Who are business angels?

Business angels are successful businesspeople who in the past have already built one or several successful companies. Their financial situation enables them to invest in also very risky investments, such as ‘start-up’ companies. They are normally the first external investors into the company, before venture capital funds or other financing sources. When investing into a specific company the emotional component is also present, as business angels wish to help young entrepreneurs to build their company and at the same time relieve their own success.

What is a business angels club?                                                                                       

This is a legally, formally established association of successful businesspeople who also wish to be business angels. The primary aim of the club is to identify entrepreneurs, ready to be financed in a proprietorial way, to finalize the investment documentation, develop concepts and connect the entrepreneurs with the investors – the members of the club. It is an intersection among the most ambitious entrepreneurs and investors.

Who is the club aimed for?

The club is aimed for all companies in the seed or early growth phase, it can be ‘spin-off’, ‘start-up’ or any other form of establishing a company. What is essential is, that we wish to identify business projects or companies with the potential to grow fast, with an excellent management and a to a certain extent set exit strategy for the investor out of the company. On the other hand the club is aimed for successful Slovenian businesspeople, who would like to work as business angels.

What are the investment conditions?

The investment, wished for by the company, should range between 50 000 and     300 000 euros. We encourage syndicated investments, which means that several business angels work in the same project. Investment mechanisms are proprietorial financing, convertible optional loans or other executed financial instruments. There are no limits in terms of branch, the only limit is that the company runs an ethical and morally undisputable business. Important criteria are also the investment period, which ranges from 3 to 5 years, or the required profit, which should be at least 30% on a yearly basis.

 Who can become a business angel in the club?

Two rules apply in proprietorial financing. The first one is that it is some kind of ‘wedding’ between the investor and the entrepreneur, which means, that the relationship must be ruled by trust, honesty, there also has to be adequate chemistry. Therefore we are looking for those Slovenian businesspeople as well as investors with high integrity, which they have proven in their business. We are also seeking entrepreneurs with high integrity. 

The second rule is that the investor never invests money into an idea, but into a person, as he/she believes in him/her, sees potential in that person and is positive the entrepreneur can fulfill what is written in the business plan. This means the following for the entrepreneur: focus, hard work, dedication, overcoming of obstacles and other things. When the entrepreneur has overcome all obstacles and has grown as a personality, he/she can build his/her own success story. 

The business angel can be of the utmost help to the entrepreneur if he/she has already gone through the same process. Therefore only successful Slovenian businesspeople, which in their own history have built one, or in most cases more successful companies, can become members of the Slovenian Business Angles Club. They are renowned as the best Slovenian businesspeople and most of them overcame similar obstacles, which will have to be overcome by the entrepreneurs, into which they invest. As such business angels can adequately help entrepreneurs with other added values, such as assistance in strategic decision-making, knowledge on the branch, technology, etc., they can identify real entrepreneurs much more easily.

Is the Slovenian Business Angels Club the first club of its kind in Slovenia?

Yes, it is the first club of its kind in Slovenia and the initiative came from the economy.

What does a business angel expect from an entrepreneur and what does the entrepreneur gain?

This is a completely ‘win-win’ situation, as the business angel invests into a risky investment, which also gives him the opportunity of high profits and the possibility to actively influence the investment, at the same time he/she however also once more relieves the success during his/her career. On the other hand the entrepreneur through a business angel gets an experienced mentor, who aside from financial capital also invests all his knowledge, experience and contacts in the company. The entrepreneur can then build a successful company in 3 years, not in 15, and with appropriate advice the entrepreneur can avoid several negative experiences.

We also cannot ignore the whole process before the actual investment, which also has an added value for the entrepreneur. The aim of the process is to eliminate the most frequent reasons for companies to fail and to realistically evaluate the entrepreneur’s business opportunities. We can also help the entrepreneur with planning, projections, the forming of a financial model, etc. Throughout this process entrepreneurs often get new business knowledge and ideas, which can be essential for the foreseen success of the company.