A Business Angel Network is a conglomerate of Angel Investors, whose prime concern is to facilitate the investment of Seed Enterprises and Business Start-up for investors.
Types of Angel Networks
There are three types of Angel Networks.
- Non- profit Business Angel Associations : Association of Angels facilitating Angel's investments in local Companies for a stake in the company
- Incubators- Group of Angel hosting companies in exchange for a stake in the company
- For Profit Angel Networks - Networks enabling Entrepreneurs to Meet Business Angels. They often work on a Success Fee and Entrance Fee basis.
Types of Fees
- Equity Fee- Proportional stake of the amount invested in the company concerned.
- Registration Fee- Fee paid by Entrepreneurs in order to have access to the Angel Network.
- Success Fee- Percentage of the investment paid to the Network.