Business angel survey – learner, hobbyist or unemployable?

16Nov

Simon Bond

Category: News, Silicon South West
Tagged: , , ,

What makes a business angel? South West investor Brian Dorricott has been asking this question, and has put together a quick survey to see what motivates early stage investors.

The reasons that Business Angels make investments that he and some like-minded investors came up with are:

  • To make money. Want more money out than you put in? Then that’s converting your time and investment into a bigger reward in the future.
  • To get involved with private companies. If you think it’s fun working with the leaders of unquoted, private companies then this may describe you.
  • To learn new things. For some people, life is all about continuous learning. Being a Business Angel gives you experience rather than text book knowledge.
  • As a hobby job (unpaid). At the moment you may have lots of spare time and want to do something useful with it.
  • To find a job (paid). Perhaps you have some money to invest but still need an income to survive in the long term. A full time job may be what you are seeking in companies that you invest in. Perhaps this is really a “MBI” (Management Buy In).
  • To help the community. You want to help a good cause; something that will benefit everyone in the long run.
  • Because a friend of a friend has a business. You stumbled into being a Business Angel because you wanted to help a friend, a friend of a friend or member of your own family.
  • Something to talk about at parties. Helping a company can provide you with great stories and anecdotes that are good at parties or after-dinner speeches.
  • Next life chapter. You’ve done the MD / CEO / FD / etc. role and now it’s time for something different. So being a Business Angel is another chapter to your life now that you earned enough to be comfortably off.
  • Unemployable. Let’s be realistic. You’re unemployable and have some cash. So being a Business Angel is a good job title until we work out what to do!

The survey aims to get 50 responses, and the answers will be posted on Brian’s blog and here.

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