Business angel

Business angels are wealthy private individuals who invest in start-ups early on – usually in the pre-seed or seed phase, when the company is still very young.

What business angels bring:

• Capital: typically €25,000–250,000 (their own money, not a fund)
• Experience: often successful founders or managers themselves
• Network: contacts with other investors, customers, partners
• Mentoring: advice on strategic decisions

Well-known business angels in Germany:

• Frank Thelen (formerly on "Die Höhle der Löwen", the German Dragons' Den)
• Judith Williams ("Die Höhle der Löwen")
• Carsten Maschmeyer ("Die Höhle der Löwen")

In return: the angel receives shares in the company – typically 10–25%. That's a lot, but in the earliest phase there are hardly any other sources of finance.

Tax: with the INVEST grant, the German state supports business angel investments: 25% of the investment is reimbursed as a grant (up to €500,000).