It may be impossible to typify what drives investment decisions by individual Informal Investors or "Business Angels". Their motivations are many and quite diverse. Typically, Informal Investors or "Business Angels" tend to invest locally and in business sectors in which they have some experience.
In general, they apply less restricted investment criteria and may have lower growth and IRR expectations than Venture Capital funds. Non-economic factors, however, like the personal fit with the entrepreneur, may be quite important.
The size of the investment is a major factor. Individually, their investments may be quite small (around 50,000 Euro initially) but in syndication, considerably larger sums may be available. If the company keeps growing rapidly, other sources may have to be sought for follow-on financing.
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