Business Angels in Sweden

For a start-up lack of resources is the biggest problem. Sometimes it can be money, network, customer or can be consultancy.The obvious reason for looking for a Business Angel is that, due to the high risk and uncertainty the early company phase conveys, usually no other than business angels are willing to invest. Further, the angel’s network of contacts is
an important advantage. Also, the experienced board of directors can refine the company. They can help to companies in these aspects :

Capital in order to hire staff, purchase machines and equipment, and cover upfront costs.

Competence in order to obtain knowledge and skills in how to carry out a specific task.

Contacts in order to obtain a network of people who can help your business in different situations.

Consultation in order to obtain experienced advices.

I believe that when B.A. are dealing with an entrepreneur, they are mainly looking for these; personal relationship, entrepreneur’s enthusiasm and trustworthines, reasonable business plan, potential for the product or service and finally of course for the income.



Business angels can be divided into two different types: active angels and potential angels (Krá ovi &Hyránek, 2005). Refer to the graph above active angels divided into four different groups. For an entrepreneur it is important to know his/her aims and business plans and goals before negotiating with an B.A. For me entrepreneurial B.A. are the best because generally they are coming from an entrepreneurial back ground and they had great network for the specific businesses.

The entrepreneurial angel differs from the other types of angels by having entrepreneurial experience from earlier business, being richer and more active. In addition to the main purpose with their investment which is to get better financial gain on the returns compared to other investments, they also sees informal investing as fun and satisfying.

Last but not least; i strongly advice to entrepreneurs in Sweden to have a look at to these web pages:

EVCA

Swedish Private Equity & Venture Capital Association

CONNECT

REFERENCES :

http://www.connectsverige.se/cldoc/inenglish/96.htm

www.diva-portal.org/diva/getDocument?urn_nbn_se_hj_diva-588-1__fulltext.pdf