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Business Angels and Business Angel Network Activities in Europe |
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The importance of business angel financing for small firms is widely recognised by entrepreneurs and investors. The European Business Angel Network (EBAN) and its member organisations have done valuable work in raising awareness about business angels across Europe. For its part the European Commission is committed to the development of risk capital financing in Europe and EBAN views business angel investments as an essential part of early-stage business development for many firms with growth potential. Their policy is to help the development of business angel investments by identifying best practices, removing obstacles and promoting cooperation among investors – and they encourage the Member States to do the same.
Business angel networks add value by matching entrepreneurs and angels, and by increasing trust through codes of conduct. The increasing number of angel networks in Member States with mature financial systems indicates that in many cases the business angel market is reaching a stage where finding a sustainable business model is more important than expansion. This provides new challenges for angel networks.
Although business angel networks are mostly local and regional, they see also an opportunity for a more pan-European approach. Very few countries have domestic resources to finance, for example, medical or biotechnology companies beyond the first financing round and investor cooperation is needed. Syndicated investments among angels and co-investment schemes
between angels and venture capital funds provide both synergy and leverage. Furthermore, cross-border risk capital investments benefit recipient firms by giving them an opportunity to achieve a real European dimension.
The publication "Introduction to business angels and business angel network activities " is a guide book to understand what business angels are and how they are organised in networks. This publication is aimed at future network managers as well as any other person looking for comprehensive information on the functioning of the informal venture capital industry.
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Last Updated ( Friday, 07 August 2009 )
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