What is an angel investment network and how does it work?
A network of investment angels is a group of individuals interested in investing and participating in the operations in which they invest, as described earlier. In general terms these investors are business owners or successful entrepreneurs, owners of family-run businesses who invest in new businesses or managers who have available equity. These investors have common traits that are essential for this activity as well as the key to their motivation: a spirit of entrepreneurship and the capacity of contributing capital and know-how to the project in which they decide to invest. Additionally they participate actively in the launching of a new business, as a way of sharing their experience with the community.
The network organizes investment forums where investors are introduced to a series of projects which they must evaluate and analyze in order to decide on their possible participation. The network does not decide as a group since investment decisions are taken at a personal level. One could say that the network provides the structure and the methodology that are necessary to foster the encounter between angel investors and projects that may be attractive to them.
Belonging to a formal group of angel investors has several advantages. For example, members may access projects in a more organized manner; they become part of a community where they share common interests; they learn from the experience and knowledge contributed by other members of the group; co-investment is made easier; one same methodology is applied for the analysis and presentation projects and it helps members to keep abreast of the development of the main industries of interest.