What are business angels and what role do they play in start-ups?

Business angels (also known as angel investors) are high-net-worth individuals who invest in young, growth-oriented companies. As well as capital, they often bring entrepreneurial experience, industry knowledge and a valuable network to the start-up.

Business angels are particularly important in the early stages of a company’s development, when start-ups often do not yet have access to traditional sources of funding. They not only provide financial support, but also frequently offer strategic guidance.

Typical contributions from business angels include:

  • Provision of seed capital in the early stages
  • Mentoring and strategic consultancy
  • Access to networks and potential customers
  • Support with business model development and scaling
  • Support with preparing for further funding rounds

Through this combination of capital and expertise, business angels can play a decisive role in accelerating the development of a start-up and increasing its chances of success.

For start-ups, gaining access to suitable investors is often a key milestone. innoWerft helps founders prepare for meetings with business angels, refine their business models and forge the right connections within the innovation and investment ecosystem.