“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
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?”