Coutts Woman

Becoming an Angel

As an active and enthusiastic investor in start up companies, Brigitte Baumann was dismayed to discover the lack of resources and information available for would be entrepreneurs and potential business angels.  This discrepancy led Baumann to found Go Beyond, a company that is focused on creating a vibrant seed capital sector in Europe and on educating potential investors on the virtues of start up companies.

‘The start up sector is fundamental to an economy,’ explains Baumann. ‘But I discovered that there are more than 500,000 business angels in America investing over $20 billion every year in start ups, while in Europe there are closer to 50,000 business angels investing between $500m and $1 billion. I thought ‘wait a minute, there is just as much good innovation in Europe as there is in the US’.

“The key thing for an angel is that they feel that they can offer help to a company in addition to money”

Baumann decided the solution was to create a company that would bring together potential new investors; experienced angels who could offer advice on what to look for in a prospective investment and start up companies looking for funds.

‘Business angels are traditionally entrepreneurs with 20 years’ experience, who were hired to build businesses but never to create them,’ explains Baumann. ‘They are usually old men who have sold a company and are now professional non-executives. They cannot relate to a lot of start ups.’

Baumann was also appalled to discover that, while 30 per cent of all European start ups are launched by women, just 3 per cent of business angels are female.

‘Businesswomen on career breaks can be fantastic business angels. They have already shown their value, so why can’t they mentor and invest in start ups. It is a great way to restore confidence before returning to the workplace,’ adds Baumann.

Go Beyond is targeted at potential investors who are high net worth individuals, who would never put more than 2.5 per cent of their funds into one investment. Baumann believes it is quite possible to be a successful business angel with a budget of between £10,000 and £30,000 per investment.

‘We can group potential investors together,’ she explains. ‘We offer a training programme to show them how to work together.’ Most angels look for an exit from their investment after two or three years.

“Businesswomen on career breaks can be fantastic business angels”

Go Beyond offers several courses to help business angels learn the ropes. ‘We encourage a small group, perhaps of ten new angels, to first work with an experienced angel,’ she explains. ‘They would be presented with theoretical business plans from two start ups, who each give five minute presentations. The angels can ask questions and then there is a debrief afterwards.’ They may meet for four to six weeks.

Go Beyond offers courses explaining how to identify opportunities, evaluate them, negotiate on terms, manage the relationship and exit. The legal aspects of business partnerships and how to conduct due diligence on a company are also taught.

‘We hold the angels’ hands,’ explains Baumann. ‘Some angels take a year to gain the confidence to make their first investment. Others want to go really fast. But the key thing for an angel is that they feel that they can offer help to a company in addition to money. Some may want a board seat. If a group is working together, then they may get one representative on the board.’

But Baumann rejects any comparison to Dragons’ Den, where four successful entrepreneurs regularly humiliate would be businessmen on television, pulling their business plan to pieces and offering finance for majority stakes.

She adds: ‘We say to start up entrepreneurs ‘This is your company, all your sweat and tears, we are here to support you and help you achieve your ambitions’. We treat them with dignity and respect.’