Business Angels: Signals for High-Tech Companies

This monograph is the result of a research project based on the idea that the creation and development of companies rely on an underlying entrepreneurial and managerial culture as well as on the choice of the most effective investment/finance relation that the company is able to make. The research project is the product of the research question: What’s best for companies in terms of the investment/finance relation? Sometimes debt capital can be considered for less invasive decision-making. It may happen that during discussions about the details of the agreement, Business Angels perceive hostility and abandon the project. The area of recruiting is a major issue for any Business Angel. Each Business Angel uses individual style to develop his program of creating a desirable environment for a prospective company. Business Angel would benefit from their experience in both areas (finance and management). The risk resource would be an invaluable factor in investment: the choice of investment can be made in a short time. Sometimes, in order to achieve the hoped for level of success, they demonstrate their knowledge: they know exactly what a company need to develop because they know what mistakes they are making. In contrast, the company does not have this expertise. By presenting its program, the company’s reputation could be greatly enhanced. In my opinion, when the entrepreneur sees a high profile level of Business Angel, she/he will accept financial resources, will demonstrate interest in his/her strategic competence and will be much more likely to interact with Business Angel. Business Angel can create an arrangement with his manager to allow a new perspective of analysis by providing a quality learning experience for all the members of the company. Companies, in fact, can have an excellent manager, but few performing abilities or little training. A good Business Angel would demonstrate his “excellent” abilities both as a performer and an educator. When a research project has been drawn up, there are many opportunities and challenges to be met. As a result of my extensive research into one thousand companies, I believe that I have acquired a wealth of knowledge about companies. Finally, there is certainly considerable room for developing the study further, although it constitutes, with the results it has achieved, a fundamental resource for future researchers in this area.