FiBAN Monthly: Strength in numbers: Angel networks
March 08, 2021
There are as many ways to be an angel investor as there are angel investors. According to our data over 80% prefer to invest in syndicates, so there is a bias to act in a group, but the why, how, what and when differs greatly. Regardless of one’s background, experience or goals there are multiple advantages to being in an angel network.
The most obvious benefits that a membership in an angel network can bring is connections to potential co-investors and deal flow. But what does that really mean? At FiBAN, this means getting to know 650+ other angel investors with varying backgrounds and complementary expertise, from all over Finland and with a strong international presence as well. This also means access to a deal flow platform with up to thousands of investment opportunities coming in yearly. With up to ten events monthly, there is always something happening.
Another important aspect of being a member of an angel network is training and materials. At FiBAN this means the opportunity to participate in our Academy training program, either via live sessions or by watching our online academy. Who better to learn from than experienced angels or other professionals who work with startups on a daily basis. Investing and legal are tied together. Or should be. To ease the hurdle of investing, for our members, we offer a variety of necessary contract templates from Shareholders’ agreements and term sheets to option agreements and sweat equity agreements.
A strengthening addition to our network is our partners. Their services and competence bring valuable help for our members. Be it from legal assistance to spot-on services, to money-saving discounts and bundles to credit to leverage the round. Whether it’s internationalization, HR, accounting, or piloting, to name a few, our partner network can help boost a portfolio company forward.
Angels are supported by the environment they operate in. By pooling the voices of many, we can make angel investing more well-known and influence the operating conditions. We take an active role and participate in all relevant public sector initiatives impacting angel investing. At the heart of our efforts is our data, on which all new policies and efforts should be based on. Transparent statistics and analysis can ease an investor’s decision. What are typical valuations per sector? What are median ticket sizes and equity stakes per round? The opportunities are endless.
Investments rarely go as planned, they may surprise in the best of ways or the worst of ways. When things are tough, ensuring credit rating protection is key. When things are going well, celebrating success is essential!
Ready to expand your network, toolbox and dealflow? Why not join FiBAN? You can have a look at our membership options here.
Ps. There are thousands of business angels networks in the world, all of which operate slightly differently. Naturally, I am speaking for the one I represent.
Pss. FiBAN Monthly: News and views is a monthly series launched in October 2020. A new post will be shared each month, alternating between FiBAN Chair of the Board Reima Linnanvirta and yours truly. In case you missed Reima’s letter from February, you can read it here.
Managing Director, FiBAN