It is not only in the dream world that there are guardian angels. There are also them in real life: they are the business angels, business angels, private investors in companies that are taking their first steps (the start ups).
This is a figure who was born in the United States, spread all over the world and has even reached the Algarve region, through the association Algarve Business Angels (Tab). João Pires, president of ABa, revealed to the Sul Informação that, in the region, there are already 22 of these special investors, «but we have a target list of over 31'. «We are in the process of raising new business angels in the Algarve and they exist».
And what are and do these Business Angels? They are “private and informal venture capital investors”, “individuals who have some financial availability to invest, but who have above all knowledge capital”.
Speaking at the conference «The Algarve and the Financial Perspectives», in Tavira, last Friday, João Pires explained that what these business angels they do «it's not support, it's not financing, it's an investment by an individual, with their money, who goes into the share capital of a company and becomes a partner and sometimes even works in that company. Those who invest are particularly demanding, because they go there for their money».
Despite being today the region of the country where the crisis is most acute - it has the highest unemployment rate in Portugal and it is here that the indebtedness of companies has grown the most -, the Algarve is at a disadvantage compared to the other Portuguese regions in terms of concerns the possibility of investment through the Business Angels.
Is that the community of Business Angels Currently, it has 42 million euros at the disposal of Portuguese entrepreneurs, through a venture capital fund under COMPETE. The problem is that the Algarve, as it is considered an “almost rich” region (in phasing out), is out of the possibility of accessing that fund. «We have to have this fund operationalized for the Algarve as well. There can be no discrimination”, stressed João Pires.
In spite of this important constraint, the Algarvian BA will not give up and continue to look for “businesses with the capacity for growth” in which to invest. «Together with CRIA [the Entrepreneurship Office of the University of Algarve], we are encouraging a certain type of entrepreneurship that will be more likely to interest our investors», explained the responsible for the Algarve's BA.
«Algarve Business Angels proposes to act in three essential areas: increase the number of Business Angels in the region, namely taking advantage of the foreign community residing in the Algarve; act in the regional entrepreneurial environment, in order to have more projects and prepared entrepreneurs, to receive financial resources from Business Angels; to sensitize local and regional entities in order to increase the development of programs to support entrepreneurship, according to the best practices of what happens in other regions of the country», added João Pires.
As part of the preparation of entrepreneurs, João Pires highlights the importance of the «strategic alliance with the University of Algarve», through Professor Carlos Cano Vieira.
Aiming to affirm the importance of Business Angels, at a critical moment in the country, as "key elements in the creation and expansion of companies with high growth potential", the FNABA – National Federation of Business Angels Associations promoted last week, in Portimão, the opening conference of the National Business Angels Week.
The initiative also marked the beginning of the functions of the new structure of Algarve Business Angels, which claims to be «in conditions to be the right interlocutor at the level of private investors (Business Angels). "
“Currently, due to the crisis, the investment costs related to setting up and implementing a company are significantly lower. If before, for example, it cost 100, now due to the economic situation it can cost 40, 50 or 60. There is also more availability of quality talent (human resources), which is another important factor in the decision to move forward with a new company . Right now, for many investors, banking products are no longer interesting enough from the point of view of profitability versus risk. The capital market is also not an investment alternative. The sovereign debt that has always been a refuge is no longer so. for what to be Business Angel, investing in start ups, turns out to be an interesting hypothesis for more and more investors», explained, at this conference Paulo Andrez, the Portuguese who is president of the European Business Angels Network.
For his part, Francisco Banha, president of FNABA, added that «naturally Business Angels they are an essential part of an entrepreneurial ecosystem that wants to be strong, dynamic and multifaceted. And I see as something very significant the fact that we had all together in the assistance, businessmen, entrepreneurs, Business Angels, teachers, representatives of public bodies and students. This indicates that the Algarve is very receptive to the increased action of Business Angels in the region».
«With this new structure, Algarve Business Angels is now in a position to, in an organized and effective way, bring together potential investors who wish to have access to business ideas with high growth potential. In this way, Aba is in a position to welcome the projects of entrepreneurs who need investment, to assertively present them to its Business Angels», said Domingos Silva, BA from the Algarve.
As with everything else in today's world, success in the business world is not about doing more of the same. At the conference «The Algarve and Financial Perspectives», in Tavira, João Pires recalled the Algarve's examples of recent and innovative investments in olive oil, red fruits and fleur de sel to conclude that what needs to be done is to think «our ideas around what the market wants». A seemingly simple key to the success of a company or business idea that, if it is innovative and has growth potential, could be under the wing of the business angels.
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