Funding and guidance

Business Angels is a service that effectively brings together startups looking for funding and guidance, and private investors willing to provide it.

The term "business angel" refers to financial backers who invest their money and their skills in an enterprise in order to increase its likelihood of success. These are just the sorts of people Business Angels has on her books.

Many are retirees looking to invest part of their retirement savings but also keen to contribute their business acumen to a fledgling venture. However, Founder of Business Angels Christine Kaine says a growing number of investors are "in their thirties and sick of corporate life, but have fantastic business skills and want to be involved in small business". That said, not all investors will want to be active in the business.

Investors and entrepreneurs initially pay between $150 and $350 (Please note that fees have increased since this article was published) to register for the service, and a flat fee of 2% of the sum invested is payable to Business Angels Pty Limited once a successful match has been made linking investor and entrepreneur. Most of Business Angels' clients are looking to invest up to $500,000, but she handles ventures seeking to access up to $2 million. Your adviser or accountant should be involved in the process. More information at www.businessangels.com.au. You can also try www.business.gov.au.

 Chris Walker

Money Magazine

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