Over the past ten to fifteen years, there has been a sharp rise in the number of "business angels" and angel investor services within Australia. Business angels are generally wealthy individuals or groups looking to make an investment in a start-up business, in the hope of generating a strong return. The strategy is risky for both parties though, as entrepreneurs have to give up a percentage of the company and its operations to the investors. Likewise, the investors run the risk of funding a start-up that doesn't make it. On the other hand the potential is there. Entrepreneurs get the funding that can take their ideas to the next level, and investors get to have a stake in what may be the next big thing, and which will give them a high return on investment.
Still, the hard part for many is finding these so-called "angel investors" in the first place. Unless you have contacts and connections, you will have a hard time finding someone who has capital to invest and experience in the market. As a result, sites such as the Australian Investment Network aim to bridge this gap and connect Australian entrepreneurs to business angels located both in Australia and worldwide.
The Australian government did a report on business angels in Australia at the end of 2006, citing a wide range of investment amounts from business angels, and that angel investors make an average of eight investments each, with one or two new business investments per year. At the same time, most investors reported that at least one of their investments was deemed a "blockbuster" which is where an investment returns more than ten times the original amount. This has created an even bigger sector in the Australian market for business angels.
Hundreds of business angels from Australia (with experience in various industry sectors), and thousands more based around the world are available on our database of investors that are looking to find the right match of entrepreneurial business to invest in.