How to Leverage Your Business/Technical Background in Angel Investing

Angel investing has evolved, drawing individuals with business and technical expertise. Beyond capital, they leverage their skills to drive startup growth, emphasizing the evolved role of modern investors.

Start Referring

Fill out the following form to jump onboard our referral program and enjoy the benefits!

Thank you, we have received your referral and are currently reviewing it!
Oops! Something went wrong while submitting the form.

Many people know angel investors as the wealthy elite, however angel investing has become more common and more enticing as a strategic decision among individuals with business and technical backgrounds, not only because they can diversify their investment portfolios, but also are given the opportunity to actively participate and learn from the growth of early-stage startups. Aligning expertise with startup potential has proven strategically rewarding for investors, founders, and the startup ecosystem. These angels are cutting checks as small as 5k sometimes, but still being accepted into the company given the insights they offer and networks they come with. 

Understanding Angel Investing

Angel investing isn't just about giving money to startups in their early days for a piece of the pie. It's more than that. Beyond the financial boost, angel investors offer priceless insights, mentorship, and industry connections that are crucial for startup success. In the early days, many founders seek industry leaders to act as advisors to their company - so if they find an angel that is willing to invest, that also has a background that can be leveraged, they are very keen to get this angel on board. This partnership fuels innovation and lets investors dive into new tech and groundbreaking concepts.

Leveraging Business Backgrounds

For individuals with a business background, angel investing presents an opportunity to use their experience in areas such as strategy, marketing, operations, and finance to help catalyze operations in young startups. Moreover, your business contacts can open doors for startups, from potential partnerships to customer acquisition opportunities.

Christian Vollman, a notable German investor, serves as an exemplary figure in this context. With a portfolio spanning various industries, from tech to finance, he excels in identifying and supporting promising ventures. His role as both a serial investor and mentor allows him to provide valuable insights to companies from his experience, making him a desirable angel to have on your side and establishes him as a seasoned business influencer. You don't have to be Christian Vollman with vast start up and angel investing experience to assess exciting opportunities, by drawing on your knowledge, business-savvy angel investors can evaluate startups' potential for growth, market fit, and scalability.

Leveraging Technical Expertise

Alternatively, those with technical expertise can assess startups from a technological angle. Gauging product viability, unique tech features, and scalability are vital for smart angel investing. Your technical insight can be invaluable for startups in the product development phase. By providing feedback and suggesting improvements, you can ensure that products are market-ready.

German investor and co-founder of GitHub, Scott Chacon, with his software and tech startup investments, demonstrates the impact of tech insights on smart investments. Tech-savvy investors can also aid in product development, risk assessment, and linking startups to networks.

Cross-Collaboration for Success

Successful angel investing often relies on diverse collaborations among investors. Merging business acumen with technical insights creates holistic startup support. With over 1,000 investors on bunch, we see just how strong the pull is towards angels with backgrounds relevant to the startups they are investing in. Angels on bunch range from doctors investing in health companies, engineers investing in software companies, and business professionals investing in areas such as fintech and HRtech. Additionally, the platform also has, to artists, musicians, and athletes investing in creative companies building tech in their respective industries.

Leveraging your business or technical background in angel investing is one way to get access to opportunities that were traditionally reserved for large ticket investors. You contribute to innovation, nurture entrepreneurship, and potentially gain financially. These insights can guide you to success in Europe's dynamic startup and investing scene. Your expertise is pivotal for both your growth in your area and backing promising startups. 

Frequently Asked Questions

1. How can a business background aid in startup selection?
A business background equips you with industry insights, operational expertise, and networking skills, which can be instrumental in identifying startups with high growth potential.

2. Why is technical expertise crucial in angel investing?
Technical expertise allows you to evaluate the technological foundation of startups, ensuring your investments are in ventures with future-ready tech solutions.

3. How can one build trust with potential angel investors?
Building trust involves maintaining transparency, demonstrating long-term commitment, and showcasing a track record of successful investments.

Disclaimer: The content presented herein is solely for informational and discussion purposes only. It is not intended to serve as legal, tax or financial advice or as an endorsement of any investment strategy. bunch does not provide legal, tax or financial advice. Readers should not base their investment decisions on the content presented herein or any other bunch-generated content alone and should seek appropriate professional advice. Nothing contained herein shall constitute or imply an offer to sell, purchase or enter into any transaction in respect of securities. The content contained herein is subject to change without notice. While we aim to present accurate and up-to-date information as part of bunch’s content, we undertake no obligation to update our content from time to time.

Authors

Cheyenne Lake
Sales & Customer Success Lead

Cheyenne is leading sales and customer success at bunch. Prior to joining bunch, she worked for a US invest-tech company where she saw many Europeans try to set up their funds and SPVs. From there, she decided to look towards Europe to help build a local solution that caters towards European investors and thus joined bunch. Before entering the invest-tech space, she spent nearly a decade working in business and contract law in the US, including SME mergers, acquisitions, and sales.

bunch Logo

The OS for private market investors

The one-stop shop to set up & manage
investment vehicles for
founders, investors and funds.

Book a demo