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BUSINESS ANGELS – PIF
The PIF business angels investment partner fund is virtually analogous to a venture capital investment, only its implementation takes place in smaller volumes and by a single particular investor.
A business angel is an individual investor or partner of PIF using its own capital to finance promising small and medium-sized enterprises with significant growth potential (usually firms at the seed or start-up stage, or at the expansion phase of their life cycle) in order to make a return on the investment.
Unlike venture capital funds, angels also invest certain know-how in a company in the form of expertise, an insight into the sector, and contact with strategic partners. As in the case of venture capital, investment input is limited to a predetermined period, at the end of which the investor sells its stake. Therefore, a business angels fund is not aiming simply to maximize the return on an investment carrying a certain degree of risk; rather, it is primarily looking for an area in which it can be actively involved by tapping into its own experience and contacts to support the growth of the company in which it is investing.
As, within PIF, business angels are individual investors, they are often grouped into specific “Business Angels Portals” in order to provide more efficient access to information and more rational capital investment. At PIF, these operations are carried out by investment specialists, who offer companies interested in the use of investors’ business angel funds a means of securing investment and services related to project preparation in readiness for the investment.