How To Find Business Angels In Austria

Incubators, Accelerators, Investors, Business Angels: words young entrepreneurs like to toy with when it comes to opening a business. At the Business Week in Vienna, well-known figures of the Austrian startup scene discussed where young businesses could find financial help and advice to get them started.

Why A Business Angel Is The Person To Go To

During a panel discussion, Hansi Hansmann, a familiar face in the field of startup development, explained why a business angel might be the person to go for if you want to start your business.

“An investor has money and wants money. A business angel supports startups with more than just monetary capital. A business angel donates financial, social and human capital. Social capital refers to a business angel’s networks the founders can use. Human capital summarizes the advice and expertise the business angel can provide.”

While networking almost always helps in finding inspiration, advice or new team members for ones startup, finding business angels is not always easy.

“Mind you, a Business Angel takes the risk of losing every cent of his investment when the startup does not take off. Chances are none of the effort pays off and the startup disappears within a year”, Hansi Hansmann explains.

That is why there are not as many Business Angels as the startup scene would need.

But They Exist & Here’s Where You Find Them:

The first stop you’d want to go to is the network of aws i2 Business Angels Austria, an agency that matches private investors and companies nationwide (detailed info can be found here). Investors as well as startups looking for funding opportunities get full transparency and personal support. i2 lists 250 angels, and also hosts events like the Business Angel Summit & Business Angel Day.

The AAIA (Austrian Angel Investors Association), represents a platform where about 150 business angels and investors can meet, discuss projects and exchange experience. Startups that would like to work with them, can either meet the business angels at events or simply email their business plan or pitch to the AAIA. The business angels then scan the plan and if there are people believing in the project, they will support it. Either way, positive or negative, you’ll get a reply within a few weeks time.

Another possibility is the Club Deal AG – an exclusive club for business angels from the DACH region. Their members benefit from professional investment management & consulting services, their various partners and much more.

What You Need To Approach Business Angels

The best way of presenting ones idea is to create a one-pager that contains all the vital facts such as

• Which problem will the business solve?
• How will the business solve it?
• Who will work for the business?

Hansi Hansmann points out that having a team is one of the most important things business angels and investors look for when choosing a project. Apart from the one-pager that every startup should always keep in their top drawer, there are a few more things one should have at hand and be able to present even at short notice.

1. Always have a presentation ready to clearly explain what your business idea looks like. This presentation should be 10 to 15 pages long. It contains everything an investor or business angel needs to know before investing his time and money.
2. Always be prepared to wow them with an elevator pitch. Practice putting the most important things about your business into a one-minute presentation. The emphasize here lies on PRACTICE. Talk to your mirror a hundred times or more so you can be sure you say the right things when you meet the right people.
3. Show that you use your own product! The success of businesses like Runtastic is partly due to the focus on products the business founders use themselves. The reason why they keep coming up with new ideas and developments is because they want to improve a product they use for their everyday life. This creates a completely new way of looking at products and services and gives you the opportunity to solve problems that not only you, but a lot of others might have, too!

Now that you gained a look into how and where to approach your very own business angel, go out there and get it going! Wow them with a proper plan and benefit from the expertise of real business veterans!

 

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