Business angel

In practice

An angel invests when an idea is convincing, often before there is any revenue. Someone who invests their own money decides alone and quickly, and is not tied to the term of a fund when it comes to the exit. The amounts are usually between EUR 50,000 and EUR 250,000. They go into the company through a capital increase or are provided as a convertible loan. But giving away too many shares early on makes the next round difficult, because investors expect a cap table in which the founders hold the majority. Angel agreements are often brief, with no vesting or tag-along and drag-along provisions, and can later be corrected only with the angel’s consent. So agree the same basic rules as in a later round, even for small amounts.