How does being an angel investor work? It is possible to invest smaller amounts

For years, the startup market has been restricted to the money people. However, that is a thing of the past. Have you ever thought about being a angel investor? That hard-earned money that you have saved, or even that you received from something accumulated, can become a good return in this modern world of good ideas. The good news is that Curitiba is home to large companies that started small and that today are examples to the world, the so-called unicorns: companies valued at more than a billion dollars. Being an angel investor, it is possible to invest from R$ 3 thousand and have the chance of a full financial return.

The expression investor is not new, because there has always been someone who encouraged the work of others with money, the former patrons of history who contributed to artists such as Leonardo da Vinci and Michelangelo. A few years ago, this word could was used as a partnership or sponsorship.

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Now, with almost everything being done in the digital world, the financial side has changed the way investments happen. The savings account is not a thing of the past, but it has lost its charm due to the little income it provides. The ball of the moment are startups or, who knows, go for an angel investment.

For these companies to become giants with billions of dollars in their accounts, they need to be structured in several segments so that they have a movement that results in revenue with the delivery of quality products and services to the customer. For this, investment is needed, and they seek this resource with the so-called public investment offers, via Equity Crowdfunding platforms authorized by the Securities and Exchange Commission (CVM).

Angel Investor with BRL 3 thousand

Photo: Pixabay.

With the need to have the money, companies need the investor, that is, the so-called angels. This nomenclature emerged as a form of protection for this network to form and increase in order to fulfill the company’s goal.

Linda Machado, President of the Curitiba Angels, founded in 2014, reports the importance of angel investment for startups. “The initial investment to make the business viable is essential, ensuring that a planned development takes place. The angel investor plays an important role for investment funds, which can receive better structured deals in their portfolio”, Machado reported.

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To invest, it is not necessary to have a large volume of money, but keep in mind that it is a high-risk negotiation. “We have an investor of R$ 3 thousand and others for R$ 100 thousand. When a startup signals us, we send a questionnaire to our angels asking how much do you want to invest? At Curitiba Angels we have people who started out investing little and today invest high amounts. I really like to guide at the beginning, and I ask for calm. Share your risk”, commented the president of the angel investor network.

What is the gain of an angel investment?

It is impossible to know what the gain when making an investment of this type. A good example is the manager of a football athlete. He helps when the player is not known and invests for him to advance in his career. When the player gains fame and gets a good transfer to another club or even renews the contract, the return of the money comes to the businessman, that is, to the angel investor.

“Angel investing is risky. We have companies that were part of our portfolio and needed a greater contribution to grow. She is valued, but she needs to negotiate what was invested to follow another path. It is an exchange that can yield up to 30 times more of what was invested, but that depends on several factors,” said Machado.

Where to look for the best startup to invest?

Curitiba is the capital of startups and angel investors.
Photo: Disclosure / SCMS

Curitiba is a reference when it comes to startups. The city government created, through the Curitiba Development Agency S/A, the Vale do Pinhão program, which helps companies and people to seek paths of entrepreneurship.

Marlon Alves Cardoso, general coordinator of entrepreneurship and innovation programs at the Curitiba Development Agency, believes that the city offers great alternatives for those looking to invest.

“Vale do Pinhão manages to offer this with activities such as the City of Startups. We have several investment vehicles, we have angels who collaborate with each other or in groups. It is important that before thinking about financial resources, it is necessary to have an organization, connections with people who guide the best steps and opportunities”, added Marlon.

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How to participate?

Interested parties can look for the Vale do Pinhão website or even the Worktiba Digital platform, a channel for connections, training and tools, such as unlimited chat and online meetings via videoconference, in addition to the simultaneous storage and editing of files in real time.