Despite the fact that businesses relating to the internet or apps are more easily scalable than traditional sectors, analysis of investment decisions (Figure 2) show that business angels invest in all sectors as long as the investment criteria are met.
Table 1. Sector distribution of business angel investments (EBAN, FiBAN)
A target company does not need to be a new business; rather existing companies and companies seeking new growth (restart or start-again) are also generating more and more interest. A company of this kind which is attractive to investors is typically one in a situation where business has stagnated for years until a spark of growth has arisen in the company. The spark can have been ignited by a multitude of causes: a new product, demand on the international market, a generation or ownership change.
The turnover of a company seeking investment is typically below one million euros, but the company aims at aggressive growth.