Power, S.A. and Robinson, J. (2009), ”Do business angels benefit their holding companies?”, International Journal of Entrepreneurial Behavior – Research, Volume 15, Issue 2, p. 187 – 208, www.emeraldinsight.com/doi/full/10.1108/13552550910944575. The European Angelic Fund – Fondo Isabel La Catélica – is a 30 million euro initiative financed by the EIF, the Instituto de Crédito Oficial (ICO) and Neotec, created in December 2013 to provide equity to business angels and other non-institutional investors for financing innovative companies in the form of co-investment. Chile`s experience can provide useful knowledge to many emerging economies. Since 2006, the Chilean government has financially supported 12 angelic networks in the country through its development agency CORFO and financially supported three of them in 2015 (Chile Global Angels, Dad Neos and Mujeres Empresarias)4. A total of 2,882 million CLPs have been approved and 1,594 million CLPs have already been renewed between 2006 and 2015. Nevertheless, despite the Chilean government`s active participation in investing a significant number of wealthy individuals with capital, the relatively favourable business environment for private equity and macroeconomic stability (compared to other Latin American countries) remains limited.
Between 2010 and the first half of 2015, existing Chile Global Angels and Dad Neos networks invested a total of $4.6 million in 22 projects. This section gives a general reference to the evolution of fishing investments in the visible part of the market, i.e. investments made through a network or union of angels that are therefore registered (see Box 2.1). However, as section 2.4 indicates, many investments in angels take place outside networks and other portals and are inherently difficult, if not impossible, to measure and study. Over the years, convertible bonds have become more popular with Angel investors and entrepreneurs because they balance both parties with the goal of maximizing investments. In the EU-28, the number of active business angel networks has increased significantly over the past 15 years, from less than 150 in 1999 to more than 200 in 2007 and 465 in 2013 (EBAN, 2014). In the United States, the number of active business angel groups also increased from about 100 in 1999 to 300 in 2008 to nearly 400 in 2013 (ACA, 2014). Common shares are residual value shares of the same class issued to the founders of a start-up.
Convertible preferred shares are shares that have a liquidation preference over common shares (with Engel transactions, usually the initial price of the investment) and can be converted into common shares of residual value. Among the most frequently accepted sources of supply are investor trading partners, professional sources such as lawyers, accountants and consultants, other business angels and early-stage investors such as venture capitalists, previously funded entrepreneurs and contacts from universities, business schools and research centres. To find reliable investment opportunities, investors rely heavily on their personal network and existing relationships. Although many networks accept business plans through their websites, it is quite unusual for them to go beyond the pre-screening phase and actually lead to an investment (Cohen, 2007). The willingness to invest a company seeking financing can be defined as the entrepreneur`s ability to understand what the investor wants to know and answer questions with appropriate information and the presentation of a business model that will be convincing to the investor (European Commission, 2006).