Investing in Private Companies – Insights for Business Angel Investors

 

Investing in Private Companies

Insights for Business Angel Investors

 

This publication is the result of an agreement signed between EBAN and HBAN with the purpose of serving the organisations’ mutual goals of increasing the quantity, quality and success of angel investments in Europe, thus creating a better understanding of angel investment for potential new angel investors and entrepreneurs.

This guide has been prepared to demystify investing in private companies for private investors (known as business angel investors). Investing in private companies is very different to investing in other asset classes and whilst high risk, can be rewarding and worthwhile with positive financial and non-financial outcomes.

The current document is an adaptation of the original version with the same title which was initially targeted to the Irish market. The reproduction and/ or adaptation of this guide by other parties is subject to approval of EBAN and HBAN.

 

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CONTENT

Executive summary
Introduction
Equity raising process
Top three investor criteria
Company executive summary & business plan
Funding requirements
Valuation and terms of investment
Angel syndicates
Conclusion

Appendices

Sample commercial and legal due diligence questionnaire
One page investment summary example
Sample term sheet
Sample syndicate charter