Stephanie Macht, a researcher in small business strategy, has surveyed 71 angels about their post-investment involvement and found that activities such as formulating strategies impact most positively upon investees’ success. The study also concluded that becoming an employee or a member of the company’s management team had the least positive effect.
Despite the widely acknowledged importance of business angels to UK small firms, little was previously known about their involvement and impact after they have invested. Miss Macht said she hoped her study would shed light on how growing companies can best work with their angels. “Although two thirds of business angels said that gaining return on investment was important to them, more than half also said that the enjoyment of supporting the entrepreneur through their knowledge, skills and network of contacts was a strong motivation for investment,” she said. “Using angels’ expertise and enthusiasm to advise the company strategically is clearly the best use of their time as opposed to getting them involved in day-to-day matters.” On average angels spend one day a week in their investee company, the report said.
Seventy two per cent of business angels questioned for the study had both founded and owned a small business before, but only 32 per cent stayed within industries in which they had prior work experience. Only a quarter of responding angels had ever received some kind of formal training or mentoring.
One business angel involved in the study was Tony Douglas, who has been investing in North-East companies for a decade. Having spent 10 years in his own defence and image analysis company, Joyce-Loebl Ltd, Mr Douglas sold up and joined a business investors group. He has invested in a total of 17 businesses including a music venue, magazine publisher and translation company, but only two have reflected his own expertise in electronics engineering. His latest pursuit is Current Thinking, where his angels group has invested £100,000, and he has recently taken on an executive role. “Typically I’m looking to double my money in three years, or gain a higher return over five years,” he said. “On average this happens in one or two out of every 10 investments and between four and six fail altogether.”
Mr Douglas said the Newcastle Business School at Northumbria University findings mirrored his own contribution. “Like any investor I want to make money, but I like to think I bring a lot more to the table including sales ability, knowledge of the market and a sympathetic ear,” he explained. “Not everyone can be a managing director, but angels are hired on the assumption that they have been successful in running their own business and know how to make money. That’s why involvement in strategic development is a must for any business angel in a young or growing company.”
Phil Smith | alfa
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
A new manufacturing technique uses a process similar to newspaper printing to form smoother and more flexible metals for making ultrafast electronic devices.
The low-cost process, developed by Purdue University researchers, combines tools already used in industry for manufacturing metals on a large scale, but uses...
For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.
To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...
For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.
Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...
Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.
A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...
Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.
"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....
13.07.2018 | Event News
12.07.2018 | Event News
03.07.2018 | Event News
20.07.2018 | Power and Electrical Engineering
20.07.2018 | Information Technology
20.07.2018 | Materials Sciences