STEPS TO BECOME A BUSINESS ANGEL

Accelerate your business with these expert tips "Steps to becoming a Business Angel". Analyse and discover this TIP!

The following action plan will help you become a business angel and acquire the knowledge and tools necessary to invest successfully.

1. Knowledge of start-up investments: it is important to have a solid understanding of the startup ecosystem, including the investment phase, investment structure, startup valuation, etc... (see+).
2. Networking (+): It is essential to establish relationships with other investors, entrepreneurs, accelerators, etc. in order to gain access to new investment opportunities.
3. Previous experience in the business world: It is advisable to have previous experience in the business world, either as an entrepreneur or in the financial sector, as this will give you a better understanding of how a company works and a clearer view of investment opportunities.
4. It studies real cases: studies and analyses successful and unsuccessful startup investments to learn from successful strategies and mistakes made by other investors. Listen to mentorDay's monthly selection of investable startups (see+).
5. Participation in workshops and events (+): participating in workshops and events related to the startup ecosystem will allow you to acquire new knowledge and establish new relationships.
6. Investment in a diversified portfolio (+): be sure to invest in a diversified portfolio of startups, as this will allow you to minimise risk.
7. Professional advice: it is best to start by investing with a lead investor (+), in a fund with other novice investors, in order to learn. 
8. Monitoring and follow-up: Once you have made the investment, it is important to closely monitor and follow the performance of the start-up in order to make informed decisions.

By following this plan, you will be in a good position to become a successful business angel and to make successful startup investments.

Before becoming a business angel, it is common to have questions about:

1. Investment requirements: How much money needs to be invested and what kind of investments are suitable for a business angel?
2. Risks and rewards: What are the risks and potential rewards of investing in a start-up?
3. Due diligence: How is research and analysis of the company and the market carried out before investing?
4. Active participation: How much involvement is expected from a business angel in the management and development of the company?
5. Exit strategy: How and when do you plan to sell or liquidate your investment in the company?

Questions a person should know how to answer before becoming a business angel:

1. What are my investment objectives and time horizon?
2. What are my skills and experience in investment and entrepreneurship?
3. Do I have enough capital available to invest in a start-up business?
4. Am I willing to take the risk of investing in an early-stage start-up?
5. Am I willing to work actively in the business I invest in, providing support and advice?
6. Am I familiar with the processes and legal requirements for investing in a start-up?
7. Do I have an adequate understanding of the markets and industries in which I am considering investing?

What questions should a person ask themselves before starting to invest in a startup as a business angel?

BEFORE YOU START INVESTING AS A BUSINESS ANGEL, YOU SHOULD ASK YOURSELF THE FOLLOWING QUESTIONS:

1. What do I know about the industry and market I want to invest in?
2. Do I have a clear understanding of the risks and potential returns on my investment?
3. Am I willing to take the risks and time required to be an active and effective investor?
4. Do I have a clear and well-defined investment strategy?
5. Do I have the financial and personal resources to make this investment?
6. Have I thoroughly vetted the business team and am I satisfied with their experience and skills?
7. Have I adequately assessed the soundness of the business model and value proposition?
8. Do I agree with the company's culture and values?
9. Am I willing to work with the business team and offer my support and expertise?
10. Am I willing to be patient and expect a long-term return?

The aim of mentorDay's Business Angel School is for you to resolve all these doubts in order to invest with more guarantees of profitability. Here are some short quizzes to test your knowledge on the steps to become a business angel.