Commission publishes 'benchmarking business angels' report
The Enterprise DG of the European Commission has published a new benchmarking report which identifies best practice in public sector support for business angels. Business angels are individual investors who finance and advise start up companies. Through sharing their experiences and providing investment to entrepreneurs, these individuals can make a significant contribution to European growth and employment, and create a more entrepreneurial culture. Start-ups rely more and more on business angels for early stage financing, as venture capital companies have cut back on small scale investments, and banks are moving away from this sector on account of high overhead costs. In recognition of their increasingly important role, the Commission created an expert group to examine public sector opportunities to support and stimulate the activities of business angels. The expert group was composed of representatives nominated by governments and private sector specialists. The work of the expert group focussed on the assumption that, based on observations in a number of fora, the potential investment capacity of business angels in Europe has not been fully utilised. One key area for development identified by the report is the creation of business angel networks that can match investors with projects. Recommendations outlined in the report's conclusion include initiatives to raise awareness of business angels, the creation of a business angel panel to discuss issues relevant to the angel community, and ensuring public financing for business angel network operations.