FAQ | Italian Angels for Growth

Business Angel

What exactly does a Champion do?
The Champions are those IAG members who lead each investment: they follow the investment by making themselves available to the founder, they protect the interests of IAG business angels and the quality of the operation.
Who decides when it is time to disinvest?
Founder and investors will seek together the most favorable time to enhance the company, without haste. Times and ways to start the exi tprocess are covered in the investment contract.
Who is in charge of verifying the good performance of an investment?
The Champions who, on behalf of all other IAG members, are in charge of giving the maximum support to the company
Are there tax benefits for those who make investments as business angels?
Investments by Italian taxpayers in Innovative Startups and SME’s regularly registered in the Registro Imprese are deductible in the amount of 30% of the capital invested. Larger incentives may apply from time to time.
Are there any special requirements to become a Business Angel?
It is a voluntary activity, which implies the availability of a certain level of discretionary capital that should not exceed 5-10% of your available assets.
How are investments made?
Once a member joins an investment consortium for a startup, he or she will only have to follow the guidance provided by the Champions. Typically, the investments of each member flow into an SPV (Special Purpose Vehicle), which will then acquire and hold the stake in the startup.
What distinguishes an investment of a business angels group from that of a fund?
Business angels have total control over every single investment choice, while in a fund there is a special management team that makes the choices on behalf of all investors, or limited partners. Of course, being business angels requires investors to carry out certain activities on their own that would otherwise be left to the fund management company, such as setting up the SPV, analyzing the reporting and managing the holding. IAG supports the Champions and all the other investors in doing this.
Is the Champion paid for his work?
Yes, for successful exits he or she is awarded a carried interest from the return earned by other IAG members.
Do all members have to become Champions?
No, it is an opportunity, not an obligation.
Do all members have to invest every year?
No, investment choices are discretionary.

Founder

Are there any areas in which investments are not made?
Yes, there is a shortlist of prohibited or inappropriate sectors, including tobacco and weapons.
What is the average response time?
Our commitment is to be able to respond to every request within a few days.
How does the screening committee judge the projects?
The screening committee is composed of partners with industrial and investment experience, assessing the startup on: potential market size, uniqueness and technological or business defensibility, quality and experience of the business team, results achieved so far. To these criteria, intrinsic to the project, a fifth criterion is added: appropriateness of the evaluation and correctness of the terms of the proposed investment operation.
How long does it take on average before an investment by IAG Business Angels is made?
Usually the path from the first meeting to having the money in the bank takes 2 to 6 months.
If a project is discarded, can it be submitted again?
If there are substantial developments, sure!