This document discusses how entrepreneurs can establish relationships and agreements with business angels when seeking investment. It notes there are two types of business angels: those who like to negotiate terms of deals and those who don't. For those who negotiate, the document outlines important questions entrepreneurs and business angels should consider, such as how the company will be evaluated, what guarantees can be provided about future investments, what value the business angel can add, and how exit opportunities may occur.

1. Relationship with Angels
How to establish a relationship
and an agreement with a
Business Angel
JanBendtsen.dk

2. There are two types of business
angels:
Those who like to negotiate the
terms – and those who don’t.
JanBendtsen.dk

3. Those who don’t negotiate
JanBendtsen.dk

4. Those who negotiate
JanBendtsen.dk

5. The entrepreneurs questions
• Is the business angel seriously interested?
• How should the company be evaluated?
• How will the active involvement of the
business angel be – and how can it be
guaranteed?
• How can I make the business angel open
his network?
• How can can I secure my control of the
company/patent?
JanBendtsen.dk

6. …more entrepreneur q’s
• How fast can the money get into the
company?
• How is the structure of the deal?
• What are the business angels claims
about board membership and
reports?
• Which guarantees can be given
about further investments?
JanBendtsen.dk

7. The business angels questions
• What kind of value can I add to the company?
• How are the stocks valuated?
• How do the entrepreneurs act? Do they seem to
be able to cooperate?
• Which structure is reasonable for the deal?
• Are the entrepreneurs businessmen?
• Can I work with the entrepreneurs?
• Which exit opportunities seem possible?
JanBendtsen.dk

8. …more business angel q’s
• What is the level of salary for the entrepreneurs?
• Does the company own all intellectual property
rights?
• How much work must I put into the company –
paid or unpaid?
• Does the deal involve a risk for bad reputation?
• How can I make control of the company?
• Is it possible to make further investments at a
fair price?
JanBendtsen.dk