Who are business angels?

Who are business angels?

Business is as full of beauty as its language. There are even angels here.

Let's take a closer look at this concept. A business angel, angel investor is a venture capital investor who gives financial support to a company/project/enterprise in the early stages of its development.

In Russian, there is the word "patron" which refers to the same phenomenon. But you have to agree, it doesn't sound that nice.

In English, the term began to spread in 1978, when an article by a University of New Hampshire professor described such angel individuals who support small businesses. This article sparked a wave of venture capital research at the U.S. government level. That is, the professor picked the right word, hit the bull's eye.

But he didn't invent it himself. The concept of "angel" was used before, only in the theatrical environment. The angels were people who supported the arts, who invested in risky theatrical performances without expecting much success. If there was success, the angel investors got their share of the profits.

The peculiarity of angel investment is that one invests privately, quietly, informally. As a rule, no one knows who gave successful projects life, who was the angel, with whose money the project emerged. There is no romanticism here. Today, an angel investor is a very experienced investor, a successful entrepreneur who supports promising innovative projects and technologies when no one else knows about them yet. That is, today the "angel" is very calculating and far-sighted.

Since investment, thanks to crowdinvesting, became available to ordinary people relatively recently (XX century, in some countries - XXI century), the concepts are constantly confused in this environment. And now experts have to argue that investors in crowdinvesting are not angels. An angel is a well-off person who invests a lot of money at once, enough to get the project up and running. Crowdinvesting involves a minimum investment that anyone can afford. As much as we would like it, we are not angels. But so far, in a certain context, anyone who supported the project "Duyunov's motors" in the early stages can still be called that.

Nevertheless, if you have an amazing business idea right now, but lack the funds to implement it, we hope you'll meet your business angel! And in order not to have to wait too long, you can take advantage of the opportunities open to the investors and partners of SOLARGROUP - and become your own angels.