Enterprise college consultants advocate setting the preconditions for the connection between the entrepreneur and the enterprise angel to prosper, based mostly on ‘7C’: elementary guidelines to create added worth from this bond that goes past cash.
The ‘enterprise angels’ are people -with technical data in several markets- who’ve a monetary capability of between 50,000 and 500,000 euros; quantity of which they allocate between 50,000 and 500,000 euros (round 25% of their out there capital) in several startups that current fast progress prospects and permit a medium-term exit (between three and 5 years).
Enterprise angels solely put money into sectors that they know and dominate and that present rather more worth for invested startups than the easy monetary contribution. So, It’s important that the connection between buyers and corporations is fluid, worthwhile for each poles and developed in a constructive atmosphere.
In that sense, Enterprise college consultants advocate setting the preconditions for the connection between the entrepreneur and the enterprise angel to flourish. CEREM Enterprise College recommends ‘7C’ that we should adjust to for this hyperlink to achieve success:
- Cooperation: the enterprise angel will probably be a member of the workforce.
- Creativity: the entrepreneur should present a mannequin that generates expectations based mostly on innovation and analysis initiatives.
- Dedication: the promoter workforce will make investments all the mandatory assets in an effort to put together the marketing strategy.
Enterprise angels: what does this determine include and what varieties exist
- Competence: from the enterprise angel to the administration workforce.
- Charisma: the enterprise angel has to have the ability to switch his data as an alternative of imposing it.
- Complicity: the enterprise angel has to get alongside and perceive cordially with the promoters of the challenge.
- Management: the enterprise angel has to ascertain the management mechanisms of the administration of the challenge by which he desires to take a position.
What’s extra. we now have to remember that, many occasions, entrepreneurs can not put themselves within the sneakers of personal buyers to form their proposals in order that enterprise angels have the data they need. We discuss such related parts as:
- Analysis of the corporate.
- Potential success technique.
- Safety of minority shareholders.
- Tax features.
- Want for due diligence.
With all that, in no case ought to we overlook that belief and chemistry between the enterprise angel and the founders of the startup needs to be a vital issue. On this area we now have to unite the 2 poles of the equation in order that each share values and an identical imaginative and prescient of the issues. To not point out the necessity for specialization: it’s significantly better that this determine has earlier expertise as an investor within the firm’s sector, since on this means will probably be ready so as to add extra worth to it.