“Venture financing is not an easy walk in the autumn forest, but a separate story with risks and features,” Andriy Komarovsky, CEO of Sector X

23 June, 2020 UNIT.CITY INNOVATION PARK

Business angels in Ukraine and abroad are a number of reasons — among them, in particular, the desire to earn not a million tomorrow, but 10-100 million in 10-15 years, self-realization, new meanings of life and investment diversification. How and why they become business angels, what is the difference between Western and Ukrainian investors and why being a business angel is life inside a startup, said Andriy Komarovsky, CEO of the accelerator hub Sector X.

Entrepreneurs with a certain amount in their pockets, who are ready to invest in young startups, often become business angels.
Investor motivation is the desire to increase income, coexist with their peers, and understand the system from within.
In the West, investors are successful entrepreneurs or top managers of large companies, in Ukraine — often owners of classic companies, officials, and Ukrainian entrepreneurs with experience in selling startups.
To become a business angel — you need from $5-20 million, which is not afraid to lose, a sincere desire to understand the world of technology, contact with a community of their own kind, and trends in various industries.
Most business angels unite in clubs, associations, and unions. This is the best choice in terms of minimizing risks, increasing knowledge, and access to good projects.
The main features and risks of such an investment are the loss of funds, a mentoring approach to the team, rather than an attitude as an employer and a long game where planning for a maximum of one year ahead does not work.

Read more about why you need to become a business angel, how to successfully buy and then resell a startup, and the experience of successful investment professionals in the column for Vector: “Shameful questions about the venture. How and why do they become business angels?”