees or as an active member of the team, if they have the necessary knowledge and skills. And this dreamer doesn’t have to be an elderly gentleman with gray hair; successful businessmen can afford to "retire" at 35.

Building a reputation. This is one of the most unusual reasons. Do you still think a millionaire is a lavishly dressed dandy living in a huge house with a garage full of expensive cars? Forget it; in modern society, you can wear torn jeans and rollerblade but still be the most sought-after guest among businessmen. In California, particularly in Silicon Valley, there are millions of millionaires. Just being wealthy won’t get you social connections. To engage with interesting people, you need to be part of the right “scene.”

For these people, it doesn’t matter if you have a large yacht, a villa with a dozen bedrooms, or a fleet of expensive cars. You can throw the most extravagant parties that nobody will attend except for broke students and party animals who enjoy free snacks and drinks.

In Silicon Valley, having a super trendy and popular startup that everyone talks and writes about is what matters.

That’s when you become a star, and everyone wants to interact with you. Just look at Elon Musk; he doesn’t have a yacht or even a house in Silicon Valley. From the perspective of Russian (Ukrainian) billionaires and millionaires, he is a complete pauper. Yet, in Silicon Valley, he is the main star simply because he has Tesla and SpaceX… So many angels dream of their own Tesla and SpaceX, and they want to be shareholders and first investors in the future Tesla and SpaceX, and you can help them with that! Often, company founders don’t even realize the real potential of their technology. But angels do.

In general, angels are people who sponsor not for profit but for the realization of dreams and out of good intentions. In this case, finances take a back seat, and self-realization and the satisfaction of being able to contribute to science and business become paramount.

Sometimes, an angel cannot finance a project alone, and then investors pool their resources, forming associations and mergers. There are hundreds of them in Silicon Valley. In the case of financial support, everyone benefits: the business angel becomes an equal partner in a promising business, while the young startup receives the necessary backing.

How to Find Your Angel

The presence of business angels simplifies life for young entrepreneurs, as financial assistance provides extra motivation to work. However, on the other hand, there are clearly more candidates than sponsors, so you need to have truly exceptional abilities to catch their attention. To attract an investor, it’s not enough to be talented; you need to present your project impressively. For this, you need to understand what type of angel is in front of you:

Lead Investor – an experienced angel who has invested in more than one project and understands business mechanisms. This investor usually actively monitors operations, providing help both financially and with knowledge and experience.

Manager – usually a former employee of a large corporation, they not only invest but also become one of the participants in the startup.

Non-professional private investor – a person who simply decides to help an appealing project or who is interested in a new type of activity.

Unlike venture investors, who usually attract external funds, an angel always risks their own capital. Therefore, you need to do something original to pique their interest in your idea. What do business angels like?

Courage and creativity. Non-standard thinkers often come up with innovative technologies, so investors are primarily interested in new, fresh ideas.

A well-developed business plan. Behind any technology, there should be a clear understanding of its purpose and the benefits it can bring.

A bright and clear presentation. There are many individuals seeking financial assistance, so angel associations organize something like a competition, during which an entrepreneur must clearly and succinctly explain why their project deserves investment within a short time.

Of course, everyone can make mistakes. In U.S. history, there are examples of both incredibly successful investments and terribly failed ones. For example, an investment of just $91,000 in Apple during its early days yielded an angel $154 million! And Thomas Alberg, who believed in Amazon and allocated just $100,000, returned $26 million. Meanwhile, one novice angel decided to withdraw their $800 from Apple and surely regretted it later, as that amount could have turned into $56 billion! So nobody knows how the next startup will turn out.

We have long collaborated with business angels worldwide, and we know that they are always happy to see worthy and strong projects. In modern business, intelligent, bold, and creative individuals are valued and respected, so finding funding becomes less of a challenge. We will help you ensure that.

If you want to become an investor yourself, welcome to our team. We will select the most promising startups so that you can choose what you feel passionate about and help young businesses become formidable players.